The market has high expectations from the budget. 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.
Budget 2022 Expectations: The impact of the Union Budget on the equity market has waned over the years as the government has taken most of the reforms out of the purview of the budget. Yet investors always see the budget as a booster. It is expected that the market can get a strong boost from the budget. Now only a few days are left for the presentation of the budget, so like every time, this time also the market has high hopes from the budget. 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. The brokerage house Axis Securities has given a report on the expectations of the budget and where will the earning opportunities be made after the budget.
The brokerage house says that the positive is that there has been a jump in tax revenue in the last few months and the economy is on the path of recovery. The fiscal situation seems to be managing. This budget is expected to be growth oriented. This is also the reason that elections are being held in many states this year. The government can announce to increase spending on infrastructure in the budget. This will help the economy to achieve more growth momentum. At the same time, the scope of the PLI scheme is also expected to be increased.
focus on job creation
Government should focus on job creation. Promote such a sector, from where more and more jobs can be created. At the same time, the government should take measures for investment driven growth. The infrastructure sector also has high expectations from the budget, where many jobs can be created. Capex is needed for roads, water, metro, railways, defence, digital infrastructure and green technology.
Scope of PLI Scheme
The scope of the PLI scheme is expected to be expanded in this budget. At the same time, the government should increase the expenditure on agriculture and related activities, so that the rural economy can be strengthened. The government should take such measures, so that private capex can also get a boost.
disinvestment and privatization
There is a need for a clear roadmap on disinvestment and privatization. It is expected that such announcements should be made in the budget that in the coming time, the government will accelerate the pace of disinvestment and privatization. In both these cases, there has been a slowdown in the last few years.
Tax Structure
Corporate tax was reduced in the year 2019. This structure is likely to be retained in FY 2023 to encourage private investment. The personal income tax structure is also expected to be retained, as additional tax may impact consumption.
fiscal situation
Fiscal deficit has been a big challenge due to COVID-19. It has been at an all-time high in FY21. However, in the last several months, the tax revenue has increased with rapid collection. Keeping this in mind, there is no possibility of a major decline in the fiscal deficit. Fiscal consolidation is expected in FY2023.
Which stocks to keep an eye on
The stocks on which brokerage house Axis Securities has expressed confidence in view of Budget 2022 include Maruti, Minda Corp, Polycab India, Canfin Homes, SBI Life, KNR Construction, HG Infra, Welspun India and Dalmia Bharat. On the other hand, ITC, Godfrey Phillip and VST Industries are such stocks in the list of brokerages, which have a negative view.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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