2024 Budget

Finance Minister Nirmala Sitharaman presented the interim budget 2024 on Wednesday. While the full budget for the next fiscal 2024-25 will be presented after the general election

·         Budget - Government's target of spending Rs 11.1 lakh crore in capital expenditure for infrastructure building is historic and will put India in a "sweet spot". – Positive for Infra, cement, metal,

·         Budget - The finance minister said that FY24 fiscal deficit is estimated at 5.8% of GDP, below the budged 5.9%. She pegged the FY25 target at 5.1%, with an aim to reduce it to 4.5% by FY26.- Lower Fiscal deficit will be positive for the economy as well as Market.

·         Budget - No tax changes, but nearly 1 crore taxpayers to get relief - No changes to the income tax regimes were announced by Finance Minister Nirmala Sitharaman in the Interim Budget 2024-25, but nearly one crore taxpayers are still likely to benefit. This is because Sitharaman said the government will not pursue the recovery of old and disputed direct taxes up to Rs 25,000 until the financial year 2009-10. Additionally, direct tax demands up to Rs 10,000 for the financial years 2010-11 to 2014-15 will be withdrawn.

·         Budget - Positive Surprise on Borrowings FY25 gross market borrowings have been pegged at Rs 14.13 lakh crore, lower than a number of Rs 15 lakh crore that economists had expected. Net borrowings seen at Rs 11.75 lakh crore. – positive for PSU Banks

·         Budget - Spend Less on Fertilizer Subsidy as World Prices Soften – Government will cut its fertilizer subsidy in the new fiscal year from April 1 as global prices weaken and the government looks to prune its budget deficit. Government will slash the allocation to Rs1.64 trillion in 2024-25 compares with a revised subsidy of Rs1.89 trillion for the current fiscal year.

·         Budget - Govt to formulate plan to make India self-reliant in edible oils; launch scheme for dairy sector - The government will formulate a strategy to make India self-reliant in edible oils by boosting domestic output of oilseeds and launch a comprehensive programmed to support dairy farmers – positive for Diary stocks and editable oil stocks – Patanjali Food, Godrej Aggravate

·         Budget - Green fuel gets boost, FM presents scheme for biomanufacturing - Announced a new scheme for converting biomass into Compressed Biogas (CBG) and phased mandatory blending of CBG with natural gas to be used as fuel for vehicles and domestic supplies. – expects positive for Kotayk

·         Budget - New Innovation Fund The government plans to set up a Rs 1 lakh crore corpus to back innovation. This includes 50-year interest-free loan, long-term financing or refinancing with long tenures with low or nil interest rates. The move is aimed at encouraging the private sector to scale up research and innovations "significantly in sunrise domains", Sitharaman said.

·         Budget - Housing Stays In Spotlight The government plans to launch a scheme for deserving sections of middle class living in rented houses or slums to build their own houses. Details are awaited. The government also aims to make 2 crore houses in the next five years under the PM Awas Yojana-Grameen and is close to achieving the 3-crore target. – Positive housing Finance stocks – Hudco, Can Finance Home, PNB Housing

·         Budget – Railways - Railway 40,000 rail bogeys to be converted to Vande Bharat standards. Three railway corridors programmed -- for energy, mineral and cement, port connectivity, and high traffic density -- seeking to “accelerate” economic growth by bolstering the national transporter’s development.

–         positive for rail stocks

·         Budget -Energy - Rooftop solar project to give 1 crore households 300 units of free electricity per month. Coal gasification and liquefaction of 100 million tone to be set up by 2030. New scheme of bio manufacturing, bio foundry to be launched. Blending of CNG and biogas will be mandated in a phased manner. - Positive for Solar Energy and EV stocks

·         Budget – Govt. hikes defense expenditure by 4% as India seeks to fortify borders - Finance Minister Nirmala Sitharaman has raised expenditure on defense to Rs 6.25 lakh crore from Rs 5.94 lakh crore in her previous budget – positive for defense stock.