The focus on infrastructure spending and no additional levy or tax enthused the stock markets on Tuesday. The Sensex and Nifty closed the day with gains of nearly 1.5 per cent to rise by 848 points and 237 points, respectively. Foreign portfolio investors (Fwere net sellers in the cash segment worth a measly ₹21 crore while domestic institutions purchased stock worth ₹1,600 crore, exchange data showed. Index futures worth ₹414 crore were sold by FPIs and they buyers in stock futures worth ₹2,106 crore. “The Bbdget has focussed on boosting overall demand and has invested more in infrastructure. Any sudden and sharp fiscal consolidation steps announced could have throttled the nascent and uneven recovery of the Indian Economy. A 6.9pct fiscal deficit target alleviates that pain. equity markets in India are likely to see 20000 on the nifty and about 65000 in SENSEX by December 2022 on the back of 15-20 per cent earnings growth in FY23. The journey, however, is likely to be very volatile,” said Motilal Oswal, MD, CEO, Motilal Oswal Financial Services. “Capital goods and green energy stocks should be in focus in the next few months as the government has increased spending there. Water conservation is also an important theme. Banks will do well as they are sitting on huge deposits and lending will improve. Also, RBI will hike rates and interest rates will go up due to rising inflation,” said Mehraboon Irani, veteran market investor. The Budget plans to classify data centres and energy storage as infrastructure assets allowing them to access cheap and long-term credit. It could be a big booster for Indian corporate houses including Adani group, Reliance Industries Group and Sunil Mittal as they aggressively plan to invest in these segments. Policy on battery swap will mainly benefit Tata Motors since it is going heavily into the EV motor segment, experts said. Other measures on green energy too will benefit few leading corporate houses and create private sector jobs, experts say. Tata Tele, Sun Pharam, Indusind Bank, L&T, Ultratec Cement and ITC were among the top gainers today. 

Devang Mehta, Head – Equity Advisory, Centrum Wealth said, “The equity markets were cheerful on the announcement of huge outlay of capital expenditure in overall infrastructure development. This Union Budget will also lay the foundation for economic growth through public investments as India emerges from a pandemic induced slump. Hardly any tinkering with tax & avoiding populist measures was also received well by the market participants” 

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