The outlook is a spurt at start. Indices will look to scale to new highs and attention will be on Nifty attempting to hit the 9,000 mark.
The big budget event is now out of the way. It may not have been big bang on reforms but it finance minister has delivered a practical budget that addresses many crucial areas topping the government agenda. Foreign investors would be pleased with deferment of GAAR by 2 years, merging of FIIs and FDI limits, resolution of domicile issue, removal of MAT etc. There are several incentives to boost domestic savings and direct it towards financial instruments for productive use. More notably, there are steps to release money blocked in gold. Those who missed participating on Saturday, especially FIIs will get into action today.
The outlook is a spurt at start. Indices will look to scale to new highs and attention will be on Nifty attempting to hit the 9,000 mark. Just last year, in Feb-end, the Nifty was below the 6,300 levels and a year later it has galloped over 40%. Fuel price hike will also have an impact on OMCs. Infrastructure Output figures and Fiscal Deficit numbers will also be eyed today.
Global indices are lackluster with US indices closing lower on Friday. Dow fell half a percent while S&P ended flat. Nasdaq too dropped half a percent. Asian indices are mixed with Japan’s Nikkei flat while Hong Kong’s Hang Seng gaining 0.4%. China’s Shanghai is also slightly lower.
On the domestic front, the FM has indeed boosted corporate and individual sentiment with his resolve to move towards a 25% tax level in next four years and the additional deductions for individual tax payers for health cover premium payments, pension contribution and transport allowance.
No budget can please everybody or leave no room for criticism. If one has to list disappointments, there are a few, such as failure to provide a convincing solution to capital needs of public sector banks or direct boost to private sector for new capex.
Finance Minister Arun Jaitley in his Budget Speech in Lok Sabha said that the Indian Economy has turned around dramatically in the last nine months with the real GDP growth expected to accelerate to 7.4% making India the fastest growing large economy in the world.CPI inflation is expected to remain at close to 5% by the end of the year which will allow further easing of monetary policy. Jaitley said a Monetary Policy Framework Agreement has been concluded with the RBI to keep inflation below 6%.
FM proposed rationalization of various tax exemptions and incentives to reduce tax disputes and improve tax administration. He said, with a view to encourage savings and to promote health care among individual tax payers, it is proposed to increase the limit of reduction of health insurance premium from Rs 15,000 to Rs 25,000 and for senior citizen this limit is increase from Rs 20,000 to Rs 30,000.
The Budget also announced a slew of measures to stamp out black money. The Finance Minister proposed to defer the applicability of the General Anti Avoidance Rule (GAAR) by two years. Investments made up to 31.03.2017 shall not be subjected to GAAR.
Finance Minister also announced Rs 69,500 crore plan to sell stakes in government companies. Out of the total budgeted proceeds, Rs 41,000 crore is estimated to come from minority stake sale in PSUs, and the remaining Rs 28,500 crore is projected to come from strategic sale in both profit and loss-making companies, says report. The revised estimates pegged the disinvestment receipts from minority stake sale in PSUs at Rs 26,353 crore.
Petrol prices were hiked by Rs 3.18 per litre while diesel by Rs 3.09 per litre. This was the second increase in two weeks. In Delhi, diesel will cost Rs 3.09 more at Rs 49.71 a litre from Sunday, while the price of petrol will increased Rs 3.18 per litre to Rs 60.49.
The Prime Minister, Narendra Modi, called upon the Indian IT Industry to focus on meeting the global challenge of cyber-security. Stating that the entire world is concerned about this issue, the Prime Minister said Indian IT professionals could do a lot for cyber-safety of digital assets across the world.
Shares of cigarettes manufacturing companies have dealt a severe blow following a steep hike in excise proposed in the Budget. According to the Union Budget 2015-16 proposals, the Finance minister has proposed to hike excise duty on cigarettes to 25 per cent for under 65 mm category, and 15 per cent for other categories.
The proposed merger of FMC with Sebi to create a unified markets regulator has sounded a death knell for the illicit 'dabba trading', estimated to have a turnover of up to Rs one lakh crore a day, says a report.
The big budget event is now out of the way. It may not have been big bang on reforms but it finance minister has delivered a practical budget that addresses many crucial areas topping the government agenda. Foreign investors would be pleased with deferment of GAAR by 2 years, merging of FIIs and FDI limits, resolution of domicile issue, removal of MAT etc. There are several incentives to boost domestic savings and direct it towards financial instruments for productive use. More notably, there are steps to release money blocked in gold. Those who missed participating on Saturday, especially FIIs will get into action today.
The outlook is a spurt at start. Indices will look to scale to new highs and attention will be on Nifty attempting to hit the 9,000 mark. Just last year, in Feb-end, the Nifty was below the 6,300 levels and a year later it has galloped over 40%. Fuel price hike will also have an impact on OMCs. Infrastructure Output figures and Fiscal Deficit numbers will also be eyed today.
Global indices are lackluster with US indices closing lower on Friday. Dow fell half a percent while S&P ended flat. Nasdaq too dropped half a percent. Asian indices are mixed with Japan’s Nikkei flat while Hong Kong’s Hang Seng gaining 0.4%. China’s Shanghai is also slightly lower.
On the domestic front, the FM has indeed boosted corporate and individual sentiment with his resolve to move towards a 25% tax level in next four years and the additional deductions for individual tax payers for health cover premium payments, pension contribution and transport allowance.
No budget can please everybody or leave no room for criticism. If one has to list disappointments, there are a few, such as failure to provide a convincing solution to capital needs of public sector banks or direct boost to private sector for new capex.
Finance Minister Arun Jaitley in his Budget Speech in Lok Sabha said that the Indian Economy has turned around dramatically in the last nine months with the real GDP growth expected to accelerate to 7.4% making India the fastest growing large economy in the world.CPI inflation is expected to remain at close to 5% by the end of the year which will allow further easing of monetary policy. Jaitley said a Monetary Policy Framework Agreement has been concluded with the RBI to keep inflation below 6%.
FM proposed rationalization of various tax exemptions and incentives to reduce tax disputes and improve tax administration. He said, with a view to encourage savings and to promote health care among individual tax payers, it is proposed to increase the limit of reduction of health insurance premium from Rs 15,000 to Rs 25,000 and for senior citizen this limit is increase from Rs 20,000 to Rs 30,000.
The Budget also announced a slew of measures to stamp out black money. The Finance Minister proposed to defer the applicability of the General Anti Avoidance Rule (GAAR) by two years. Investments made up to 31.03.2017 shall not be subjected to GAAR.
Finance Minister also announced Rs 69,500 crore plan to sell stakes in government companies. Out of the total budgeted proceeds, Rs 41,000 crore is estimated to come from minority stake sale in PSUs, and the remaining Rs 28,500 crore is projected to come from strategic sale in both profit and loss-making companies, says report. The revised estimates pegged the disinvestment receipts from minority stake sale in PSUs at Rs 26,353 crore.
Petrol prices were hiked by Rs 3.18 per litre while diesel by Rs 3.09 per litre. This was the second increase in two weeks. In Delhi, diesel will cost Rs 3.09 more at Rs 49.71 a litre from Sunday, while the price of petrol will increased Rs 3.18 per litre to Rs 60.49.
The Prime Minister, Narendra Modi, called upon the Indian IT Industry to focus on meeting the global challenge of cyber-security. Stating that the entire world is concerned about this issue, the Prime Minister said Indian IT professionals could do a lot for cyber-safety of digital assets across the world.
Shares of cigarettes manufacturing companies have dealt a severe blow following a steep hike in excise proposed in the Budget. According to the Union Budget 2015-16 proposals, the Finance minister has proposed to hike excise duty on cigarettes to 25 per cent for under 65 mm category, and 15 per cent for other categories.
The proposed merger of FMC with Sebi to create a unified markets regulator has sounded a death knell for the illicit 'dabba trading', estimated to have a turnover of up to Rs one lakh crore a day, says a report.
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