"Some simplification of capital gains tax (CGT) is warranted, given the complexity of the current system. For example, the taxation across all equity categories (listed, unlisted, overseas) should be broadly similar," Seshadri Sen of Alchemy Capital Management told Moneycontrol in an interview.
However, one risk is that if the effective rate of equities CGT goes up, it would have a sharply negative effect on the market, he feels.
The Head of Research with more than 25 years of experience in Indian market, believes tech stocks look attractive from a medium-term perspective (more than one year). The stocks have underperformed in CY22 and this has stripped the froth off the valuations.
Growth has largely held up – while it could slow somewhat in CY23, it would not be significantly worse than long-term trend rates, Seshadri says. Edited excerpts from the interview: