Budget 2022 expectations LIVE: Jobs, tax reduction amid pandemic, and more

Budget 2022 LIVE: With Assembly elections in four states and one Union Territory getting closer, the Centre could go for some populist measures

9:44 AM

India reports over 235,532 Covid cases, 871 fatalities

With 235,532 people testing positive for the coronavirus infection in a day, India's total tally of cases increased to over 40.8 million, according to the Union Health Ministry data updated on Saturday.

The death toll has climbed to 493,198 with 871 fatalities reported during the 24-hour period, the data updated at 8 am showed.

The active cases decreased by 101,278 to reach 2,004,333 -- 4.91 per cent of the total infections -- while the country's recovery rate stands at 93.89 per cent, the ministry said.

The daily positivity rate was recorded at 13.39 per cent, while the weekly positivity rate was 16.89 per cent, according to the health ministry.

9:34 AM

Budget 2022: Cement sector may shine with infra announcements, say analysts

Schemes to develop rural infrastructure and boost incomes, coupled with an extension of real estate incentives, would be key triggers for the sector in the Budget. A higher allocation to ongoing schemes targeted at the rural segment — be it the Pradhan Mantri Gram Sadak Yojana for the roads sector, the Pradhan Mantri Awas Yojana for housing, or the Mahatma Gandhi National Rural Employment Guarantee Act for rural employment — is expected to drive demand for the cement sector. As will allocating more funds to highways, expressways and other infrastructure projects. Read on...

8:40 AM

Budget 2022: Sops to boost investment in real estate sector, say brokerages

There are multiple expectations from firms in the real estate sector, the second largest employer after agriculture. Key among them are raising the exemption limit under Section 24 (b) of the Income Tax Act for interest on housing loans taken for self-occupied property from the current Rs 2 lakh to Rs 5 lakh to improve liquidity.

 

Brokerages also expect an increase in the safe harbour limit under section 50C of the I-T Act for home buyers purchasing a property below the circle rate by up to 20 per cent beyond June 30 for primary sale of residential units of value up to Rs 2 crore. This will help builders reduce their unsold ready-to-move inventory, especially Lodha (Macrotech Developers) and Oberoi Realty, as they are sitting on the most such units, they add. Read on...

8:08 AM

Budget 2022-23: Clarity on PSB privatisation is expected, say brokerages

Some clarity on the privatisation of two public sector banks, announced in last year’s Budget, is expected. Brokerages feel it is highly unlikely that the government will infuse capital in these banks, implying that these units will have to increasingly rely on market borrowings to meet funding requirements.

 

The government is also expected to extend the emergency credit line guarantee scheme, which has helped the MSME sector get greater access to credit during Covid. It may also provide some tax rebate to the sector. Read on...

8:08 AM

Budget 2022-23 Expectations: FPIs bat for equal taxation on dividends and buybacks

This year’s Union Budget must consider bringing a parity in tax treatment of dividends and buybacks, said market players.

 

The Budget in 2020 did away with the dividend distribution tax (DDT) in the hands of the company and instead decreed that tax be deducted at source (TDS) at 10 per cent on dividend income paid by a company to shareholders if the amount exceeded Rs 5,000 a year. This made dividends taxable in the hands of investors.

 

Indian companies, however, are still subject to 20 per cent tax (plus surcharge and cess) on share buybacks. READ ON...

7:53 AM

Budget Expecations 2022: Infra to real estate, what brokerages predict for key sectors

With spending on Covid-related measures and subsidies expected to moderate in FY23, this year’s Budget is likely to focus on infrastructure, with higher allocation to roads, railways and water segments. The Budget could also expand the scope of the PLI scheme, extend tax cuts for new manufacturing units and rationalise import duties. The services space, one of the sectors hit hardest by Covid, may get some support in the Budget. Any boost to consumption or a relief in taxes will be positive for stocks across the consumer and consumer discretionary segments. Edelweiss Research has a defensive bias in its portfolio and expects higher rural allocation to support consumption. The key sectors to look out for will be infra, services (travel), auto, cement, metals, real estate, financials, and capital goods. READ ON...

7:45 AM

Budget Expecations 2022: Brokerages expect duty cut on metals to spur margins

Reduction in import duty on raw materials and finished products of steel, and higher allocation under infrastructure and housing for all schemes in the Budget could augur well for the domestic industry.

 

Additionally, the government will have to carry out a balancing act on steel pricing to protect the MSME sector, which suffered significantly in early 2021, brokerages said.

 

Public capex has been relatively soft over the past few years and is expected to pick up from FY23. Construction and infrastructure sectors form 60 per cent of domestic steel demand. Read on...

7:42 AM

Budget 2022 Expectations: Rural stimulus need of the hour amid Covid-19 pandemic

Consumption, which was impacted during the pandemic, is expected to improve as the rate of vaccinations rises to cover the entirety of the country’s eligible population. Corporate taxation, which was reduced in 2019, is also expected to remain untouched in FY23.

 

Among key measures, the Budget is expected to hike allocation to the Mahatma Gandhi National Rural Employment Guarantee Scheme and other agricultural schemes, which will increase consumption. Read on...