Week ahead: All eyes on Finance Ministry, RBI, SEBI, regulatory bodies meet

The past week was one of the most uncertain ones for markets as well as for policy makers. It is so because of the introduction of long term capital gains tax, the talk of which took place in the two years before Budget.

The coming week will be as dynamic.

Finance Ministry and regulatory bodies including Securities and Exchange Board of India and Reserve Bank of India will meet on February 10.

This meeting is more relevant now after the  Sensex fell by 839 points a day after the Union Budget was tabled. The government and SEBI may discuss  measures if markets continue to be in the red.

On Monday, SGX will launch Single Future and Options. The government and SEBI officials may discuss to corrective action for limiting the  migration of business from India. Although, Budget has already abolished short term gain in GIFT city, which makes the IFSC-situated exchanges at par with any other exchange.

The government may also outline the time line for making bond market domestically. One of the questions discussed would be if the  25 percent borrowing in bond market should be done in at once, or in a phase manner.

Associations are planning to put some pressure on the government to abolish Securities and Transaction tax if LTCG is implemented. However, it is unlikely  that the government will budge..

The past week was the worst  for Varkrangee and PC Jeweller. Varkrangee touched 52 week low after media reports of SEBI investigation. And still, sell order for more than 1 crore shares is pending. And market dumped PC jeweler stock due to investment of Varkrangee in the company.

There was action off the street too. Shah Rukh Khan's Alibaug bungalow was seized by the income tax department and  raids were conducted on companies in relation of Panama paper leak on the day of the day of Budget.