Budget 2020 My Pick: CTT reduction? If that happens, you really should eye this stock

Nirmala Sitharaman is going to present Budget (#BUDGET2020ZEE) on February 1 and everyone has some expectation or the other in mind. Depending on how things pan out on Budget day, certain stocks will gain in a major way. Unstoppable profit is likely if we choose the right stock! For investors, Zee Business is always at the forefront to identify such profitable stocks. This time a name that has come up is MCX India. Here we tell you about one expected decision by government that can bring huge profit in your portfolio. Ahead of the Budget day announcements by government, purchasing MCX stock can be beneficial, here’s how!

Market expert, Sandeep Jain says, "We talk about long term capital gains (LTCG) and Securities Transaction Tax (STT), but in this Budget, we can expect a reduction in commodity transaction tax (CTT) in commodity market. Industry players are emphasizing this since years.  So, there’s an expectation that government may announce a CTT relaxation this time.

WHAT'S SO GOOD ABOUT MCX STOCK? 

Jain explained, "If we talk about September 2019 quarter, the net profit of MCX India was Rs 72 crore, and It was Rs 36 crore in 2018. Due to Iran and US crude oil tension, we can trace brilliant movement on Gold and crude oil that led to increase in volatility, which means there’s an increase in volume as well.

Indices are set to receive good response and the company is going to launch a contract for it. Also, the company is also going to get benefits from the contracts they going to get in futures. According to Sandeep Jain, government will definitely take a step on CTT. So, its right to pick MCX India stock. 

Jain added that after the removal of MCX stock from F&O, it has become a stock for pure investment. Traders won’t choose this stock unnecessarily. Investors can invest on this stock with the target price of Rs 1600.