PSU divestment, LIC IPO, fiscal deficit: How brokerages read Budget 2021

Budget 2021 marks a clear change in the Modi government's stance from fiscal conservatism to growth orientation, notes analysts at Jefferies

Markets have been on fire after Finance Minister Nirmala Sitharaman presented Budget proposals for fiscal 2021-22 (FY22) with the S&P BSE Sensex surging over 3,300 points in just two sessions. Most brokerages have given a thumbs-up to the proposals, calling them ‘pro-growth’ that will entail a capex-driven revival of Covid-19 impacted Indian economy, even though fiscal deficit and the borrowing programme of the government for the next financial year came in a tad higher-than-expectation.

Divestment of select public sector banks (PSBs) and one general insurance company, initial public offer (IPO) of Life Insurance Corporation (LIC), Air India, tax rationalisation of