The Nifty Auto index closed 0.28 per cent up at 25321.7.
Ashish Chauhan thinks the hikes in STT and capital gains tax are lower than what most experts had expected and once people realise that the government wants people to invest more in the markets and capital formation – not in the speculative part, but in the investment part – they will start investing in the stock market.
India's Finance Minister, Nirmala Sitharaman, has reiterated the need to widen the country's tax net, both directly and indirectly. She also mentioned the need for non-tax revenue mobilizations to improve Public Sector Undertakings (PSUs) dividends, which have seen high valuations and increased performance. Sitharaman also discussed asset monetisation, which involves maximizing the use of unutilised assets like stadiums or land available with PSUs for better purposes.
Society of Indian Automobile Manufacturers (SIAM) President Vinod Aggarwal said the Indian automobile industry welcomes the continued emphasis on economic growth with several announcements especially the strong fiscal support for infrastructure in the next five years. Meanwhile, Retailers Association of India (RAI) CEO Kumar Rajagopalan said that the government has tried to strike a balance between populist and policy measures.
The Nifty Realty index became the top sectoral loser today, falling by 2.3% as 9 out of 10 stocks ended the day in red, with Lodha being the top loser of the sector, dropping nearly 5%.
Finance Minister Nirmala Sitharaman announced the government's plan to create an 'Economic Policy Framework' in the Budget Speech, focusing on facilitating employment opportunities and sustaining high growth. The framework aims to improve productivity of factors of production, incentivise reforms, promote competitive federalism, and collaborate with states for development. The Budget also emphasises nine priorities, including agriculture, employment, urban development, and innovation, for generating opportunities and driving economic growth.
The 2024-25 Budget allocates over Rs 200 crore for UPSC examinations and selection processes. The Commission conducts annual civil services exams in three stages. Recent scrutiny on a probationary IAS officer's case has brought attention to the UPSC's operations.
By the way, MSMEs also the credit guarantee scheme as also the Mudra loan provision, which is the measures taken there, should also help the manufacturing sector. One important thing which I also mentioned which is that there are really no big bang things that you can see in the budget, but the FM has really focused on the fundamentals and on the macroeconomic stability for both the markets as well as the overall fiscal consolidation
The Union Budget 2024 has measures for providing support to poor, women, youth and farmers. There is a provision of Rs 1.5 lakh crore towards education, employment and skilling. These measures augur well for the FMCG companies as they may result in more disposable income.
Budget 2024 proposes to bring back Vivaad se Vishwas Scheme- a direct tax dispute resolving scheme. Earlier, this scheme was introduced in 2020 which got a very encouraging response from the taxpayers and also resulted in garnering substantial revenue for the Government.
FMCG major Hindustan Unilever (HUL) reported a net profit of Rs 2,538 crore for the quarter ending June 30, 2024, which closely matched the Street estimate of Rs 2,541 crore. This represents a 3% year-on-year growth compared to the corresponding quarter last year.
The Union Budget for 2024-25 presented by Finance Minister Nirmala Sitharaman has been hailed by the Gem & Jewellery Export Promotion Council (GJEPC) for its significant measures aimed at bolstering India's position as a global leader in the diamond and jewellery sectors. The abolition of the equalisation levy on sales of rough diamonds and the introduction of safe harbour tax rules are expected to streamline operations and attract foreign mining companies to trade directly with Indian manufacturers.
The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has announced significant infrastructure projects for Bihar and Andhra Pradesh. Despite rejecting Bihar's demand for Special Category Status, the government has allocated ₹2,600 crore for expressways and a new power plant. Andhra Pradesh is set to receive ₹15,000 crore for capital development. These measures reflect the BJP's reliance on key allies in recent elections.
The Nifty Realty index closed 2.29 per cent down at 1065.95.
Budget 2024 announcements for workers: The government on Tuesday announced 3 schemes to boost employment through retirement fund body EPFO for new entrants in the organised sector.
Allocation for semiconductor and display manufacturing increased to Rs 6,903 crore. The government has also allocated Rs 551.75 crore for IndiaAI mission to boost the country's Artificial Intelligence infrastructure.
Finance minister proposes 5% increase in customs duty for PCBAs, likely leading to higher network rollout costs. Vi expected to be most affected. Local telecom gear makers optimistic about boost in domestic production. Overall network costs may rise by 4-5%.
MSMEs say the move is a welcome step but clarity is required to understand how it will be rolled out given that the credit requirements of small and medium enterprises may not be that big.
Tata Advanced Systems Ltd and Airbus Helicopters have struck a deal to establish a final assembly line in India for single-engine H125 choppers, marking a significant development for the country's aerospace sector. This partnership, announced at the Farnborough International Airshow, will see the private sector setting up a helicopter assembly facility for the first time in India. The production is set to commence in 2026 for India and neighboring countries.
The Nifty IT index closed 0.68 per cent up at 40044.7.
Real estate industry leaders have praised the Union Budget for its focus on urbanisation, infrastructure development, and women's empowerment. CREDAI West Bengal's Sushil Mohta lauded the goal to increase real estate's GDP contribution to 13% by 2025. The budget includes allocations for urban housing affordability, rental housing for industrial workers, and regulatory reforms.
Leading the Sensex pack, Titan and ITC saw significant gains, rising 6.6% and 5.5%, respectively. Adani Ports, NTPC, Infosys, and HCL Tech also closed higher. However, L&T, Bajaj Finance, SBI, Axis Bank, HDFC Bank, and Asian Paints faced declines. The market capitalisation of all listed companies on BSE declined by Rs 1.89 lakh crore to Rs 446.43 lakh crore.
TCS on luxury goods, Budget 2024: The budget documents have proposed the levying of TCS (tax collected at source) on notified luxury goods from January 1, 2025. The list of luxury goods that will attract TCS will be notified by the central government. Currently, TCS is applicable on foreign remittances, foreign travel, motor vehicle etc.
The attack by opposition parties came after Finance Minister Nirmala Sitharaman presented the budget in the Lok Sabha. Sitharaman announced income tax relief for the middle class, a Rs 2 lakh crore outlay for job creation schemes over the next five years and a spending splurge for states-run by her party's new coalition partners. Leader of Opposition in the Lok Sabha Rahul Gandhi dubbed the Union Budget a "kursi bachao budget" and claimed it makes "hollow promises" to BJP allies at the cost of other states.
Experts in the investment management industry and tax and legal professionals suggest that the introduction of variable capital companies (VCC) in India as announced in the union budget. This could boost private equity and venture capital investments, with potential to attract more fund managers and reduce compliance requirements. It will provide greater flexibility for pooling funds and accommodating investors with different needs, addressing limitations of current trust structures.
