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Budget 2019: Investors alert! These 3 sectors will see highest activity; hot buying opportunity
The government is planning to woo the middle class prior to the crucial Lok Sabha elections this year. As far as the Indian equity market is concerned, the budget will likely to bring limelight on these sectors. The sectors that are expected to remain focused are agricultural sector, capital goods sector and PSU banks.
Budget 2019, sectors in focus: Modi government is all set to announce its first interim budget today (February 1). The government is planning to woo the middle-class prior to the crucial Lok Sabha elections this year. As far as the Indian equity market is concerned, the budget is likely to bring limelight to these sectors. The sectors that are expected to remain focused are:
1. Agricultural sector:
The agricultural sector will remain in focus. As the government is expected to announce favorable schemes for farmers, keeping in mind the current situation of the Indian agricultural sector. Finance Minister had said earlier that the top priority of the budget will be to bring favourable reforms to the farmers. The schemes that government is likely to work upon are:
- Aid of Rs 8000 to Rs 10,000 p.a to per family
- An interest free loan of Rs 3 lakh to farmer
- Loan of Rs 2 lakh or Rs 3 lakh without any collateral.
- Removal of premium on crop insurance
2. Capital goods sector:
The government can increase its infrastructural expenses under the schemes like, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Pradhan Mantri Gram Sadak Yojana (PMGSY). Capital goods companies are expected to have more order inflows due to this. Domestic equipment industries will remain in focus as an increase in custom duty on power equipments is also expected. The Budget 2019 is likely to announce huge expenditure on rural infrastructural development.
Watch live streaming of Budget 2019 here:
3. PSU banks:
The PSU banks are expected to receive huge capital from the governments. Also, three state-run banks were on Monday removed from the list of lenders who are mandatory implementing the Reserve Bank of India`s (RBI) Prompt Corrective Action (PCA) framework for banks struggling with huge accumulated non-performing assets (NPAs or bad loans). The three banks are Bank of India, Bank of Maharashtra and the Oriental Bank of Commerce, the RBI said in a statement.
''Great news for banking sector - 3 banks (Bank of Maharashtra, Bank of India and Oriental Bank of Commerce) have come out of PCA norms which will enable credit flow. This will especially benefit MSME sector & home buyers with easier access to affordable credit," tweeted acting Finance Minister Piyush Goyal who is due to present the interim budget on Friday.
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