Budget 2022 Market Share Update Live: The Benchmark Equity Index in the BSE and the National Stock Exchange (NSE) ended almost 1.5 percent higher after an easily evaporated trading session on a budget day because market participants reacted positively to large infrastructure encouragement in the 2022 budget delivered by Minister of Finance Nirmala Sitharaman S & P BSE Sensex rose 848.40 points (1.46 percent) to settle at 58,862.57 while Nifty 50 rose 237.00 points (1.37 percent) ended at 17,576.85. Previously on the second day the index opened more than 0.8 percent higher and up about 1.7 percent with a sensex reaching a height of 59,032.20 and nifty touched 17,622.40 during the FM budget speech.
Minister of Finance Nirmala Sitharaman sent its fourth budget today (February 1, 2022) where it made several major announcements from announcing the Digital Rupee issued by the RBI to the allocation of capital expenditure around Rs 10.68 lakh Crore In terms of economic support, especially in the field of infrastructure and taxation, the 2022 Union budget has delivered along the expected line. The only material deviation occurs in the fiscal deficit front, a deficit that is projected to be 6.9% for FY23, 100 basis points higher than we expect. Right why bond yields reacted strongly, increased by more than 17 bases to touch 6.85 percent. We feel some space in destroying acceptance through a higher divestment, than expected by the RS650 BN budget for FY23. With Air India out of the way, and given a long government divestment pipe, this can help reduce the fiscal deficit. There is also a scope for higher income through tax collection, if Covid does not interfere with the trajectory at FY23.
FM has focused correctly to carry out a heavy appointment by increasing the capex level and investment in infrastructure. Even after accounting to spend through IEB, consolidated capital expenditure was declared to rise 15%, which was encouraging. To include it in context, gross budget support of 7.5 lakh crore rs is likely to be 19% of the total expenditure versus a range of 12-13% in the past six years. Even though it doesn’t rise as a percentage of GDP, it’s on the right path The main positive is the status quo about taxation, especially direct taxes. Given that the government has witnessed a collection of bumper on direct tax fronts, as well as on the GST front, the clock’s need did not rate the tariff. The Minister of Finance’s movement was placed by the stock market.
While the key is always located on the execution, we recorded several main steps around renewable energy, for more digital economies, ECLGS scheme extensions expected for MSMEs, more defenses ‘Atmanirbhar’, more allocations for the PLI scheme, and cutting input for industry Purification and gems and jewelry Not negative, said, is a big positive. Given a budget supporting growth, our beliefs are higher for strong years for equity. We continue to bet on structural improvements in consumption in India, and encouragement for the ongoing ‘unorganized’ trends’. With a supercycle digital accelerated and strengthens the corporate balance sheet, coupled with the benign period for capital costs, we hope India’s equity to close 2022 in high-high compared to 2021. “