Indian Union Budget 2021-22: The market got wings after the budget presented on 1 February last year. Seeing the emphasis on consumption, market sentiments strengthened and in February itself the Sensex set a record high. However, this rally was stopped a few days later by the corona virus epidemic. The lockdown was announced across the country due to the corona virus epidemic, which hit the market in March at its lower levels. On 24 March, the Sensex fell to a low of 25638.9. After August, the market recovered again and by November, the market broke its earlier record. In December 18, the Sensex crossed the 47000 mark for the first time.
Market climbed 18% since budget
Since the budget 2020, there has been 18 percent growth in the stock market. The Sensex was at 39735 before February 1, which increased to 47,026 on December 18. That is, the Sensex grew at 18 percent. At the same time, there is a growth of 19 percent in the midcap. On 1 February, the BSE Midcap index was at 15119, which has now come down to 17936. At the same time, in Smallcap, the growth was 25 percent during this period. During this period, the BSE Smallcap index rose from 14344 to 17877.
There was an emphasis on consumption in the budget
In the last budget, the Finance Minister introduced a new income tax structure, which was optional. In the Budget 2020, Finance Minister Nirmala Sitharaman had announced to reduce the rate of tax rate for taxpayers from 5 to 7.5 lakh rupees to 10 percent. Income tax slab reduced from 20 percent to 15 percent on 7.5 lakh to 10 lakh rupees. In fact, the main concern of the government was to bring back the growth rate of the country’s economy, which was at a six-year low of 4.5 percent during the Budget 2020. This made the sentiment that if the tax payers’ savings increase, then they will put their savings in the market. Which will increase the liquidity.
However, the benefit of going to the new income tax structure was for those whose salary is more than 10 lakhs per annum.
Events for the market since the budget
Since the budget, the lockdown was imposed due to Corona virus epidemic in the country. After which the market came down to its lowest levels. Since then, the government has drastically cut interest rates to increase liquidity in the market. Adequate liquidity in NBFCs was maintained, measures were taken. The government took measures to increase consumption by giving relief package. Central banks around the world maintained interest rates at lower levels. Tension on the border between India and China increased, which affected the market. Since the budget, where crude has gone to lower levels, by the end of the year, crude has crossed the level of $ 50 per barrel. The Presidential election in the US also affected the markets.
These stocks gave the highest returns
Adani Green: 456%
From February 1, the share price rose from Rs 186 to Rs 1034.
Adani Gas: 117%
From February 1, the share price rose from Rs 165 to Rs 358.
Adani Enterprises: 107%
From February 1, the share price rose from Rs 221 to Rs 458.
Sinjin International: 95%
Since February, the share price has increased from Rs 314 to Rs 612.
Device Lab: 91%
Since February, the share price has increased from Rs 1990 to Rs 3819.
Aurobindo Pharma: 90%
Since February, the share price has increased from Rs 464 to Rs 880.
Ipca Lab: 82%
Since February, the share price has increased from Rs. 1220 to Rs. 2215.
Cadila Healthcare: 83%
Since February, the share price has increased from Rs 260 to Rs 477.
L&T Infotech: 69%
Since February, the share price has increased from Rs 1975 to Rs 3335.
Mindtree: 67%
Since February, the share price has increased from Rs 881 to Rs 1471.
Dr. Reddy’s: 67%
Since February, the share price has increased from Rs 3110 to Rs 5182.
Source: www.financialexpress.com