Budget has always been seen as an economic booster. After the budget, there is usually a boom in the stock market too. This time also the eyes of the equity market are fixed on the budget.
Budget 2022 Expectations: Now only a few hours are left for the presentation of the budget for the financial year 2022-23. Budget has always been seen as an economic booster. After the budget, there is usually a boom in the stock market too. This time also the eyes of the equity market are fixed on the budget. There has been pressure on the market before the budget. At the same time, this budget is being presented at a time when the new variant of COVID 19, Omicron, is believed to have an impact on the economy in the short term. In such a situation, the announcement of the Finance Minister can not only improve the sentiment of investors, but the participation of retail investors in the market can increase further. Brokerage house ICICI Securities has given a report on the expectations of the budget and where will the earning opportunities be made after the budget.
Stock Buy Range(Rs) Target(Rs) Upside
Larsen & Toubro 1840-1915 2168 14%
Axis Bank 738-785 870 14%
Tata Motors 475-503 555 14%
United Spirits 805-845 970 16%
Bank of Baroda 98-105 116 14%
CONCOR 600-630 698 13%
KPR Mills 625-655 765 19%
National Aluminum 102-108 125 19%
Bharat Dynamics 458-480 548 17%
KNR Construction 288-302 358 20%
Budget to support growth
ICICI Securities says that like last time, this time also the budget may be growth supportive. Growth can get a new direction from the budget. The government can continue the growth agenda through higher capex allocation. This will help in creating more and more jobs while the investment cycle will accelerate. The brokerage believes that the fiscal conservative approach may continue.
The government can increase spending to boost GDP. The brokerage estimates that the fiscal deficit for FY22E could be 6.3 per cent of GDP. If the government’s capital expenditure allocation remains high, further healthy tax revenues and accelerated disinvestment will reduce fiscal deficit.
Opening-up economy will be triggered
The brokerage estimates that the growth is expected to pick up. Opening up economy and public and private capex can be key triggers for this. The tax revenue growth for FY23E is expected to be 14.1 per cent. With the Higher Disinvestment and Monetization Plan, the government can focus on raising more and more funds. In such a situation, a clear roadmap can be seen on disinvestment and privatization. Its speed may increase.
Support for MSME/Rural economy
The brokerage says that better schemes for the MSME sector in the budget can give a boost to the economy. At the same time, it is expected that the government will make big announcements for the rural economy. There should be ways to make ease of doing business easier. There should also be a focus on tax compliance. Single window electronic clearance system is expected in MSMEs. ECLGS and other loan guarantee schemes for MSMEs and Micro should be increased. Higher allocation is expected for PLI.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
,