The all-important Budget session had commenced on Monday following an address by President Ram Nath Kovind to both the houses of Parliament. The session will be held in two parts – the first part of the session would conclude on February 11, 2022. After a month-long recess, part two of the session would begin on March 14, 2022, and conclude on April 8, 2022.
On Monday, the topline equity indices on BSE and National Stock Exchange (NSE) surged nearly 1.5 per cent on account of intense buying across sectors after the Economic Survey 2021-22 projected a healthy growth for the economy in the near term.
The S&P BSE Sensex rose 813.94 points (1.42 per cent) to settle at 58,014.17 while the Nifty 50 climbed 237.90 points (1.39 per cent) to end at 17,339.85.
"As expected the budget 2022 was focused around the steps to revive the economy by providing productive spending and subsidies. Market participants reacted positively to the big infrastructure boost in the Budget. The most beneficial sectors are Banking, Infra, realty, capital goods, Healthcare and fertilizer. The expectations of higher corporate earnings are also favourable for growth. Basically, there was no major negative in the budget, which is why markets have welcomed it with a good rise. However, in this process of enhanced spending, government has not addressed the concern related to inflation which may prove to be the major bottleneck in economic recovery worldwide."
"FM’s speech was the shortest of all her budget speeches and possibly with the maximum impact. Despite the temptation to go populist with so many state elections lined up – the FM stuck to the script without playing to the gallery. A key highlight of the budget is the enhanced thrust on capex rising to almost 2.9% of the GDP acknowledging the fact that the Private sector capex has still to kick in.
The provision to tax gains on transfer of digital assets is a very pragmatic move and acknowledgment that digital assets are not going away – might as well embrace them. The intention to have a digital rupee is a far-sighted move whose positive impact will be felt over time. The thrust on new generation tools and technologies to take the country forward was pretty evident with various provisions to leverage digital technologies and drones, among others to digitize land records.
The intention to allow Income-tax Payers to revise their IT returns for 2 years post the end of the relevant assessment year to account for understated income should go a long way in increased compliance and reduced litigation . Respect and Trust for the Tax Payer is clearly evident in this provision . Could the FM have done more by way of direct relief to the marginal taxpayer – possibly yes.
Like the previous budget, the FM has been conservative on the tax receipts and very realistic on the overall fiscal deficit. The divestment target at 65000 crores should be easily achievable. From a capital market perspective a neutral budget. Like always the challenge is in execution. Let’s hope the execution is at par with the intentions and thrust of an excellent budget."
"The writing was there on the wall. Any sudden and sharp fiscal consolidation steps announced could have throttled the nascent and uneven recovery of the Indian Economy. A 6.9pct fiscal deficit target alleviates that pain. The successive waves of the pandemic have made it more difficult to reduce government debt as a share of GDP in the medium term. The budget has focused on boosting overall demand though and has invested more in infrastructure.
Hence as I see it, we are in high growth, high inflation environment. The budget is behind us and now 9th Februrary’22 become relevant. The commentary around RBI raising rates in its coming meeting would be that much more relevant. Having said that, in my opinion, equity markets in India are likely to see 20000 on the nifty and about 65000 in SENSEX by December 2022 on the back of 15-20 per cent earnings growth in FY23. The journey, however, is likely to be very volatile. Markets will test patience on the downside as markets adjust to higher risk premiums on the back of an impending increase in interest rates, both globally and locally. The Indian rupee is likely to depreciate which could see FII selling, particularly those names where private equity holding is high (Read consumer tech and other self-proclaimed tech companies). Sectors like infrastructure , real estate , industrials , financials ,Information technology and pharmaceuticals are likely to outperform while consumer staples and discretionary likely to underperform"
"The government has spelled out its priorities very clear. The higher capex and thrust on infra are required to keep the growth rate high. Though there may be some concerns on a higher deficit, that is entirely for the development of key infra projects. The Make in India thrust along with a focus on infra will create the required number of new jobs for various age brackets.
Rs 48,000 cr allocation to build 80 lakh affordable homes is a big booster for the real estate sector. The focus on EV charging infra and urban planning will complement real estate further.
Robust execution of the budget plans, no further COVID waves, and crude trading in a favorable range will be key to the market and economy going forward."
"The 2022-23 budget has laid clear emphasis on prioritising economic growth with focus on capital spending to generate growth and employment. The announcement relating to MSMEs and thrust on digital banking will further go a long way in supporting the economy. The MSME sector has been one of the most impacted during the pandemic. Focusing on further supporting the MSME sector and reduce stress in this segment, the Government has widened the ECLGS scheme & revamped CGTMSE (Credit Guarantee Trust for Micro and Small Enterprises).The ECLGS will be extended up to March 2023 and its guarantee cover will be expanded by Rs 50,000 crore to total cover of Rs 5 lakh crore. The CGTMSE scheme will be revamped with required infusion of funds. This will facilitate additional credit of Rs 2 lakh crore for MSMEs and expand employment opportunities. We believe that the NBFC sector will also benefit from the allocation of Rs. 48,000 cr (under the PM Awas Yojana) for affordable housing unveiled by the honourable Finance Minister during the budget announcement. This move will accelerate the credit demand in the economy and positively affect the performance of NBFCs catering to the sector."
"Accelerated investments into core sectors that have a big multiplier effect on GDP, coupled with a focus on job creation, skill development and facilitating digitally enabled financial inclusion summarises the Union Budget. Stability in the tax regime is also commendable as it makes investments predictable. The Government has also opened doors for digital currency and its different uses making the budget historic for the financial services sector."
"In terms of economic support, especially on infrastructure and taxation fronts, the Union Budget 2022 has delivered along expected lines. The only material deviation happened on the fiscal deficit front, a 6.9% projected deficit for FY23, 100 basis points higher than what we anticipated. Precisely why bond yields reacted strongly, rising by over 17 basis to touch 6.85 per cent. We do sense some scope in shoring up receipts through higher divestment, than what the budget has estimated at Rs650 bn for FY23. With Air India out of the way, and given the government’s long divestment pipeline, this could help the reduce the fiscal deficit. There is also scope for higher revenue through tax collection, if Covid does not disrupt the trajectory in FY23.
The FM has rightly focused on doing the heavy lifting by raising capex levels and investments in infrastructure. Even after accounting for spends through IEBR, the consolidated capital expenditure is stated to rise by 15%, which is heartening. To put it in context, the gross budgetary support of Rs 7.5 lakh crore will likely be 19% of total expenditure versus range of 12-13% in last six years. While it is not rising as a percentage of GDP, it is on the right path.
A major positive was the status quo on taxation, especially direct taxes. Given that the government has witnessed bumper collections on the direct tax front, as well as on the GST front, the need of the hour was to not tinker with rates. The Finance Minister's gesture was applauded by the stock market.
While the key always lies in execution, we note several key strides around renewables, for a more digital economy, expected ECLGS scheme extension for MSMEs, more 'atmanirbhar' defence, more allocations to PLI schemes, and cuts in input duties for Refining industry and Gems and Jewellery.
No negative, it is said, is a big positive. Given a growth supportive budget, our conviction is higher for another strong year for equities. We continue to bet on a structural rise in consumption in India, and a boost to the ongoing 'unorganized to organized' trend. With the accelerated digital supercycle and strengthened corporate balance sheets, coupled with a benign period for cost of capital, we expect Indian equities to close 2022 on a higher high compared to 2021."
"Hon’ble Finance Minister today announced an encouraging set of measures, targeted towards rapid growth of MSME sector and the economy. The extension of ECLGS scheme by Rs 50,000 upto March 2023, with a special focus on ailing hospitality sector is crucial to facilitate its faster recovery.
The credit support has also been provided in the form of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) revamp with credit of Rs 2 lakh crore for micro and small enterprises. These initiatives will help financial institutions to mitigate risk and stimulate credit outreach to MSMEs.
The Government also announced inter-linking of Udyam, e-SHRAM, NCS & ASEEM portals and providing services such as credit facilitation and entrepreneurial opportunities. This will certainly aid in the MSME sector’s formalization and growth. The Government has time and again shown distinctive support to the country’s MSME sector and encouraged its contribution to the Atmanirbhar Bharat imperative.
The outlay of Rs 6,000 crore for programmes to accelerate MSME performance will surely assist in boosting the sector’s resilience and operational efficiency. Overall, the measures announced in Union Budget 2022-23 will unlock rapid recovery and holistic growth of the MSME sector."
"Capex focused budget promises continuity of growth with an increase in capex by 35.4%. Would ensure GDP growth at above 8% in FY23 and nominal GDP to be around Rs.260 Lakh Crs / approx. $3.5 trillion. While Fiscal math is worrying the bond markets with yields are up 15-20 bps, equity markets are in euphoria on the back of a budget that has shown credibility, continuity, and consistency. Capital gains taxation on Crypto / Digital Assets and introduction on Digital Rupee in 2022-23 brings about the intent of the government to regulate the space even before the Crypto Bill is tabled in the Parliament"
"Nifty ended the Budget day (Feb 01) in the positive for the second consecutive session after a volatile trade. Nifty opened gap up, rose in the early part of the day to make an intra day top at 12 noon. Post the Budget speech, Nifty fell sharply to give up all the gains and go into negative territory. It then recovered sharply and ended the day close to the intra day high. At close Nifty was up 1.37% or 237 points to 17576.9.
On a day when the volumes on the NSE were subdued (considering the Budget presented during the day), Metals, Capital Goods, Realty, IT, Healthcare and FMCG indices rose the most while Auto and Oil & Gas indices fell the most. BSE Midcap index rose 1.08% while Smallcap index rose 0.92%.
World stocks started a new month on firmer ground as a slew of reassuring comments from Federal Reserve officials helped calm rate-hike jitters even asstrong US tech earnings lifted market mood soured by expectations of central bank rate rises. Australia's central bank ended the bond buying campaign as expected, but pushed back hard on market wagers for an early rate rise.
Nifty ended in the positive boosted by growth inducing measures of the Union Budget. Advance decline ratio also remained in the positive. Markets are enthused by the credible conservative estimates in the Budget. However high inflation and interest rates remain the two spoilsports. 17745-17805 could be the next resistance for the Nifty while 17374-17410 could be the support."
The rupee pared its initial gains and settled 17 paise lower at 74.82 (provisional) against US dollar on Tuesday on the back of higher-than-expected borrowing in the next financial year.
Investors were cautious after Finance Minister Nirmala Sitharaman on Tuesday said that the government will borrow about Rs 11.6 lakh crore from the market in 2022-23 to meet its expenditure requirement, forex traders said. Further, the govt said fiscal deficit in 2021-22 will be 6.9 per cent of GDP and 6.4 per cent in 2022-23, and this also weighed on sentiments.
At the interbank foreign exchange, the rupee opened at 74.53 against the American dollar, witnessed an intra-day high of 74.41 and a low of 74.87 against the greenback. The local unit finally ended the day at 74.82, 17 paise lower than its previous close of 74.65.
(PTI)
"It is a long-term growth oriented budget which the market has welcomed given no headroom for cautiousness & populist measures. It is expected to support growth in the future; however, it is missing some balancing measures in context of current inflationary & slowing economy. Supportive measures were needed for rural, agriculture, low taxpayers & for sectors impacted by the pandemic. High capex, fiscal deficit & borrowing plans in the background of a high inflation, commodity & oil prices and rising interest rates will be challenges in the short to medium-term."
Tata Steel, Sun Pharma, IndusInd Bank, Larsen & Toubro (L&T), Ultratech Cement and ITC were the top gainers of the day while M&M, Power Grid, SBI, Bharti Airtel, NTPC and Maruti Suzuki India were the top laggards.
The S&P BSE Sensex settled at 58,862.57, climbing 848.40 points (1.46 per cent), while the Nifty 50 gained 237.00 points (1.37 per cent) to end at 17,576.85.
Tata Motors reported a 27 per cent on-year rise in its total sales at 76,210 units in January 2022. The automaker's total sales last year was 59,866 vehicles.
Total domestic sales inched up 26 per cent at 72,485 units last month up from 57,649 vehicles year ago, Tata Motors said in a statement.
"A pro-India budget with huge capex thrust that will have a multiplier effect coupled with a big tech push and productivity boost through digital infrastructure. The budget ushered in a paradigm change towards housing and urban development while using the fiscal space created out of buoyant tax collections towards financial inclusion"
"The growth-oriented Union Budget 2022-23 has buoyed overall sentiments and provided an ambitious blueprint for the next 25 years. Emphasis on infrastructure building through the PM Gati Shakti scheme, increase in outlay on capital expenditure by around 36% to Rs 7.50 lakh crore, infra spends in PPP mode, steps for urban capacity building, thrust on the digital ecosystem, support for start-up ecosystem, renewable energy, electric vehicles, chemical-free farming etc. are positive steps in steering the nation to India@100.
There is a good balancing act between fiscal consolidation and growth prioritisation. Extension of Emergency Credit Line Guarantee Scheme (ECLGS) scheme by a year to March 2023 and increase in outlay by Rs. 50,000 Crs. are welcome announcements, expected to significantly help the MSME sectors and the hospitality sector specifically, by aiding the sector’s financing needs. Emphasis on ‘inclusive development and ‘financing of investments’ would lead to rapid financial inclusion and extension of the credit ecosystem.
Earmarking 68% of the capital procurement budget of the defense sector for domestic industries is expected to sustain investments, attract fresh capacity creation and promote Atmanirbhar Bharat. Continued emphasis on the importance of mobile connectivity and broadband for economic development, especially in rural India, will certainly boost the telecommunication and associated sectors.
Ease of Doing Business 2.0 is a step in the right direction and the Single Window clearance mechanism will go a long way in this direction. The push on digital economy, fintech innovation and introduction of central bank digital currency are expected to give the much-needed thrust to a growing fintech sector. Amendments proposed in the Insolvency & Bankruptcy Code would enhance the resolution process's efficiency. BWR expects that the various announcements will have a positive impact on the country’s growth agenda."
"The equity markets were cheerful on the announcement of huge outlay of capital expenditure in overall infrastructure development. This Union budget will also lay the foundation for economic growth through public investments as India emerges from a pandemic induced slump. Measures announced for manufacturing, infra building including roads, highways, railways, renewable energy, MSMEs, farm sectors etc, if executed with diligence will go a long way in attracting private capex & lead to accelerated economic growth and of course robust earnings growth for India Inc. Also the fiscal outcome is more or less in line with street expectations & government has refrained from going on the path of sharp consolidation and opted for growth. Hardly any tinkering with tax & avoiding populist measures was also received well by the market participants. Some sectors which get a boost seem to be banking & financial services as a proxy for credit growth & capex, real estate proxy plays like building materials including cement, capital goods, automation, digital focused IT companies, technology, consumption."
"The Union budget 2022-23 continued the focus on 'quality' expenditure and increased the capex by 35% which is ought to have a multiplier effect on the economy. Apart from public-private investments, clean energy focus is amply clear with additional allocation to Solar PLI and policy around battery swapping.
Issuance of green bonds and promotion of GIFT great move to attract global investors.
On the consumption front, there is a bit of disappointment as there is no direct stimulus to spur growth and no major announcement on privatisation and the overall divestment targets are underwhelming.
Finally from taxation perspective, 'No news is good news'. Capital gains surcharge reduction for unlisted equity and debt is a positive development.
Overall it is a growth oriented budget and the financial numbers seems realistic (revenue nos for FY 22 are tad conservative). It has laid the roadmap for India to achieve sustainable growth in the years to come by delivering on key expectations."
"The Budget is growth-inducing and does the heavy lifting by sharply increasing capital expenditure. The focus on boosting manufacturing as well as an underlined emphasis on areas such as startups, modern mobility and clean energy, shows the FM has prioritised long-term growth. Individual taxpayers may feel a bit disappointed with the lack of direct tax cuts but this Budget lays the ground for a multi-year growth boom. The FY23 fiscal deficit has come in higher than expectations. Let’s hope the interest rates and inflation do not remain high for long."
India's largest automaker Maruti Suzuki India reported a fall of 3.96 per cent in its total sales at 154,379 units in January. It had sold 160,752 units in the year ago period.
Last month, Maruti's domestic sales declined 8 per cent to 1,36,442 units from 1,48,307 units year ago, the company said in a filing.
TVS Motor Company reported a 13.14 per cent drop in total sales to 2,66,788 units in January. It had sold 3,07,149 units in the same month last year.
Total two-wheeler sales for January declined 13.73 per cent to 2,54,139 units, the company said in a statement.
"The overall budget looks good from the market's perspective as the budget is focused on growth however there is some volatility in the market which is normal for any budget day. Technically, 17600-17800 is a supply area for the market and if Nifty manages to cross this zone then we can expect a move towards a fresh all-time high in the coming days otherwise some pullback can be expected towards 17000 level. The budget could be a 24hr event then the market will focus on earnings growth and global cues.
ITC is rallying post budget as there was no talk related to taxation on tobacco or cigarette which is a positive for the stock because there is always a fear of tax hike and recently WHO recommended 75% tax on Tobacco products. Technically, 210 is a strong base of the counter and now it is breaking out resistance of 227 that may lead to a move towards 240 level."
At 2:45 pm, the S&P BSE MidCap index was trading at 24,877.33, up 264.32 points (1.07 per cent).
Here's how the midcap stocks are performing:
The government has announced a sharp jump of 35.4 per cent in capital expenditure to fund various infrastructure projects in 2022-23. In her Budget speech, Finance Minister Nirmala Sitharaman said capital investment holds the key to speedy and sustainable revival and public spending is required to take the lead. Click here to read
Kotak Mahindra Bank chief Uday Kotak tweets:
"The big highlight of the budget is the 35% increase in Capex following the same increment last year means the government's main focus on manufacturing and infrastructure that will automatically result in growth and employment. There was no negative surprise for the market in light of state elections. Overall the budget is sensible to give more fuel to the growth engine of the economy. The investor needs to be focused on Capital Goods and Infra, Thermax, LT, Siemens, Grindwell Norton, KNR Construction, PNC infra, ACC."
The benchmark equity indices continued to trade around 1 per cent higher at 2 pm. Among sectoral indices, the public sector bank index was down over 1 per cent while the metal index are surging over 3.5 per cent.
Here's how the sectoral indices were performing at 2:10 pm:
"Today’s union budget announcements reiterate the commitment of Ministry of Finance towards energizing the regulatory ecosystem at GIFT IFSC which will have a huge multiplier effect for the country’s economic growth. The setting up of world class universities without any domestic regulation will facilitate skilled manpower in the financial services space. International arbitration centre will strengthen the dispute resolution mechanism at GIFT IFSC & enhance ease of doing business at GIFT.
The exemption of income tax would promote various business activities such as ship leasing & financing, offshore fund management and offshore banking activities in GIFT IFSC"
"The Finance Ministry has presented a growth-oriented budget with focus on infrastructure and development. Creation of unified logistics platform and developments of 100 new cargo terminals in the next three years are significant steps in improving the supply chain eco system in the country. Many measures have been around digital adoption and ease of doing business initiatives which will improve business efficiency and go a long way in driving economic growth. The Government has reiterated its commitment towards Housing for All by allocating Rs 48000 crore towards this scheme, around the same as last year. Interventions to improve credit to the pandemic afflicted MSME sector including hospitality industry is also a step in the right direction. Infrastructure status given to Data Centers will provide a huge boost to the fast evolving digital environment of the country. The FM has said that the SEZ Act will be replaced with a new law and we will be waiting for further details given the significant impact of this on the commercial real estate sector.
However, the government could have given further boost to the housing sector given the strong multiplier effect the sector has on the economy. The sector would have benefitted immensely by demand boosting tax benefit measures. The housing sector has made a substantial recovery from the pandemic lows and due attention here would have gone a long way in sustaining the growth momentum."
India will manufacture 400 new, energy-efficient Vande Bharat trains in the next three years, Finance Minister Nirmala Sitharaman announced in her Budget on Tuesday.
That apart, with an eye on farmers, the rail sector will also develop “One Station One Product”, which will leverage local produce carried on the railways, she said. Bringing out new products, Railways will also roll out postal railways for carriage of parcels, giving a thrust to a new business area. Click here to read
A new digital rupee powered by blockchain technology will be issued by the Reserve Bank of India starting 2022-23. This was announced by Finance Minister Nirmala Sitharaman during the Union Budget 2022 today. Blockchain technology also powers cryptocurrency, non-fungible tokens (NFTs) and it is a distributed ledger, updated in real-time. In a blockchain, the transaction records cannot be changed at all and the ledger is transparent and authentic, which is why it is used in cryptocurrency as well.
Meanwhile, the government has also announced that any income from transfer of digital assets will be taxed at 30 per cent rate. This will impact gains from cryptocurrency and NFTs as well, which have seen a boom in India in recent times. Click here to read
"The formal announcement of the Honble. Finance Minister on launch of India’s CBDC, the Digital Rupee, during 2022-23 is a much awaited and positive move.
This will trigger a wave of preparatory activity amongst retail payments providers and apps to offer payment mechanisms using the Digital Rupee, along the lines as been seen in China with major Digital payments players and apps offering Digital Yuan payments via their apps. There will likely be a similar model that will be seen in India to support adoption and use of the Digital Rupee, which is paramount for its success.
Another effect of this in the slightly longer term could be that the dependence on UPI for small value payments could potentially reduce with the Digital Rupee gaining traction in time. Given the level of growth being seen on UPI and the associated stress on technology infrastructures of issuers and banks, this may be a good thing after all.
What will be keenly awaited though is clarity on digital currency owner identification and any associated reporting requirements for payments apps, and whether the anonymity that physical currency enables is an attribute that will be supported in the Digital Rupee."
"The Union Budget 22-23 have taken a growth-oriented approach for most of the sector focusing majorly on agriculture, farming, education and health sector. Starting with the PM Gati Shakti which will put forth the economy giving a boost to the supply chain and employing over 44% of the population in this sector while continuing to contribute to the country’s gross value. The encouragement to Agricultural universities will create necessary awareness of organic farming, modern-day agriculture, and will enable to provide better career opportunities for the upcoming generation. The idea of the Kisan drone for crop assessment, digitization of land records, spraying of insecticides and nutrients will give inclusive development to farming. With this phase, India is to grow at 9.27%, the highest among all large economies. With a focus on contributing to the environment, chemical-free natural farming focusing on soil, biodiversity and human well-being is a welcome move. Overall major decisions taken are favouring in striking a balance between boosting rural demand and investing in infrastructure while continuing on the path of fiscal consolidation to maintain macro stability."
Finance Minister Nirmala Sitharaman Tuesday announced the launch of the Digital Rupee — a central bank digital currency (CBDC) — 2022-23 onwards. Here's everything you need to know
Presenting the Union Budget 2022, Finance Minister Nirmala Sitharaman Tuesday said that the country is expected to grow at 9.27 per cent in the coming year. The Finance Minsiter also said that the Budget gives a blueprint of economy from India at 75 to India at 100, citing the four pillars of development — inclusive development, productivity enhancement, energy transition and climate action. Click here to read
Here are some of the key announcements made by Finance Minister Nirmala Sitharaman in her speech:
-Digital rupee issued by RBI in 2022-23
-Additional allocation of Rs 19,500 crore for manufacturing solar modules
-Capital expenditure to be around Rs 10.68 lakh crore
-Ken Betwa linking project to cost around Rs 44,605 crore
-Spectrum auctions this year to enable 5G roll out by 2023
-Special Economic Zones Act to be replaced soon
-68 per cent of the capital procurement budget for Defence to be earmarked for domestic industry
-Rs 1 lakh crore allocated to states to help investments
-Taxpayers can now update Income Tax returns within 2 years
-Tax deduction limit to be increased from 10 per cent to 14 per cent for Centre, state govt employees
-Rs 48,000 crore allocated for completion of construction of 80 lakh houses
-Income from virtual digital assets to be taxed at 30 per cent
-Corporate surcharge cut from 12 per cent to 7 per cent
-Gross GST collection in Jan at record Rs 1,40,986 crore; possible due to rapid eco recovery
Effective capital expenditure of the Central government is estimated at Rs 10.68 lakh crore in 2022-23, about 4.1% of GDP: FM Nirmala Sitharaman
Spectrum auction will be conducted to roll out 5G mobile services within 2022-23 by private firms, says FM Nirmala Sithraman.
Impact: Bharti Airtel was trading 0.1 per cent lower, Vodafone Idea was up 2 per cent and RIL was up 0.9 per cent.
Digital rupee will be issued using blockchain and other technologies, to be issued by the Reserve Bank of India (RBI) starting 2022-23. This will give a big boost to the economy, FM Sitharaman said.
Clear Thrust On Fintech & Digitisation
There’s a clear thrust on digitisation, fintech, and lowering costs of transaction. Making postal savings interoperable through ATMs, netbanking, payment apps will provide convenience to senior citizens and the rural. Subsidizing MDR charges through Rupay and UPI is another positive.
ECLGs A Big Positive
ECLGS has been a boon for MSMEs in the pandemic. This extension and the increase in allocation is a great move. MSME credit has grown fastest in the last 12 months compared to other sectors.
Sensex extends its gains and briefly breached over 1,000 points higher amid Finance Minister Nirmala Sitharaman's ongoing budget speech.
Here's how other BSE indices were performing at 12:07 pm:
The Emergency Credit Line Guarantee Scheme (ECLGS) will be extended up to March 2023, the guaranteed cover will be expanded by Rs 50,000 crores to total cover of Rs 5 lakh crores, Finance Minister Nirmala Sitharaman said.
Shares of steel companies rose on announcement of 400 new-generation Vande Bharat trains.
Impact: Tata Steel, Jindal Steel and Power, JSW Steel were trading 1-2 per cent higher.
PM Gati Shakti Master Plan for Expressways to be formulated in 2022-23, to facilitate faster movement of people and goods. national highway network to be expanded by 25,000 km in 2022-23, FM Nirmala Sitharaman said.
Impact: The shares of listed road development companies such as IRB Infra, Ashoka Buildcon, and Dilip Buildcon rose over 2 per cent higher.
The benchmark Sensex at the Bombay Stock Exchange was up 850 points or 1.5 per cent and trading at 58,870 ahead of the budget presentation by Finance Minister Nirmala Sitharaman.
While the markets were up in line with the Asian markets, they also drew comfort from the fact that the Economic Survey showed that the government has enough fiscal space to push growth in the economy. Click here to read
The Railways will introduce 400 new-generation Vande Bharat trains that will be manufactured in the next 3 years, Finance Minister Nirmala Sitharaman said.
India's growth is estimated to be at 9.27 per cent, Finance Minister Nirmala Sitharaman says in her budget speech
Finance Minister Nirmala Sitaharaman in her budget speech said that the initial public offering (IPO) of Life Insurance Corporation of India (LIC) is expected shortly.
At 11:00 am, Sensex was trading over 750 points higher ahead of the presentation of the Union Budget 2022 in Parliament.
Finance Minister Nirmala Sitharaman begins the speech of Budget 2022.
The Cabinet approved the Budget 2022. The meeting at the Parliament has now concluded and Finance Minister Nirmala Sitharaman will present the Budget shortly.
The Cabinet meeting ahead of the Budget has concluded. The meet was attended by Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, Union Home Minister Amit Shah, Defence Minister Rajnath Singh, among other senior Cabinet colleagues.
Rupee gains 19 paise to 74.46 against US dollar in early trade.
(PTI)
Finance Minister Nirmala Sitharaman has arrived at the Parliament. She will present the Union Budget 2022-23.
Putting the spotlight on the way forward after the pandemic, the Economic Survey of 2021-22 has analysed aspects such as inflation, global liquidity measures, and rising energy prices to detail the risks for the economy going ahead. It has also taken stock of growing revenues to indicate the availability of fiscal space, should the government see the need to provide additional support.
The Survey has noted that growth in 2022-23 will be supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and the availability of fiscal space to ramp up capital spending. Click here to read
At 9:45 am, the Bank Nifty and Nifty Financial Services indices on the National Stock Exchange (NSE) were trading nearly 2 per cent higher. However, the Nifty Auto index was flat with slight negative bias.
Here's how the sectoral indices were performing:
"Economic Survey's projection of 8 to 8.5% GDP growth for FY23 on top of the 9.2% growth in FY22 reflects good growth momentum in the economy, which needs to be sustained. The Survey's confident message that there is enough fiscal room for capex indicates that the government is likely to give further push to infra spending in the Budget. Since growth is not widespread, the Budget is likely to give more relief for the stressed MSME segment.
The smart rebound in global markets led by the US and budget expectations have fuelled a late pre-Budget rally. But the relentless selling by FIIs is likely to put a cap to the rally in the short to medium term"
Finance Minister Nirmala Sitharaman and her team leave the Ministry of Finance in the North Block to present the Union Budget 2022 in the Parliament.
IndusInd Bank, ICICI Bank, Sun Pharma, HDFC, Bajaj Finserv and Infosys were top gainers in the early trade, while Dr Reddy's was the sole loser.
Here's how the other stocks in the BSE benchmark were performing: