FINANCEOUTLOOKINDIAJULY, 20268REPORTCBDT SETS COST INFLATION INDEX AT 384 FOR FY27: CHECK DETAILSMSCI INDIA REBALANCING COULD DRIVE $2.3 BILLION IN PASSIVE INFLOWSEMERGENT BECOMES INDIA'S FASTEST STARTUP UNICORN AT $1.5 BNEQUITY MF CASH HOLDINGS FALL TO 19-MONTH LOW OF RS 1.84 LAKH CRIBM'S $100 BN CRASH: WHAT IT MEANS FOR INDIAN IT STOCKS?WINDFALL TAX ON DIESEL & ATF EXPORTS HIKED AS CRUDE PRICES SURGEThe Central Board of Direct Taxes (CBDT) has notified the Cost Inflation Index (CII) at 384 for the financial year 2026-27, a key figure used to calculate inflation-adjusted capital gains tax for eligible taxpayers. The index, notified under Section 72 of the Income-tax Act, 2025, will apply from April 1, 2026, for Tax Year 2026-27 and subsequent tax years.The new index is higher than the 376 notified for FY2025-26, reflecting inflation over the past year. While the annual notification is a routine exercise, it carries greater significance following changes to the capital gains tax regime announced in the Union Budget 2024, which restricted the availability of indexation benefits for many taxpayers. The upcoming MSCI India rebalancing could drive estimated passive inflows of about $2.3 billion into Indian equities, with as many as 12 inclusions and three exclusions likely in the August review cycle, according to a report by JM Financial Research.The upcoming MSCI India rebalancing could drive estimated passive inflows of about $2.3 billion into Indian equities, with as many as 12 inclusions and three exclusions likely in the August review cycle, according to a report by JM Financial Research. Emergent, AI software creation platform, has raised $130 million in a Series C round led by Creaegis with participation from Claypond, Sentinel Global, Khosla Ventures, Lightspeed and Y Combinator participating.Emergent, AI software creation platform, has raised $130 million in a Series C round led by Creaegis with participation from Claypond, Sentinel Global, Khosla Ventures, Lightspeed and Y Combinator participating. Equity mutual fund (MF) schemes' cash holdings dipped to a 19-month low in June as fund houses remained buying into Indian stocks even though the war issue had been put on a backburner and oil prices had declined.Cash holdings across equity mutual fund schemes stood at Rs 1.84 lakh crore in June - the lowest level since November 2024, when they were at Rs 1.80 lakh crore. The June cash balance declined 2.3% from Rs .88 lakh crore in May. As a percentage of total equity AUM, cash holdings stood at around 4% during the month, down from 4.9% Shares of oil and gas as well as aviation companies are likely to remain in focus on Wednesday after the Centre increased the windfall tax on exports of diesel and aviation turbine fuel (ATF), in response to the recent surge in global crude oil prices amid the escalating conflict between the United States and Iran.The revised rates, announced by the Finance Ministry in a notification issued late on Tuesday, take effect from July 16. Under the new structure, the export duty on diesel has been raised to Rs 15.5 per litre from Rs 8.5 per litre, while the levy on ATF exports has been increased to Rs 14.5 per litre from Rs 7.5 per litre. On the other hand, the export duty on petrol has been reduced to Rs 2.5 per litre from the earlier Rs 4 per litre. IBM's stunning stock market collapse has sent shockwaves through global technology stocks, raising a critical question for Indian markets: could the warning signs spill over to India's IT giants such as TCS, Infosys, Wipro, HCLTech, and Tech Mahindra?Just 42 days ago, on June 2, IBM shares were up 13% for the year and trading at an all-time high. Fast forward to July 14, and the company suffered its biggest single-day stock market crash since 1968, with shares plunging 25%. The fall has erased more than $100 billion in market value in just six weeks, reigniting concerns about the future of enterprise technology spending.
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