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Hi Everyone,
Finally today we had the budget most of the investor were looking forward to. Indian finance minister Nirmala Sitharaman had promised that this budget will be nothing like as we have seen before and they kept their words.
Investors welcomed the budget with both the hands, pushing the BANKNIFTY to a new record high of 33000 (8.26%).
Market reaction to the Budget
Nifty up by 4.74% to 14281
Sensex up by 5% to 48600
BankNifty up by 8.26% to 33081
Fiscal Deficit
For the current year ending on March 21, 2021 is being pegged at 9.5% of the GDP and for the year 2021-22 the deficit is estimated at 6.8% of the GDP
Highlights of the Budget
| Winners | Losers | |||
|---|---|---|---|---|
| Hospitals | Bonds | |||
| Real Estate | IT Firms | |||
| Construction | Exporters | |||
| Metal Makers | Farmers | |||
| PSU Banks | ||||
| Textiles |
Key Points
- Aims to complete 11000 km of the national highway infrastructure
- 350 billion rupees for Covid-19 vaccine
- Aatmanirbhar Swastha Bharat to be launched with outlay of 641.8 billion over 6 years
- Urban Swachh Bharat scheme will be implemented with an outlay of over 1.4 trillion rupees
- 1.10 trillion rupees for railways and 1.7 trillion rupees for capital expenditure
- 22.17 billion rupees for 42 urban centers to tackle problem of air pollution
- 3.05 trillion rupees for power sector
- Infusion of 200 billion rupees for public sector bank
- 15 billion rupees for promoting digital mode of payment
- Jal Jeevan Mission gets 2.87 trillion rupees
- 200 billion for recapitalization of public sector banks
- Capital gains tax exemption for investment in start-ups. Residency limit for such companies is being reduced to 120 days from 182 days, allowing NRI to incorporate one-person companies in India
- Senior citizens above 75years with only interest income will not have to file income tax returns
Possible Sector Winners
Infrastructure
- L&T
- Dilip Buildcon
- KNR Construction
- ITD Cementation
- Sadbhav Engineering
- IRB Infrastructure
- NCC
- Ashoka Buildcon
Healthcare
- Apollo Hospitals
- Fortis Healthcare
- Narayana Hrudalaya
- Metropolis
- Thyrocare
- Dr Lal Pathlabs
Water Supplies to Household
- Tata Metaliks
- Srikalahasthi Pipes
- Finolex
Jal Jeevan
- VA Tech Wabag
- L&T
- Nagarjuna Construction
Insurance
- ICICI Pru
- SBI Life
- HDFC Life
- ICICI Lombard
Railway
- L&T
- ITD Cementation
- kalpataru Power
- KEC International
- NCC
- ABB
- Siemens
Agriculture Allocation
- UPL
- DHanuka Agritech
- Kaveri Seeds
- RCF
- Chambal Fertilizers
- National Fertilizers
** Do your own research this is just my opinion about possible winners of the budget