Latest share market news | Market up by 5%


Hello, friends I, Jagdeep Singh, welcome you to Groww channel Today we will talk about an event that a lot of investors like me have been waiting for a long time. We would look at the market every day and see losses, and would be scared away. But today was the day when our portfolio went atleast 3-4% up. To talk facts, Sensex went up 5% Nifty went up more than 5%. Bank Nifty went up more than 8% And a sector which we have been worrying about Auto sector, of which we have been waiting for recovery Today it went up more than 9%. Friends, what happened today that market went up 5%? To talk about it this is happening for the first time in the last ten years that market has gone up by 5% Friends, is it happy news for us? Or can it cause troubles in the future? Sometimes when news comes in the market market gets overrated and investors suffer losses. I will tell you at the end of the video how this will impact us not so positively. The first reason why the market went up today is Corporate Tax Reduction Until now, a company had to pay on an average 30% taxes. If a company made 100 rupees, it had to give 30 rupees to the government. Now the government has reduced it to 22%. So the effective tax rate has become 35.6%. So the profits will increase. The profit and loss will turn out good in the upcoming days because of which the market has gone up. Friends, a lot of investors among us invest in derivatives. In July 2019, an extra surcharge was levied on derivatives and the investors were demotivated. The market had gone down. The government removed that extra surcharge. And positivity has come back in the market. You must have many times that a company did a buyback of its shares A company buys back its shares until now companies had to pay taxes to buy back shares. The government has removed that tax too. Because of which the tax burden on the companies have come down. You must be thinking that I said all nice things about the market that it is going to benefit investors Many investors have already taken benefit of this Will there be any harm too? Friends, to talk about data, with this announcement the revenue that the government gets is reduced by 1.45 lakh crores. This will impact the fiscal deficit. To explain this in simple terms if deficit increases inflation happens. So there are chances of deficit increasing in the upcoming days then inflation also increases. If inflation happens, then our income, FDs etc that we save will be directly affected. So, friends, this is a cycle. If you get benefits, in the future, you could get setback too. To talk further about the fiscal deficit, let’s talk about this government it has taken care of the deficit It has been kept under control It will be interesting to watch what happens in the future how the government will maintain the fiscal deficit and balance the tax loss. Friends, you must be wondering if this is the right time to buy. Should I buy today or tomorrow? Friends, I have always told you if your company is good and you have done good research if you are a disciplined investor then you will definitely make money. You don’t have to worry about timing the market. Instead, give your investment time to grow. If you are thinking about investing, then this is as good a time to invest as any. If you are thinking that the market grew 5% today then it will keep growing, then it is a speculation. If you are planning to speculate, as I have always told you, Do not indulge in speculation. If you enjoyed this video, please like it. Comment below what you think– whether the market will go up or down. You can tell us why you think so. Subscribe to our channel because we will make more videos on financial knowledge. Happy Investing!

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