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Sensex, Nifty Tank, Eway Bill Deferred et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Feb 2, 2018 1:06 PM 2 min read
Editorial

Sensex closes 839 points lower, Nifty at 10,760 on back of Budget announcement of tax on LTCG; Government defers roll-out of GST e-way bill due to technical glitches; IT department issues notices to about a lakh Bitcoin investors who are yet to pay their taxes; Zomato raises $200 mn from Ant Financials - subsidiary of Alibaba Group, takes valuation to $1.1 bn; Amazon reports highest profit ever in Q4 at c. $2 bn, on back of $789 mn tax benefit as part of the tax reforms; Deutsche Bank reports net loss of $2.7 bn, hit by a $1.7 bn charge due to the U.S. tax overhaul. 

End of Day Wrap-up (Friday / February 2, 2018) #UnionBudget2018 #LongTermCapitalGainsTax #HealthCare #Cryptocurrency #Sensex #Nifty #Budget2018 #Bitcoin #Zomato #Amazon #Alibaba #Transfin

Editor's comment: Sensex closes 2.3% down 839 points, Nifty at 10,760 on back of LTCG tax woes. This is its biggest single session fall since August 24, 2015, when it lost 1,624.51 points. The fiscal deficit target for FY18 was also extended to 3.5% of GDP, from the 3.2% pegged earlier. This in all likelihood prompted the investors to book their gains. Investors were also worried that higher rural spending could create inflationary pressure and force RBI's hand to sit tight on loosening its policy.

 

Zomato becomes the latest one to enter the unicorn club with Ant Financials, a subsidiary of Alibaba Group pumping in $200 mn in the company. The funding includes a $50 million secondary share sale by Zomato shareholder Info Edge to Ant Financials, which will dilute its stake in Zomato to about 30.91% post the fresh capital infusion.