Union Budget 2022: Amit Jain of Ashika Group Had a special conversation with Moneycontrol on the future condition and direction of the market, the country’s economy and the upcoming budget. In this conversation, he said that the third quarter results so far have been as per the estimates, although the effect of inflation on the earnings of companies is clearly visible. In the coming quarters also, the impact of rising cost will definitely be seen on the earnings of the companies. Apart from the quarterly results, Union Budget 2022 will be such an important event that the market will keep an eye on.
In this conversation, he further said that if capital gains tax is cut or withdrawn in the upcoming Union Budget on February 1, it will lead to an improvement in FPI sentiment from the day of the budget itself. Apart from this, if the government makes any changes in the tax laws related to residency rules, then it can give a further boost to foreign investment in the country.
Talking on the budget itself, he further said that there is a possibility that this time the budget will be more populist and growth oriented. In this budget, the focus will be less on control of fiscal deficit and on any other macro factor as compared to growth. This year there are elections in 7 states of the country, in view of which it is expected that the focus of the government will be more on social welfare schemes so that the weaker sections of the society can be wooed.
Talking on the budget itself, he further said that to increase employment, the government can bring schemes like PLI for the SME sector. Apart from this, the focus of the government will also be on the infrastructure and healthcare sector. Which can have a good effect on the economy. Apart from this, some big announcements can be heard in this budget related to the transformation of the Indian economy from fossil fuels to gas fuels. The focus of the government in the budget will be on growth. Therefore, Finance Nirmala Sitharaman can be seen lax in the policy of strict control on the fiscal deficit.
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Talking on the market, he said that we expect the bullish trend to continue for FY 2022-23 by maintaining alertness. Nifty may touch the level of 21000 before March 2023. The reason for this is that there are still many such sectors which are undervalued in Nifty. Similarly, many sectors are undervalued in the broader market, but it should also be kept in mind that this year will be bullish in select stocks rather than broad-based market rally.
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