With a focus on job creation, finance minister Nirmala Sitharaman announced a slew of measures to push infrastructure spending. However, the highlight was the lack of big bang tax sops and introduction of taxation on cryptos.
Why was it so important for the Karnataka government to hold Ganesh Chaturthi puja in an Idgah maidan somewhere in the state? Was it something to do with the fact that assembly elections are around the corner?
With the tide of majoritarian appeasement, fuelled by the ruling political establishment, there are efforts now to even exempt the Gyanvapi mosque-Shringar Gauri dispute in Varanasi from the ambit of the Places of Worship (Special Provisions) Act, 1991.
If the Ram Temple movement established the saffron outfit in the Hindi belt, the Hubballi campaign catapulted it to power in the state
PFI came into being in response to violence against Muslims. Political silence on it only helped the fundamentalist outfit grow in coastal Karnataka
The 1990s decade was dominated by the Ram Janmabhoomi-Babri Masjid row. Now, the Gyanvapi mosque row has added another chapter to the country’s history of disputes over religious structures and the spaces they occupy.
Finance Minister Nirmala Sitharaman on Tuesday announced Gati Shakti master plan for infrastructure development, hike in capital expenditure, expansion of national highway network by 25,000 kilometers and a master plan for expressways to boost economic growth for next financial year. Sitharaman also announced that the Reserve Bank of India will launch digital currency based on blockchain technology.
“Extension of capital gains exemption for investments in start-ups by a year comes as a relief and will boost investor sentiment towards start-ups in India. The inclusion of 30 per cent tax would help to regulate the cryptocurrency sector in India however it could also result in a decline in retail investor interest and further clarity on the same could help boost investor confidence. Bringing digital assets into the tax regime is a welcome move from the government and it is important to see how the implementation will be done,” Mohamad Faraz Of Upsparks.
“We are pleased with the budget announcement for our sector, particularly the reduction of customs duty on cut and polished diamonds from 7.5 per cent to 5 per cent. This will spur greater demand for natural and real diamonds and also give an opportunity to diamond companies to boost operations and, in turn, contribute to greater economic growth for the nation. The proposal to create a simplified regulatory framework to enable the use of e-commerce channels to export jewellery will help us seamlessly take forward our initiative to promote trade through the digital mode. This will bring down transaction costs and save time while enabling us to reach out and expand our customer base globally. Overall, we hope that the gems and jewellery sector continues to plays a pivotal role in the growth of the economy ” said Sachin Jain, Managing Director, De Beers India.
Belying expectations, Finance Minister Nirmala Sitharaman did not tinker with the personal income tax rates in the Budget for 2022-23.
The minister also did not raise standard deduction, which was widely anticipated in view of elevated inflation levels and impact of the pandemic on the middle class. The standard deduction currently stands at Rs 50,000. There was no change income tax slabs in the personal income tax category in the Budget unveiled on Tuesday. The corporate tax rate too was kept at the same level. However, concessional rate of 15 per cent has been extended by one year for newly incorporated manufacturing units.
Expectations of tax sops for the middle class was high ahead of Budget 2022, given the need to push consumption in the race to re-capture growth in a pandemic-hit economy.
The Indian equity benchmarks surged on Tuesday as investor sentiment got a boost after the government expanded its capital expenditure plan for next financial year and laid out plan to increase spending on infrastructure to affordable housing to put growth on a firmer footing as the economy recovers from the pandemic. The Sensex rose as much as 1,018 points and Nifty 50 index touched an intraday high of 17,622.
The Sensex advanced 848 points to close at 58,863 and Nifty 50 index jumped 237 points or 1.4 per cent to settle at 17,577.
A large number of commonly used items, including headphones, earphones, loudspeakers, smart meters, imitation jewellery, solar cells and solar modules will become more expensive due to a hike in customs duties on imported parts, as proposed by Finance Minister Nirmala Sitharaman in the Union Budget for 2022-23.
However, imported cut and polished diamonds, frozen mussels, frozen squids, asafoetida, cocoa beans, methyl alcohol and acetic acid will become cheaper as a result of rationalisation in customs duties.
Here is a list of imported items that will become costlier:
Here is a list of goods that will become cheaper:
The Indian equity benchmarks gave up intraday gains as traders booked profits at higher levels after Budget announcement. The Sensex fell as much as 1,137 points from day's highest level and Nifty touched an intraday low of 17,245 after hgitting high of 17,622.
The Indian equity benchmarks were trading on a strong note as investors rejoiced Budget announcements by Finance Minister Nirmala Sitharaman. The Sensex was up 887 points at 58,901 and Nifty 50 index rose 221 points to 17,561 by 12:53 pm.
Capital expenditure expansion and push for infrastructure development through Gati Shakti master plan boosted cement and infra shares, analysts said.
Buying was visible across sectors twelve of 15 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Metal index's over 2 per cent gain. Pharma, Private Bank, Healthcare, IT, FMCG and Banking shares were also witnessing buying interest.
To enhance transparency and reduce delay in payment, e-billing system to be launched for ease of business in procurement for government departments. Completely paperless e-bill system for all central ministries to be launched.
Emergency credit line guarantee schemes extended by Rs 50,000 crore till March 2023 to a total Rs 5 lakh crore for MSMEs
Finance Minister Nirmala Sitharaman told parliament that the LIC share sale via initial public offering will be introduced in current financial year.
Buying was visible across sectors ahead of Budget presentation. All the 19 sector gauges compiled by the National Stock Exchange were trading higher led by S&P BSE Bankex index's nearly 2 per cent gain. Finance, Healthcare, Basic Materials, Utilities, Capital Goods and Metal indices also rose between 1-1.7 per cent.
Mid- and small-cap shares were also witnessing buying interest as S&P BSE MidCap and S&P BSE SmallCap indices rose nearly 1 per cent each.
Top Nifty gainers:
Top Nifty losers
The Indian equity benchmarks extended gains ahead of Budget presentation. Sensex rose as much as 915 points and Nifty touched an intraday high of 17,596 led by gains in ICICI Bank, HDFC Bank, Infosys, HDFC, Reliance Industries, Kotak Mahindra Bank and Larsen & Toubro.
While some Budgets in the past sent the stock markets soaring, others led to a crash. However, most of the times, Budget day saw the stock market losing value. In the last 10 years, the market fell 9 out of 13 times on budget days, including interim budget days. Read here
The government has collected Rs 1,38,394 crore in the month of January, the Ministry of Finance notified in a press release on Monday.
The development comes a day ahead of the Union Budget, which is to be tabled in the parliament on February 1. According to the release, the amount of GST collection includes Rs 24,674 crore as CGST, Rs 32,016 crore as SGST, Rs 72,030 crore as IGST and a cess of Rs 9,674 crore. The GST collection was up 15 per cent for the month of January 2022, compared to the same period last year, and was 25 per cent higher than the GST revenues in 2020.
Shares of infrastructure and cement companies were trading higher ahead of Budget presentation on hopes of big spending announcements on infra projects.
Foreign institutional investors sold shares worth Rs 33,303 crore in January, data from National Securities Depository Limited showed. Analysts say policies which will be announced in Budget will be key for foreign institutional investment in the country.
A day before finance minister Nirmala Sitharaman presents the annual budget for 2022-23, the Economic Survey 2022 has projected an ambitious GDP growth rate of 8 to 8.5 per cent for the financial year 2022-23 against the current fiscal’s advance estimates of 9.2 per cent. The projected growth, if achieved, will establish India as a stable economy once again. Read more
Shares of Tata Motors fell as much as 4 per cent in an otherwise strong market after it reported loss in December quarter. The Mumbai-based car maker reported net loss of Rs 1,451.05 crore for the third quarter ended December 31, 2021, dragged down by the impact of semiconductor shortage on its British arm Jaguar Land Rover (JLR).
The company had posted a consolidated net profit of Rs 2,941.48 crore in the same period last fiscal.
Its consolidated revenue from operations stood at Rs 72,229.29 crore in the third quarter as against Rs 75,653.79 crore in the year-ago quarter, it added.
Banking shares were witnessing strong buying interest ahead of Union Budget 2022-23 as the sub-index of banking shares on the NSE - Nifty Bank index jumped 786 points or 2 per cent to 38,760. All the 12 shares in the banking index were trading higher.
Top gainers in banking space:
The Indian equity benchmarks staged a gap up opening on Tuesday ahead of presentation of Union Budget 2022-23 by Finance Minister Nirmala Sitharaman. The Sensex rose as much as 713 points and Nifty 50 index reclaimed its important psychological level of 17,500. Analysts expect the finance minister to announce big bang economic reforms to boost the economic growth. ICICI Bank, Infosys, HDFC Bank, HDFC, Reliance Industries, Kotak Mahindra Bank and TCS were among the top movers in the Sensex.
Buying was visible across the board as all the 15 sector gauges compiled by the National Stock Exchange were trading higher led by Nifty Bank index's 1.6 per cent gain.
Recent years have seen a major shift in household savings and investments in India — from predominantly physical assets to financial avenues. According to data disclosed in the Reserve Bank of India’s annual reports, the share of net financial savings of households rose to 40 per cent in fiscal 2020 from 33 per cent in fiscal 2013.
The year 2021 has been a year of trials and tribulations, of growth and learning, of despair and hope, and of stagnation and innovation. To borrow from Dickens’ A Tale of Two Cities, “It was the best of times, it was the worst of times.”
The lessons learnt cannot and will not be relegated just to the year being left behind. The ongoing Covid pandemic has emphasized the importance of institutionalising health care services. Stable, equitable, thriving, and peaceful societies and economies can only be catalysed by the assurance that every single individual will be taken care of. In a country plagued by divides, the digital divide got accentuated during the pandemic.
Stock markets are indicating a gap up opening ahead of presentation of Union Budget 2022-23 by Finance Minister Nirmala Sitharaman on hopes of big bang economic reforms. The Nifty Futures on Singapore Exchange also known as SGX Nifty futures rose over 1 per cent indicating a start above 17,500.