Arbitrage funds, popular with affluent investors, are set to see returns shrink by 25-35 basis points due to a proposed increase in securities transaction tax (STT) on equity derivative trades. The government’s budget proposal raises STT on futures sales, impacting the price anomalies these funds exploit. Despite this, their tax efficiency is expected to maintain popularity.
Adani Green among 2 stock recommendations for Monday
Domestic equities ended flat on Friday as MPC matched market expectations, while supportive measures announced by the RBI Governor helped strengthen the rupee.