Jaitley gets market thumbs-up; Sensex sees best Budget Day gain in 12 years

Decision to not impose a long-term capital gains tax or raise STT cheered

The stock markets gave a thumbs-up to Union Budget 2017-18, posting their biggest single-day gain in two months. Investors cheered Finance Minister (FM) Arun Jaitley’s decision to not impose a long-term capital gains (LTCG) tax or increase the securities transaction tax (STT). The Street also welcomed minister deciding not to overshoot the fiscal deficit beyond 3.2 per cent of the gross domestic product.
 
In the run-up to the Budget, market players were worried that the government might increase stock market-related taxes. The Street also feared populist measures, such as farm loan waivers, to counter the negative impact of demonetisation,