Sensex ends 158 pts up on Budget day after 2000 pts-swing, Nifty near 17600

CLOSING BELL: Broader markets were unable to recover from the intra-day lows with BSE Midcap and Smallcap indices dropping up to 1 per cent

1:25 PM

Budget delivers a big boost for consumption-related stocks: Analysts

The Budget has put more money in the hands of the people through relief from Income Tax, which is a very positive step, analysts said. READ MORE

1:17 PM

Comment :: Tax tweak to have multiplier effect

The budget has ensured, the fiscal impulse is maximized to improve potential growth, while signalling adherence to medium-term fiscal sustainability. This requires continued financial sector reforms, better resource allocation. Expenditure focus has been on rural, welfare, infrastructure, PLIs, and energy transition. Capex spend has picked up significantly to 3.3% of GDP and is almost double of Pre-Pandemic prints. This especially implies larger fiscal multiplier on employment and growth and will support crowding in of still-lacking private capex.

 

The tax benefits have been tweaked to encourage individuals to move towards new tax regime, and to provide relief to middle class, while maximum marginal rate has also been reduced to 39% from 42.7% to give relief to the highest income strata. While the government is foregoing effective revenue of Rs350bn, this could have a consumption multiplier effect albeit at the margin, in the economy that’s seeing fading consumption growth.

Views by: Madhavi Arora, Lead Economist - Emkay Global Financial Services 

1:05 PM

Budget 2023: FY24 fertiliser subsidy pegged at Rs 1.75 lakh crore

>> Fertiliser subsidy: Rs 1.75 lakh crore estimated for FY24. Revised estimate for FY23 increased to Rs 2.25 lakh crore

>> Food subsidy for FY24 pegged at Rs 1.97 lakh crore. Revised estimate for FY23 increased to Rs 2.87 lakh crore

1:00 PM

Expert comment: As the disposable income increases, FMCG sector gets a shot in the arm

>> The government’s relief on personal income tax by providing rebate upto Rs.7 lakh and making changes in the slab rate under the new income-tax regime comes as a major boost to the Indian markets. The FM did not tinker with the capital gains which has cheered the markets.

 

>> As the disposable income increases, FMCG sector gets a shot in the arm which are already battling inflation. BFSI sector also stands to gain as deposits and investments in insurance, mutual funds rise.

Views expressed by Sanjay Moorjani, Research Analyst, SAMCO Securities

12:58 PM

Budget Impact: Insurance stocks slip, decline up to 4%

Budget 2023 proposed to tax on Insurance premium payment above Rs 5 lakh per annum.

12:56 PM

Expert comment: Fiscal deficit estimated at 5.9% of GDP meets street expectations

>> In keeping with its focus on inclusive growth, the Union Budget has hiked outlays on Infrastructure and Agriculture which in our view would have a force multiplier impact on the economy.

 

>> Increased Outlay towards Energy Transition, Railways, Affordable Housing & Urban Infrastructure indicates GOI resolve on enablers for growth.

 

>> Fiscal Deficit estimated at 5.9% of GDP meets street expectations on fiscal prudence.

 

>> The Budget has put more money in the hands of the people through relief from Income Tax which to our mind is a very positive step.

 

>> Budget leaving Taxation on Capital Gains untouched is a big positive.

 

>> We rate the Union Budget 9/10

Views expressed by S Ranganathan, Head of Research at LKP Securities

12:51 PM

Budget 2023: Govt pegs FY24 divestment target at Rs 61,000 crore

FY23 revised divestment target reduced to Rs 60,000 cr vs Rs 65,000 cr earlier

12:45 PM

Expert comment: Lower fiscal deficit target for FY24 will cool bond markets

Capex outlay increased by 33% to Rs 10 lakh crore for FY24. At this level, public capex will be 3.3% of GDP. Equity indices are in the green so far. But bond markets are getting jittery as expenditure looks elevated so far. 10-year bond yield has climbed 2 basis points to 7.38% since the FM announced the hike in capex outlay. A lower fiscal deficit will cool bond markets. 

Views expressed by Satish Menon, Executive Director at Geojit Financial Services

12:42 PM

Expert comment: Tata Power, Adani Group to benefit from govt's Rs 19,700 cr hydrogen mission

The FM allocated Rs 19,700 crore for the National Hydrogen mission. The government also announced a target to reach the production capacity of 5 Million Metric Tonnes (MMTA) by 2030. This is in line with India’s achievement of net zero targets by 2070 also reducing India’s imports of fossil fuels. Reliance Industries, Tata Power, Adani group, L&T, BPCL, HPCL and NTPC would benefit from the green hydrogen mission.

Views expressed by Sanjay Moorjani, Research Analyst, SAMCO Securities 

12:42 PM

MARKET CHECK: Sensex zooms 1,000 points as populist Budget cheers D-Street

12:39 PM

Expert comment: Tax benefits to drive higher consumption, says Deven R Choksey

> Growth & Employment Oriented 

> Tax benefits to result in higher personal and industrial consumption | Rs 35,000 crore savings for tax payers 

> Rs 10 lakh crore allocations to Infrastructure 

> No changes in capital gain taxes 

> No negatives is excellent news 

 

12:31 PM

Budget 2023 LIVE: 5 tax slabs announced in new regime

>> Nil tax for salaries up to Rs 3 lakh
>> 5% tax for salaries in the range of Rs 3-6 lakh
>> 10% tax for salaries in the range of Rs 6-9 lakh
>> 15% tax for salaries in the range of Rs 9-12 lakh
>> 20% tax for salaries in the range of Rs 12-15 lakh
>> 30% tax for salaries above Rs 15 lakh

12:30 PM

ALERT :: FM concludes Budget presentation

12:28 PM

Market reacts:: Sensex at day's high, up 800 points

12:27 PM

Budget 2023 LIVE: FM proposes to recast income tax slabs under New tax regime

>> Number of slabs reduced to 5 and tax exemption limit raised by Rs 3 lakhs.