Stock Market Highlights: Experts see infra, banking among other sectors benefitting the most from Budget 2022
Stock Market Highlights: Experts see infra, banking among other sectors benefitting the most from Budget 2022
Budget 2022 Stock Market Highlights: The Indian domestic equity markets welcomed Union Finance Minister Nirmala Sitharaman's fourth budget as the benchmarks ended higher on Tuesday amid several announcements in the Budget 2022-23. All Broader market indices gained as metal, Pharma and healthcare stocks gained the most amid various triggers for these sectors. Sugar, telecom and defence stocks gained as FM Sitharaman talked of unblended fuel to attract Rs 2 per litre extra excise duty, announced to rollout 5g this year and said priority will be to local defence manufacturing units to boost Aatmanirbhar Bharat. The markets also saw stocks related to infra, railways gaining amid several announcements for these sectors. Tata Steel, Sun Pharma, IndusInd Bank, Shree Cement, L&T, Ultratech Cement and ITC gained the most as Nifty closed near 17, 600, while Sensex settled with over 800 points gain on the Budget Day. BPCL, IOC, Tata Motors, Mahindra and Mahindra, Reliance Industries, State Bank of India, NTPC and ONGC declined the most in a positive market.
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FM Nirmala Sitharaman shares government's priorities - it is not inflation - READ
Union Finance Minister Nirmala Sitharaman on Wednesday shared the Modi government's priorities, saying inflation has cooled down in the last few weeks and that it is not a 'red lettered' priority. Speaking at the India Ideas Summit, she said that the Centre's priority is job creation and income distribution. She also sought to highlight that India is taking up the G20 president-ship in challenging times when global supply chains have been damaged and geo-political equations are volatile. She added that uncertainties in the energy sector were an area of concern for the government. Full Report
Domestic equity markets cheered the announcements made by Union Finance Minister Nirmala Sitharaman in the Budget 2022-23 as the benchmarks ended nearly 1.5% higher on Tuesday. There were positive announcements being made for infrastructure and allied sectors, telecom, sugar, jems & jewellery, agriculture and defense sectors. In view of the recent announcements made in the budget, stock market experts are mostly bullish on infra, metal, renewable energy and manufacturing sectors.
In a big boost to infra, FM Sitharaman announced an allocation of Rs 7.5 lakh crore towards capital expenditure for 2022-23, which is 35.4% higher than the ₹5.54 lakh crore allocated to capital expenditure last year.
Speaking of sectors to benefit from this budget, Ashis Sarangi, SEBI registered RIA, Pickright Technologies, said the budget appears to be benefit infrastructure, banking, power and metal industries.
He said the infrastructure industry, together with supporting industries such as metal, real estate, and cement, would be sectors to benefit the most with Rs 7.5 lakh crore allocation. It will also be beneficial to Banks & NBFCs. This capex spending will also push the private sector to spend more on capital goods," he said.
"Additional Rs 19,500 crores to manufacture equipment for solar power under the PLI scheme and clean energy, may also help Borosil renewable, Tata Power & IEX," added Sarangi.
Sonam Srivastava, Founder, Wright Research, is of the view that infrastructure, logistics, cement, capital goods, real estate, agriculture, digital & fintech players, sustainability and EV segments would see Budget announcements working for them.
"PM Gati Shakti initiative and policies to ease the compliance burden and increase digitization announced in the Budget 2022 will help these sectors perform well going forward," said Sonam.
Initiatives for the EV and green energy sectors like Battery swapping reforms, 19,500 Cr PLI for Solar PV modules and green bonds will aid new age sectors such as digital, Fintech and EV. "Paytm, Policybazaar, Tata Power, and Minda Industries would be the stocks to watch out for in this space, " added. Sonam.
Abhay Agarwal, Founder, and Fund Manager, Piper Serica, SEBI Registered Portfolio Management Service Provider, said the biggest beneficiaries are infrastructure companies and their ancillaries. Other winners would be renewable energy & biofuels, healthcare, education and financial tech sectors, he said.
Meanwhile, Sarangi said that the budget has failed to provide immediate assistance to rural income growth and has failed to stimulate rural consumption in the short run. " As a result, it will have a negative impact on the auto, FMCG, and white goods industries until the income situation improves," he added.
Technical check post pubget closing: "Nifty witnessed wild swing with the bands of 17200 and 17600. On the daily chart a green candle with large lower wick is formed suggesting buying at the lower levels. The band 17200 and 17600 are likely to remain active during the near term. Any decisive breakout on either side can induce directional move," Rupak De, Senior Technical Analyst at LKP Securities.
No headroom for cautiousness & populist measures: Vinod Nair, Head of Research at Geojit Financial Services.
"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"
Street cheered the budget: S Ranganathan, Head of Research at LKP securities
"The Union Budget with its big tech push and capex thrust has used the fiscal space arising out of buoyant tax collections to spur growth and revive private capex. The street cheered the budget as Indices rose 1.5% with its usual share of volatility as India VIX dropped sharply below 20. The paradigm change seen in the digital push together with the narrative for urban development quite clearly signalled a pro-growth stance"
Budget 2022 corporate sector taxation: Anil Singhvi explains what changed in the taxation, talks about changes for charitable trust and more in conversation with Anil GIri
Increase in capital expenditure a good sign for stock market: Nirmal Jain, Founder & Chairman, IIFL Group- FCA, tells Anil Singhvi
Watch Full Interview with Anil Singhvi here
Budget 2022: Budget is growth oriented from auto sector perspective
From an auto sector perspective, the Union Budget is growth oriented in nature with focus on capital expenditure and is positive for commercial vehicle segment, electric vehicles and tractor space. The key takeaways from the Budget in the auto space include: (i) Government stays committed to augmenting farm income via support to start-up ecosystem to drive technology application in farming; (ii) To further promote electrification, the government has proposed to come out with battery swapping policy, which also includes the concept of energy/battery as a service. This will help in developing requisite charging station ecosystem. The government plans to promote private sector to incur required capex in this domain.; (iii) Budget also includes robust allocation of | 7.5 lakh crore (up 35% YoY) as capital expenditure for FY23E, a big positive for commercial vehicle space, especially M&HCV segment & (iv) Concessional tax rate for new manufacturing set-ups at the rate of 15% is extended by one year. It primarily implies that eligible commissioning date has been extended from March 31, 2023 to March 31, 2024. It is expected to drive private capex, going forward. Shashank Kanodia - Analyst, ICICIdirect
Budget 2022 stock market reaction: Nifty, Sensex marginally slip
Benchmark indices Nifty50 and the Sensex saw minor correction from the day's high levels post Budget 2022 announcements. Stock market experts have dubbed it as non-populist, growth-oriented budget- one that caters to demand of all sectors. Nifty briefly slipped below 17,500, while the Sensex went on to touch 57,737.66 as its day's low.
Budget 2022 reaction: BOOSTER SHOT FOR INFRASTRUCTURE SECTOR
"The Budget seems to be focused on high impact areas and accelerating the capital expenditure cycle. Setting Capital Expenditure target of Rs. 7.5 Lac Crores, increase of 35% vis-a-vis FY22 is a major shot in the arm for the Infrastructure sector and certainly much higher than market estimates. It is pertinent to note the reference towards investments into capacity building initiatives within the Infrastructure sector for much needed skill upgradation pertaining to Project Appraisal, Planning, Design and Project management including Technical and knowledge assistance coming from multilateral funding agencies. This certainly suggests reorientation of focus towards much needed planning, monitoring and supervision of the massive investments being planned and not just splurging towards unleashing the Capital Expenditure cycle," Sandeep Upadhyay, Managing Director – Infrastructure Advisory, Centrum Capital Limited.
He said key beneficiaries are stakeholders in the Transportation and Logistics sector, where in Rs. 25,000 Crs is planned to be invested in FY23 in road sector along with further strengthening the ecosystem for Expressways. 100 new Cargo terminals to be built in next 3 years and manufacturing new generation 400 Vande Bharat trains with improved energy efficiency is a major push towards catalyzing manufacturing sector through robust demand being generated from the Infrastructure space.
Budget 2022: Where to park your money post Budget announcements? Which sectors are in focus, What is important in this budget and more
Budget 2022 Reaction: Budget is progressive, addresses all major expectations from various sectors
The budget is progressive and addresses all the major expectations from various sectors including Fintechs, EVs, MSMEs, Start-ups, etc. Allowing an extension of tax incentive by another year will hugely benefit the newly started ventures and will motivate the players to contribute to the macro-economic growth. The FM has suggested to setting up an expert committee to monitor mobilization of funds to start-ups through VCs and Private equities which is a major welcome step. The introduction of central bank digital currency will further boost the digital economy and will hugely benefit the Fintech ecosystem. With setting up of 75 digital banking units in next two years India is set to become a robust digital economy.-Ashish Jain, CFO, LoanTap
Budget 2022 Reaction: Government has resisted being populist despite big state elections
Sorbh Gupta, Fund Manager- Equity, Quantum Mutual Fund
• The government continues to focus on the supply side through high allocation to CAPEX. While this is good for the long term, we believe a boost on the demand side through tax cuts would have helped the economy in the near term via higher consumption.
• The government has resisted being populist despite big state elections & which is a big positive.
• The domestic focussed cyclical sector like banks, materials & capital goods are expected to do well.Budget 2022 Reaction- "The government continued with its pro-growth measures along with some fiscal prudence where manufacturing is a key theme where the government put focus through a sharp increase in Capex. The growth in the manufacturing sector will have a domino effect on different sectors to generate growth and employment. There is no negative trigger, therefore, the market will like the budget and if global cues will remain supportive then we can see new highs in our market soon," Sunil Nyati, Managing Director of Swastika Investmart Ltd.
Budget 2022: It was very courageous not to make any changes on direct tax front: Deepak Parekh, HDFC Chairman
Budget 2022: Overall budget is sensible to give more fuel to growth engine of economy
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.- Parth Nyati, Founder, Tradingo
Budget 2022: Visionary economic document to boost economic growth
"Overcoming the temptation to garner some votes through populist proposals, the finance minister has presented a visionary economic document to boost economic growth. By increasing the capex by 35.4% to 7.5 lakh cr thereby targeting an effective capex of 10.7 lakh cr, the government has declared that it would be doing the heavy lifting to achieve 8 to 8.5 % GDP growth in FY 23. The government has balanced growth with welfare programs for the poor with Rs. 48000 cr PM Awas scheme and Rs. 60000 cr for tap water for the poor 3.8 lakh households. In brief, a non-populist growth oriented budget"- VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Budget 2022 sets disinvestment target of Rs 65,000 crore for FY 23-Watch
Budget 2022 focuses on growth, good from stock market perspective, says Anand Rathi of Anand Rathi Group chiarman
IRCTC, Rail Vikas Nigam in focus
In the next three years, India plans to manufacture and construct 400 new VANDE-BHARAT trains. In the next three years, we also intend to build 100 freight terminals. The railway will create new items for MSME and will adhere to the "One Station, One Product" principle. The impact on railway sector will be quite positive as the sector privatisation may also be seen in the near future to some extent which will open the doors of innovation in the mundane sector policies. Increased operations in this sector will also be a key factor in pushing the growth element.IRCTC and Rail Vikas Nigam may be seen acting as a sector leader for the upcoming FY.- CapitalVia Global Research.
Budget 2022: How does Budget 2022 fare on taxation part, know from TP Ostwal
Budget 2022: ICICIdirect says custom duty cut on Methanol, Acetic acid to aid the domestic speciality chemical manufacturers
Budget 2022 with Anil Singhvi: All you need to know, live updates
Budget 202: 2 ICICIdirect on Higher than expected fiscal deficit: Higher than expected fiscal deficit to keep pressure on Gsec yield thereby impacting treasury profits of PSU banks
Pharma sector in focus: Due to its defensive nature, allocation will aid the pharmaceutical sector in recovering quickly from pandemic effects, and a gradual increase in growth will be seen throughout the year, with better technological support in routine activities. Sun Pharma and Laurus Labs may be seen beating the overall sector in the upcoming session -CapitalVia Global Research
Budget 2022: Big push to startup ecosystem
Piyush Nagda, Head -Investment Products at Prabhudas Lilladher
Rs 48,000 Crore allocation for housing loans and 80 Lakh new houses under PM Awas positive for Affordable Housing sector. Focus on creation of Digital infra, single portal for ease-of-doing business, digital skilling will strengthen Start-up ecosystem. Digitization of govt. process positive for tech companies, specially TCS, Infy and the likes.ICICIdirect on additional excise duty unblended Fuel: Unblended Fuel to attract additional excise duty of Rs 2 / litre. This would encourage ethanol blending of fuel. Positive for Sugar companies
Budget 2022: Select capital goods to attract up to 7.5% custom duty
Budget 2022: India to launch sovereign green bonds
Funds will be used for projects that will help reduce carbon intensity of the economy.
Sovereign green bonds will be part of government’s borrowing programme in FY23.
Proceeds to be deployed in public sector projectsBudget 2022 Cryptocurrency: 30% tax on crptocurrencies. Digital rupee to be issued using blockchain and other technologies; to be issued by RBI starting 2022-23.
This will give a big boost to the economy: FM Nirmala Sitharaman
Both Centre and States govt employees' tax deduction limit to be increased from 10% to 14% to help the social security benefits of state govt employees and bring them at par with the Central govt employees: FM Nirmala Sitharaman
Hike in Capex Rs 7.5 lakh crore Impact: ICICIdirect: 35.5% hike in Capex Rs 7.5 lakh crore or 2.9% of GDP will be a big boost for Infrastructure and Manufacturing sector.
Budget 2022 booster: Rs 7.50 lakh cores capital expenditure to boost growth, this is up by huge 35%
Budget 2022: 5G Auction set for 2022. A panel to be constituted for audio, video gaming progess: FM
Budget 2022: IBC Law to be changed to make resolution easy: FM
Budget 2022 boost to Aatmanirbharta: 68% of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbharta and reduce dependence on imports of defence equipment. This is up from the 58% last fiscal: FM Nirmala Sitharaman
Budget 2022: Promotion to batter segment, chip-based Aadhaar Card to be launched soon
Budget 2022: Use of Kisan Drones to be promoted for crop assessment, digitization of land records, spraying of insecticides and nutrients: FM Nirmala Sitharaman
ICICIdirect on drinking water project in Budget 2022: Rs 60,000 crore allocated for Jal se Nal Yojna to be beneficial for infrastructure sector and Pipe manufacturers.
"100 Cargo terminal - 100 gatishakti Cargo terminal to be developed in the next 3 years"
Yash Gupta- Equity Research Analyst, Angel One Ltd.
100 Cargo terminal - 100 gatishakti Cargo terminal to be developed in the next 3 years, positive for logistics sector and it will benefit company like VRL logistics, Gati - Yash Gupta
Budget 2022: PM Housing loan get allocation worth Rs 48,000 crore.
Budget 2022: Rs 60000 crore allocated for drinking water project.
ICICIdirect on ECLGS scheme : ECLGS scheme extended till March 2023 to benefit business growth for MSME focussed banks and NBFCs
Organic Farming to be encouraged: States will be encouraged to revise syllabi of agricultural universities to meet needs of natural, zero-budget & organic farming, modern-day agriculture: FM Nirmala Sitharaman
ECLGS Cover Budget 2022: ECLGS Scheme to be extended up to March 2023; a cover worth Rs5 lakh crore to be earmarked: FM
Budget 2022: The government's focus is on energy, transport, logistics and clean energy
Budget Points:LIC IPO likley to be launched soon
*Focus on digital econmy in this budget
*Government focussing on making lives of middle class people better
*This Budget will give direction for the growth of 25 years
*National Highways will be extended by 25,000 km during 2022-23
India's growth is estimated to be at 9.27%: Finance Minister Nirmala Sitharaman in Parliament
Budget 2022to give blueprint of economy: This Union Budget seeks to lay foundation & give blueprint of economy over ‘Amrit Kal’ of next 25 years - from India at 75 to India at 100: FM Nirmala Sitharaman
5 top stock Picks by Varinder Bansal: Founder: Omkara Capital. Ex- Fund Manager Varinder Bansal has picked 5 stocks on Budget Day and tells you which sector to focus on
Pharma Stocks to buy on Budget day – Yash Gupta, Equity Research Analyst, Angel One Ltd, has picked Divi's Laboratories Ltd and Supriya Lifescience Ltd in API manufacturing and Apollo Hospitals Enterprise Ltd from the healthcare sector
Budget 2022 Expectations: Top 10 investors' wishlist from Finance Minister
Finance Minister Nirmala Sitharaman will announce her fourth Budget on February 1, which is widely expected to be a growth-oriented budget. Most experts see Budget 2022 to maintain its thrust on CAPEX-related spending to support growth as we have seen throughout 2021 when the center came out with various production linked incentive (PLI) schemes.
“This Union budget could see FM announcing plans for higher capital expenditure outlay on healthcare schemes and to ignite India’s CAPEX cycle, which is aimed at boosting India’s inclusion in the global supply chain,” Mohit Nigam, Head - PMS, Hem Securities, said.
Full Report: Budget 2022 Expectations: Top 10 investors' wishlist from Finance Minister
Budget 2022: Pharma and Healthcare sector in Focus; Stocks to buy
Yash Gupta, Equity Research Analyst, Angel One Ltd
Pharma and healthcare sector have a lot of expectations for the union budget 2022-23 by Nirmala Sitaraman. The Pharma and healthcare sector has played an important role during the time of covid 19. It is expected that several incentives can be given to the pharma sector regarding setting up of new facilities, API (active pharmaceutical ingredient) and finished pharmaceutical product manufacturing in India.
Along with this, it is expected that some positive news for the Healthcare sector as well like increase in depreciation rate on setting up of new hospitals and giving credit for setting up of greenfield projects. Stocks to buy on Budget day – Divi's Laboratories Ltd and Supriya Lifescience Ltd in API manufacturing. Apollo Hospitals Enterprise Ltd in the Healthcare sector.
Top 6 expectations of D-Street from Budget 2022
Vinit Bolinjkar, Head of Research, Ventura Securities Ltd said that investors are expecting capex revival announcements in the upcoming budget to support growth for sectors like capital goods, engineering and construction, which will significantly improve order booking in power, utilities and capital goods companies.
Full Report:Top 6 expectations from D-Street from Budget 2022: Vinit Bolinjkar of Ventura Securities
Rupee gains 19 paise to 74.46 against US dollar in early trade
ATF price hiked by a steep 8.5 per cent to record levels across the country-Oil company price notification
Brokerage industry expectations from Budget 2022- Reforms around STT, long term capital gains, stamp duty & GST
As the Union Budget draws near, the brokerage industry has sought reduction or removal of securities transaction tax (STT), long-term capital gains (LTCG), stamp duty and GST in the upcoming Budget 2022-23. Dividend taxation is another area that needs the government's immediate attention. They feel this will be a step forward towards making domestic stock market more investment-friendly. They are of the view that reforms around these taxes will only aid the economy going forward. Experts also want the government to provide more clarity and pace in the government’s asset monetization and divestment program.
FULL Report: Budget 2022: Brokerage industry seeks reforms around STT, long term capital gains, stamp duty & GST
Budget 2022 Stock Picks: HUL, Dabur, Bajaj Auto among 10 top stocks for budget
Ajit Mishra, VP Research at Religare Broking said that participants have high expectations as always and expect the budget to benefit sectors such as agriculture, infrastructure, FMCG, auto, and pharma.Mishra has over 17 years of experience in equity market research. Before joining Religare, he was associated with SMC Group as a senior technical analyst.
Sanjiv Bhasin top Picks on Budget Day
IIFL Securities Sanjiv Bhasin gave his stock picks for Budget 2022: Watch here
Global View on Sun Pharma, BPCL, Tata Motors, HPCL
Indian markets are likely to trade higher on Tuesday, tracking positive global cues, but there will be stock-specific action in which global brokerage came out with their reports on business development, or earnings outlook.
Full Report: Global View on Sun Pharma, BPCL, Tata Motors, HPCL could give 20-38% return in next 12 months
FM Nirmala Sitharaman reaches Parliament-WATCH
Union Finance Minister reached Parliament house to present her 4t Budget on Tuesday
Gainers and losers on Budget Day-Sensex gained over 700 points, while Nifty went past on 17,500 on the Budget Day. IndusInd Bank, Britannia, Sun Pharma, ICICI Bank, HDFC Life, Axis Bank, Kotak Bank and L&T gained the most
BPCL, Tata Motors, ONGC, IOC, Bajaj Auto, Dr Reddy's, Bharti Airtel and ITC were among top losers
Dalal Street Voice: Indian manufacturers pivoting businesses to clean energy and EV, says Akshaya Bhargava of Bridgeweave
Akshaya Bhargava, Founder & Executive Chairman, Bridgeweave said that increase in climate change has caused an increase in capital allocation towards clean energy. Indian companies have been increasing capital allocation to Electric Vehicles (EV) R&D.
In an interview with Zeebiz's Kshitij Anand, Bhargava said that clean energy companies like Adani Green, Inox Wind, and Orient Green power are trading at steep valuations and will be susceptible to steep corrections.
Market on Budget day- Frontline indices closed 7 of 12 instances in negative; how would it react this year? know experts' views
The Indian markets has briefly closed negative in 7 out 12 sessions on Budget-day, a report by Edelweiss Alternative Research said. The frontline indices rose almost 5 per cent during the session when Budget 2021 was presented – first post covid Budget.
It should be noted that the Budget was presented twice (interim and original) in the year 2014 and 2019 owing to the general elections.
Stocks in Foucs on Budget Day: Benchmark indices ended with strong gains on Monday, January 31, 2022, tracking positive global cues. The S&P BSE Sensex surged 813.94 points or 1.42% at 58,014.11. The Nifty 50 index soared 237.90 points or 1.39% to 17,339.85. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Tuesday, February 1, 2022.
Read Full Report Here: Stocks in Focus on February 1: BPCL, Tata Motors, SCI, Easy Trip Planners, GAIL and many more
Budget top Picks: Vimta Labs, APCOTEX industries Mangalore Chemicals are Sandeep Jain's top Picks
Anil Singhvi’s Strategy on Pre & Post Budget 2022 Levels
PREBUDGET LEVELS
Nifty 17,275-17,300 is support zone, 17,525-17,650 is a higher zone.
Bank Nifty 37,700-37,850 is a support zone, 38,350-38,500 is a higher zone.
POST BUDGET LEVELS
Support zone on Nifty is 16,850-16,900, below that 16,425-16,625 is a next support zone.
Higher zone on Nifty is 17,750-17,850, above that 18,000-18,150 is a higher range.
Day support zone on Bank Nifty is 37,050-37,225, below that 36,375-36,525 is the next support zone.
Day higher zone on Bank Nifty is 38,725-38,850, above that 39,200-39,500 is a higher range.
Read full report here: Anil Singhvi’s Strategy on February 1: Know Pre & Post Budget 2022 Levels
Buy, Sell or Hold-: What should investors do with Info Edge, Canara Bank & Amber Enterprises?
Indian market closed well in the green on Monday ahead of Budget 2022. The S&P BSE Sensex rallied more than 800 points while the Nifty50 closed above 17300 levels.
Sectorally, buying was seen in realty, IT, consumer durables, public sector, and energy space while selling was seen in metal space.
Read Here: What should investors do with Info Edge, Canara Bank & Amber Enterprises?
'Markets may face excessive volatility today'- Union Budget 2022 will be announced today. Markets might face excessive volatility today. Intraday traders have to be little cautious today as historically it is observed that markets show huge swing movements on budget day on either side. Good announcements are expected in railway infra, domestic manufacturing incentives and renewable energy.
On the technical front, the key resistance levels for Nifty50 are 17410 followed by 17490 and on the downside 17270 followed by 17190 can act as strong support. Key resistance and support levels for Bank Nifty are 38250 and 37700 respectively.- Mohit Nigam, Head - PMS, Hem Securities
Economic Survey hints at good growth momentum- "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"- Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Growth booster for Budget-What do we need for growth in the Budget? Which tax rates should be slashed in budget and more... Find Here
Indices open higher: Benchmarks Nifty50 and the Sensex started on a positive note on Budget Day as the former opened above 17,500, while the Sensex surged over 60o points to open at 58,672.86. Infosys, Tech Mahindra, Britannia, Maruti and ICICI Bank were top gainers
Sensex gains in the pre-open- The 30-share Sensex surged over 600 points as all stocks traded in the green in the pre-open
Stocks to buy on Budget Day- Zee Business research analyst Ashish Chaturvedi has picked 10 stocks to buy today
CASH STOCK
BUY GIPCL TARGET 91 SL 87
FUTURES
BUY NAVIN FLUORINE TARGET 4200 SL 3825
OPTIONS
BUY RECL 140 CE TARGET 5 SL 2
TECHNO
BUY IRB INFRA TARGET 270 SL 246
FUNDA
BUY BANK BARODA TARGET 115 SL 103
INVESTMENT PICK
BUY M&M TARGET 1110 DURATION 6 MONTHS
STOCK IN NEWS
BUY SCI TARGET 130 SL 119.45
MY CHOICE
BUY HAL TARGET 1565 SL 1405
BUY ASTRA MICRO TARGET 232 SL 211
BUY NBCC TARGET 48.70 SL 46
MY BEST
BUY IRB INFRA TARGET 270 SL 246Brokerage on Tata Motors- CLSA on Tata Motors (CMP: 518)
Sell, TP Rs 408
Consol Ebitda better than expected Domestic (CV)& (PV) biz Ebitda margin disappointed due to higher than-expected commodity costs
Believe valuation is expensive
Jefferies on Tata Motors(CMP: 518)
Maintain Buy, Target increase to 635 from 625Oil edges higher on tight supply- Oil prices edged higher on Tuesday, trading near seven-year highs hit last week, as investors bet supplies will stay tight, with a limited production hike by major oil producers and a strong post-pandemic recovery in fuel demand, said a Reuters report. Brent crude for April delivery was up 14 cents, or 0.2% at $89.40 a barrel at 0150 GMT. The front-month contract for March delivery expired on Monday at $91.21 a barrel, up 1.3%. U.S. West Texas Intermediate crude rose 13 cents, or 0.2%, to $88.28 a barrel, having gained 1.5% in the previous day.
Jefferies on BPCL (CMP: 397)- Maintain Buy, Target 540
21% Ebitda miss on absorption of excise duty reduction on its inventory Refining profits beat est. on multi-yr high margin even as refining thruput was lower on 2-yr basis Val favorable at 1.8x P/BJP Morgan on BPCL (CMP: 397)
Overweight, TP Rs 550
Strong operating qtr Consol earnings highlight benefit from BORL consolidation
Headline PAT a miss likely bcz of consensus under estimating inventory losses on marketing fuels post excise duty cut
Stk performance dependent on privatizationBrokergaes on Sun Pharma
(CMP:835) | Buy, Target 1100
Sustained momentum in specialty biz to drive operating leverage
Raise FY22-24CL earnings est by 1%-5% to reflect 3Q beat Specialty business to be in the driver’s seat; will dictate its valuationCredit Suisse on Sun Pharma (CMP : 835 )
Upgraded to neutral from underperform, target raised to 810 from 695CITI on Sun Pharma
Buy, TP raised to Rs 1070
Specialty on a Roll
Pick up in global specialty rev ($183m, +24% QoQ) was key to note as leading products have shown good momentum Raise FY22/23/24E EPS by c6-7%
Remain upbeat on co’s specialty bizGlobal Markets-Asian indices were trading higher on Tuesday, the day India will see Union Finance Minister Nirmala Sitharaman presenting Budget 2022-23. Japanese Nikke 225 was up 0.75% and Hang Seng Index higher by 1.05%. In the US market, Dow Jones close 1.17% higher, Nasdaq Composite gained whooping 3.41% and S&P 500 nearly 2% higher.
SGX Nifty hints at positive opening for Indian markets
Ahead of the Union Budget, SGX Nifty hinted at a positive opening for the Indian markets as the Nifty Futures at the Singaporean Exchange were trading higher by 0.95% or 165 points around 8 am on Tuesday.
-FIIs, DIIs January 2022 data
Foreign Institutional investors (FIIs) remained net sellers in the India market in January as they sold to the tune of Rs 41,346.35 crore in the Indian markets in January 2022. Ahead of the Budget FIIs, sold worth Rs 3,624.48 crore on January 31. Domestic Institutional Investors were net sellers with Rs 21,928.40 crore in January
GST collection:
Goods and Services Tax collection in January crossed Rs 1.38 lakh crore in January, a growth of 15 per cent over the year-ago period. It is the fourth straight month when GST has crossed Rs 1.30 lakh crore.
Economic Survey painted India in an optimistic light: Indranil Pan, Chief Economist – YES Bank
The Economic Survey painted India in an optimistic light with good macro-stability indicators touted as a buffer against the uncertain global environment. The response of the policy makers to COVID-19 has been mostly in the form of supply-side measures rather than a Keynesian demand push. A flexible policy approach has enabled steady the ship and also provide India with a bounce pad to emerge back on a strong footing. A stronger bounce to private investments is envisaged with healthier balance sheets – both for corporates and banks. The survey highlighted that India is well placed to achieve an 8.0-8.5% real growth in FY23 even as tackling the imperatives of high global energy prices remains a critical challenge. Given this high real growth, it remains to be seen what nominal growth is assumed for drafting the Budget as this will have an implication on the revenue generation assumptions.
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