Barometers traded with robust gains in afternoon trade. At 13:31 IST, the barometer index, the S&P BSE Sensex, jumped 1836.11 points or 3.97% to 48,121.88. The Nifty 50 index surged 507.90 points or 3.73% to 14,142.50.
Shares rallied as there was no COVID-19 tax in the Union Budget. The budget offered huge stimulus to infrastructure, capex, healthcare and boosted the credit flow by taking out the toxic assets of the banking system and supported growth on an overall basis.
In broader market, the S&P BSE Mid-Cap index was up 2.19% while the S&P BSE Small-Cap index was up 1.39%.
The market breadth was positive. On the BSE, 1773 shares rose and 1022 shares fell. A total of 177 shares were unchanged.
IndusInd Bank (up 11.47%), ICICI Bank (up 10.96%), SBI (up 8.60%), Bajaj Finserv (up 8.45%) and UltraTech Cement (up 7.40%) were the top Nifty gainers.
UPL (down 4.79%), Dr. Reddy's Laboratories (down 4.06%), Tech Mahindra (down 2.19%), Cipla (down 0.56%) and Wipro (down 0.19%) were the top Nifty losers.
Union Budget 2021:
Finance Minister Nirmala Sithatraman concluded the budget speech for 2021 and tabled the 15th Finance Commission Report before Lok Sabha. The government proposed farm cess of Rs 2.5 per litre on petrol and a cess of Rs 4 per litre on diesel.
The FY21 fiscal deficit at 9.5%. As part of this, the government will borrow another Rs 80,000 crore in the next two months of this year alone. For FY22, the fiscal deficit is pegged at 6.8% of GDP. The gross borrowing will be Rs 12 lakh crore. The total expenditure for FY21 has settled at Rs 34.50 lakh crore. For FY22, total expenditure is pegged at Rs 35 lakh crore.
FM said the government hopes to get to back to fiscal consolidation path by FY26. Fiscal deficit will reach below 4.5% by FY26.
FM laid out a Rs 64,180 crore spending plan for healthcare over the next six years. This will be in addition to National Health Mission.
Government will launch a voluntary scrappage policy for vehicles aimed at reducing vehicular pollution. Vehicles will undergo fitness test after 20 years for personal vehicles, 15 years for commercial vehicle to reduce vehicular pollution.
The FM said the central government aims to garner Rs 1.75 lakh crore through divestments in 2021-22. All divestments announced so far are to be completed in FY22. BPCL, CONCOR, Pawan Hans, Air India divestments to be completed in FY22.
The government has raised the limit for foreign direct investment (FDI) insurance sector to 74% from 49% with safeguards.
Sitharaman said that there is a need to clean up bank books. She announced Rs 20,000 crore in FY22 for recapitalisation of public sector banks.
The government will allow sale of distressed assets to Alternate Investment Funds (AIFs). Further, asset reconstruction and management company will be set up for stressed assets.
The NCLT framework will be strengthened to implement e-courts. Urban Swachh Bharat 2.0 Mission is to be launched at outlay of Rs 1.41 lakh crore over 5 years. Finance minister announced an outlay of Rs 2.87 lakh crore for Jal Jeevan Mission.
Sitharaman said: To further augment road infra, more economic corridors are being planned. FM announced 3,500 km of national highway works in Tamil Nadu at an investment of Rs 1.03 lakh crore, 1,100 km of national highway works in Kerala at an investment of Rs 65,000 crore and 675 km of highway works in West Bengal at a cost of Rs 25,000 crore.
The FM said NHAI and PGCIL will set up INVITs will attract global funds. A national monetizing pipeline for brownfield assets will be set up.
FM said it will allocate Rs 1.1 lakh crore to Indian Railways in FY22. Of total Rs 1.07 lakh crore of provision to Indian Railway in FY22 is for capital expenditure.
Sitharaman also announced the addition of 100 cities to the City Gas Distribution network boosts stocks. Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised, says FM in Budget for 2021-22.
FM said the Government of India has set aside Rs 15,700 crore for small and medium scale enterprises. The Government has also set up credit target of Rs 16.5 lakh crore for FY22. FM said the government will also develop five major fishing harbours to hubs for economic activity.
FM announced reduction in customs duty uniformly to 7.5% on semi, flat and long products of non-alloy, alloy and stainless steel. FM also announced exemption duty on steel scrap till March 2022 To provide relief to copper recyclers, reducing duty on copper scrap from 5% to 2.5%
Further, Sitharaman announced that senior citizen above 75 years of age with only interest income will not have to file income tax return.
FM proposed a new scheme to support augmentation of public bus transport. The government would provide Rs 18,000 crore to support the bus transport scheme.
Sitharaman unveiled a scheme for setting up mega textile parks in the country, as part of the Centre's efforts to position India as a fully integrated, globally competitive manufacturing and exporting hub for the sector.
"A scheme of mega investment textile parks will be launched in addition to the PLI scheme," the FM said. She informed that 7 mega textile parks will be launched in three years as part of the scheme. The mega textile parks will have integrated facilities and quick turnaround time for minimizing transportation losses, eyeing big-ticket investments in the sector.
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