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Mumbai: The recent bounce in mid-cap and small-cap shares may have more legs in the days ahead. Short-term technical indicators are pointing to a further run-up of 5% in their indices after having gained roughly 5% in the previous three trading sessions though market participants are doubtful whether the recovery is more permanent after the sharp sell-off in the previous six months.On Wednesday, the Nifty Midcap 150 index was up 2.37%, Small-cap 250 rose 2% and Microcap 250 gained 2.2% at close. All three indices are up between 4.7% and 5.2% in the last three days, against the 2.25% upmove in the benchmark Nifty 50. The nervous sentiment in the domestic market has eased of late, tracking the improved mood globally, also with selling by foreign investors subsiding.119232169"With the recent fall in the dollar index from 110 to 103 levels, and FIIs covering shorts and turning buyers on Tuesday, we have seen some pullback move in the market," said Ruchit Jain, vice president at Motilal Oswal Financial Services. "The entire market breadth has turned positive, and we have seen the small-cap and mid-cap indices close above their 20-Day Simple Moving Average, which is an important short-term market indicator."Jain is betting on an upmove of 3-5% in these indices in the short term.From September 27, when the market decline started, to March 3 - the start of the current bounce back, the mid-cap 150 index had fallen 20.5%, small-cap 250 was down 25.4% and micro-cap 250 declined 25%.

Mumbai: Various shareholders of ICICI Securities who will receive parent ICICI Bank shares as part of the share-swap arrangement in the delisting process could end up paying capital gains tax. Tax consultants said in most mergers and acquisition arrangements, investors do not pay taxes but specifically in this case, shareholders would have to shell out taxes even if they do not sell the ICICI Bank shares they receive as part of the deal."Exemption does not exist for a share swap in this case, and accordingly, there is a capital gain trigger in the context of shares of ICICI Bank allotted to shareholders of ICICI Securities pursuant to the scheme of arrangement," said Ketan Dalal, managing director, Katalyst Advisors. "The tax trigger is unfortunate because it arises without monetisation."The brokerage's shares will trade on domestic bourses for the last time on Friday. As part of the scheme of arrangement, ICICI Bank will issue 67 shares for every 100 equity shares of ICICI Securities held by shareholders. The record date to identify public shareholders whose ICICI Securities shares will be cancelled and will receive new ICICI Bank shares has been set for Monday, March 24.This is how the capital gains on the share swap would be calculated. The fair market value (FMV) of the ICICI Bank shares received will be considered the sale price, and the difference between the FMV and the original purchase cost of ICICI Securities shares will be taxable as capital gains.119232062Lets assume an ICICI Securities shareholder receives 67 ICICI Bank shares and her purchase price is ₹713.80 per share. With ICICI Bank shares currently trading at ₹1,313, the investor would have to pay a 12.5% long-term capital gains tax on the difference between ₹713.80 and 67% (67/100) of ₹1,313. This would amount to a tax payout of around ₹2,074 for 100 shares, excluding the surcharge and cess thereon. "Unlike typical mergers or amalgamations, this specific transaction does not qualify for tax-neutral treatment," said Nilesh Tribhuvann, managing partner, White & Brief - Advocates & Solicitors. "The FMV of the ICICI Bank shares received by shareholders will be considered the deemed sale price. Capital gains tax liability will arise on the difference between this FMV and the original acquisition cost of the ICICI Securities shares."Shares of ICICI Securities have gained 23% over the past year, closing at ₹877 on Wednesday, while ICICI Bank shares have risen 21% during the same period, ending at ₹1,313.Dalal said while the share swap would not be classified as a securities transaction tax transaction (trades done on stock exchanges), the recent Budget has reduced the tax rate on long-term capital gains to 12.5% from 20% earlier even for non-STT transactions, easing the tax burden. However, for short-term gains, the applicable tax rate will be based on the investor's income tax slab, unlike STT-paid transactions, which enjoy concessional tax rates.

WASHINGTON: The Federal Reserve held interest rates steady on Wednesday, as expected, but U.S. central bank policymakers indicated they still anticipate reducing borrowing costs by half a percentage point by the end of this year in the context of slowing economic growth and, eventually, a downturn in inflation. Taking stock of the Trump administration's rollout of tariffs, Fed officials actually marked up their outlook for inflation this year, with their preferred measure of price increases expected to end the year at 2.7% versus the 2.5% pace anticipated in December. The Fed targets inflation at 2%. But they also marked down the outlook for economic growth for this year from 2.1% to 1.7%, with slightly higher unemployment by the end of thIS year. Policymakers said risks had increased, with a near unanimous sentiment in saying the outlook for the year was muddled. "Uncertainty around the outlook has increased," the Fed said in a new policy statement that accounts for the first weeks of the new Trump administration and the initial rollout of what White House officials say will ultimately be global tariffs on imported goods. The Fed left its policy rate in the 4.25%-4.50% range. The Fed also said it will slow the ongoing drawdown of its balance sheet, known as quantitative tightening. Fed Governor Chris Waller dissented from the policy statement because of the change in balance sheet policy. LOWER GROWTH, HIGHER UNEMPLOYMENT The rate projections matched the expectations set by financial markets ahead of the meeting, and kept intact the Fed's general outlook that gradually slowing inflation will allow further monetary policy easing. But it may be a rockier road getting there. While not mentioning President Donald Trump or tariffs in the statement, the projections for higher inflation this year coincide with the unveiling of his tariff plans. It appeared, though, that the Fed for now is looking through the price shift involved in those import taxes, treating them as a one-off change rather than a persistent source of price pressures. Underlying inflation beyond 2025 was unchanged from the Fed's projections in December, expected to return to 2% by the end of 2027. The projection for rate cuts beyond this year was also unchanged, hitting 3.1% by the end of 2027, near the level seen as having a neutral effect that neither encourages or discourages spending and investment. The Fed cut its benchmark interest rate by a full percentage point last year, but has kept rates on hold since December as it waits for further evidence that inflation will continue to fall, and, more recently, for more clarity about the impact of Trump's policies. Compared to Trump's promise of a coming economic "golden age" because of his push to impose tariffs, deport large numbers of immigrants and loosen regulations, the Fed's outlook forecasts growth at 1.7% this year and just 1.8% in both 2026 and 2027, with the unemployment rate at 4.4% this year and 4.3% in 2026 and 2027. That is above the lows of recent years and above the latest reading of 4.1% in February. Fed Chair Jerome Powell will hold a press conference at 2:30 p.m. EDT to elaborate on the latest policy statement and projections.

US President Donald Trump has described his phone conversation with Ukrainian President Volodymyr Zelenskyy as “very good,” saying that discussions focused on aligning Ukraine’s and Russia’s requests following his separate call with Russian President Vladimir Putin.The conversation lasted approximately an hour, and Trump indicated that further details would be provided soon. “Just completed a very good telephone call with President Zelenskyy of Ukraine,” Trump wrote on his Truth Social platform. “Much of the discussion was based on the call made yesterday with President Putin in order to align both Russia and Ukraine in terms of their requests and needs. We are very much on track.”Trump also confirmed that Secretary of State Marco Rubio and National Security Adviser Michael Waltz would release a statement outlining the points discussed.On Tuesday, Trump spoke with Putin about a possible partial ceasefire. Putin agreed not to target energy infrastructure but refused to back a full 30-day ceasefire.Kyiv confirmed that Zelensky was briefed on the 90-minute call between Trump and Putin on Tuesday, during which Putin agreed to a 30-day pause on strikes against Ukraine’s power grid.Despite both sides saying they supported the temporary truce, Ukraine and Russia accused each other of continuing attacks on energy infrastructure. Zelenskyy Urges Halt on Energy Infrastructure StrikesFollowing the call, Zelenskyy emphasised that the US should oversee a proposed 30-day pause on energy infrastructure attacks. This temporary ceasefire was reportedly agreed upon during Trump's conversation with Putin, though details remain unclear.Ukraine has repeatedly accused Russia of targeting civilian infrastructure, including hospitals and power facilities, despite ongoing discussions about a ceasefire. The Kremlin has denied these claims. Meanwhile, Russia’s Defence Ministry stated that its air defence units had shot down multiple Ukrainian drones over different regions.Ukraine and Russia Conduct Major Prisoner SwapIn a separate development, Ukraine and Russia have carried out one of the largest prisoner exchanges of the war. A total of 175 Ukrainian soldiers were released in return for 175 Russian prisoners.Zelenskyy hailed the exchange as a significant step and noted that some of the freed Ukrainians had been “persecuted by Russia for fictitious crimes.” He also confirmed that several of those released had fought in Mariupol, the southern city that endured a devastating siege by Russian forces in the early months of the invasion in 2022.While Ukraine has long pushed for an "all-for-all" exchange as part of broader ceasefire negotiations, this remains an unresolved issue. Zelenskyy thanked the United Arab Emirates for helping to mediate the swap and reiterated his commitment to bringing all captured Ukrainians home.Russia Calls Swap a 'Goodwill Gesture'Russia’s Defence Ministry described the return of Ukrainian prisoners as a “gesture of goodwill.” However, Ukraine also secured the release of nearly two dozen additional soldiers “through measures outside of exchanges,” according to Zelenskyy, though he did not provide further details.“All the Russian soldiers are in Belarus, where they are being provided with the necessary psychological and medical assistance and given the opportunity to contact their relatives,” the Russian Defence Ministry said in a statement.