Budget 2024: 7 Key Takeaways For Stock Market Investors From Nirmala Sitharaman's Speech

Beyond announcing major numbers or reforms Finance Minister Nirmala Sitharaman in her Budget 2024 speech. Outlined a comprehensive plan for the future without announcing populist schemes amid upcoming general elections.
Budget 2024: 7 Key Takeaways For Stock Market Investors From Nirmala Sitharaman Speech

Budget 2024: 7 Key Takeaways For Stock Market Investors From Nirmala Sitharaman Speech (image source: Getty Images)

Sensex and Nifty on budget day traded flat as Finance Minister Nirmala Sitharaman left without making any major ground-breaking statements to trigger the market. However, today's market session on February 2 saw a gap-up opening. Both the benchmark indices saw nearly 0.50 per cent increase.
On Thursday, soon after the 60-minute budget speech by Nirmala Sitharaman the stock market witnessed neither unpleasant lows nor sharp advancements.
Beyond not announcing major numbers or reforms Finance Minister Nirmala Sitharaman in her Budget 2024 speech, outlined a comprehensive plan for the future without populist schemes even when the general elections are round the corner. Income tax Slabs, tax structures and tax rates remained unchanged despite the growth in tax collections especially from direct taxes. She further set fiscal deficit target of 5.1 per cent for FY24-25, which is currently at 5.8 per cent.
"The biggest strength of this budget is the fact that the fiscal deficit is set @5.1 per cnet which is significantly lower than expected. Also maintaining the focus on infrastructure development and capex is a positive factor. Plan to focus on the Rural housing program will have multiple constructive effects on the economy as many ancillary industries are linked to housing. Another positive factor is the allocation of 1 lakh cr for R&D and innovation. Overall, this demonstrates a continued focus on fiscal consolidation and Macro-economic development," said Mini Nair, Chief Financial Officer, Geojit Financial Services.

Here Are 7 Key Takeaways From Budget 2024 To Stock Market Investors

1) Capex Allocation
Nirmala Sitharaman has amplified the capital expenditure outlay by 11.1 per cent, reaching Rs 11.11 lakh crore, equivalent to 3.4 per cnet of the GDP. This substantial increase to invigorate economic activity aligns with the long-term vision of Viksit Bharat.
“Higher capital expenditure, which envisages 3.4 per cnet of GDP, railway modernisation and economic corridors under the PM Gati Sakti Scheme, deeptech technology for the defence sector, skill development, and air connectivity revolution by the Udan scheme will also help the country achieve its ambitious growth targets. In essence, the Interim Budget has two major themes: rural push and higher infrastructure investment,”said Aditya Damani, Founder and CEO, Credit Fai.
2) Push For EV And Renewable Energy Infra
A significant boon for electric vehicle (EV) and renewable green energies. The government has allotted Rs. 8,500 crore and Rs.600 crore for solar and national green hydrogen, respectively, to emphasise the usage of renewable energy. Further, the adoption of e-buses for public transport and strengthening e-vehicle ecosystems through backing infrastructure providers for production and charging.
3) Rooftop Solar Expansion
Under the Suryodaya Yojana, the Budget envisions enabling 1 crore households to embrace rooftop solarisation, providing up to 300 units of free electricity every month. This move not only promotes sustainable energy but also translates into substantial monthly savings ranging from Rs 15,000 to Rs 18,000 for households.
“The government’s thrust on rooftop solar, green energy research, Viability Gap Funding for wind energy projects, bio fuels, bio manufacturing, food processing industries, procurement and processing of agri-produces, MSMEs, and financial assistance to women Self-Help Groups will revitalize the country’s clean energy initiatives and unleash stellar economic growth in rural economy,” said Aditya Damani, Founder and CEO, Credit Fair.
4) Vande Bharath Coach Conversion
Finance Minister during her budget speech announced the conversion of 40,000 more rail bogies into Vande Bharat coaches. This move will enhance the efficiency and modernisation of the railway sector and faster passenger moments.
4) Lakhpati Didi Scheme
The Lakhpati Didi scheme aims to provide financial support to rural women. With a financial injection of Rs 1 lakh per household for the 1 crore recipients, this initiative holds the potential to significantly uplift the economic status of rural women.
“The measures such as increased financial assistance to women SHGs, more Mudra loans to women, extension of Ayushman Bharat cover to anganwadi and asha workers, joint ownership of homes under PM Avas Yojana, and small-ticket loans for street vendors will rejuvenate rural economy, which will have a positive bearing on the business of NBFCs and microfine,” said Umesh Mohanan, ED & CEO, Indel Money.
5)Money For Tech-Ideas
The allocation of a corpus of rupees one lakh crore, coupled with a fifty-year interest-free loan, to promote research and innovation in sunrise domains is a welcome move. This initiative incentivizes private sector participation in research and innovation.
"The revised fiscal deficit for FY 24 at 5.8%, lower than the earlier estimate, demonstrates prudent financial management by the government, fostering stability and confidence in the economy. This, coupled with the government's focus on leveraging new age technologies and data to drive economic growth, underscores India's commitment to embracing innovation and fostering a conducive environment for technological advancement’’ said Sajid Malik, Chairman & Managing Director of Genesys International.
6)Housing Boost
The ongoing Pradhan Mantri Awas Yojana (Grameen) is nearing its 3 crore houses target, with an additional goal of constructing 2 crore houses set for the next five years.The government also planning to launch the "Housing for Middle Class" scheme, which will incentivise middle-class individuals to either purchase or construct their own homes.
Havells India chairman and managing director Anil Rai Gupta said to ET that the housing schemes will open up huge opportunities for electrical and appliance sales, improving demand in the mid-to-long term, while the solarisation scheme will create opportunities to sell solar appliances.
" This is very good news for the economy and consequently for the market. The boost to housing is another important proposal from the market perspective since this will benefit industries like cement, steel and all construction related segments,." said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
7) Tourism Development Plan
During the interim budget presentation, Nirmala Sitharaman said that states will be encouraged to undertake the comprehensive development of iconic tourist centers. These centers will be branded and marketed globally, and long-term, interest-free loans will be provided to states to facilitate this initiative.
“In the tourism sector, the focus on comprehensive development of iconic tourist centers, the enhancement of tourism infrastructure and , the investment in spiritual tourism reflects the government's commitment to leveraging India's diverse cultural heritage and economic strength to attract global visitors. I believe that these commendable steps in the technology and tourism sector shall foster inclusive growth and work towards positioning India as a global leader within the two sectors,” said Sajid Malik, Chairman & Managing Director of Genesys International.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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