The government's plans to earn from the stock market will be hit!
The impact of the fall in the stock market has started affecting the business of brokerage and trading platform companies. Zerodha CEO and co-founder Nitin Kamath said that for the first time in 15 years, his business has seen a decline. On the social media platform X, Kamath said that the number of traders and the total trading volume have seen a decline of more than 30 percent.
According to Nitin Kamath, trading activity on the platforms of all brokers has seen a decline of more than 30 percent. He said that for the first time since starting the business 15 years ago, there has been a decline in business. World markets have been witnessing a decline since US President donald trump announced the imposition of tariffs. trump said that tariffs on goods coming from mexico and canada will come into effect from march 4. Apart from this, the tariff on sugar imports has been doubled to 20 percent.
According to Nitin Kamat, the decline in trading activities may affect the government's income from Security Transaction Tax (STT). He said that if this trend continues, the STT collection for the financial year 2025-26 could be below Rs 40,000 crore, which is 50 percent less than the government's estimate of Rs 80,000 crore. Kamat said that he has no idea where the market will go from here, but I can tell about the broking industry. We are seeing a big decline in both traders and volume. At the end of trading on february 28, the Sensex was down 1,414.33 points or 1.90 percent at 73,198 and the Nifty was down 420.35 points or 1.86 percent at 22,124. The market performance has been very weak in February. Out of 500, 450 Nifty stocks closed in the red. During this period, Nifty has fallen by 5.89 percent and Sensex has fallen by 5.55 percent.
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