Stock Market on Budget Day: Sensex, Nifty Close in Red; Key Takeaways from FM’s Speech

The Indian equity market ended in the red on Budget Day. Finance Minister Nirmala Sitaraman’s Budget speech failed to impress investors as Sensex shed 106 points at 71,645 while Nifty declined 28 points and ended the session at the 21697 mark.

Budget 2024 Snapshot:

Nominal GDP Growth: The projection for Nominal GDP growth is 10.5%. This indicates the expected increase in the total value of goods and services produced in the country without adjusting for inflation.

FY25 Capex Target: The capital expenditure (capex) target for the fiscal year 2025 is set at Rs 11.1 lakh crore, reflecting an 11.1% increase. Capex typically includes spending on infrastructure, development projects, and other long-term investments.

Taxation: No proposed change in direct and indirect taxation suggests that the government expects tax rates to remain the same.

1. Fiscal Deficit Targets:

a) FY25 Target: The fiscal deficit target for the fiscal year 2025 is set at 5.1% of GDP.
FY24 Revised: The fiscal deficit target for the fiscal year 2024 has been revised down to 5.8% of GDP.
b) Tax Receipts: The estimated tax receipts for the fiscal year 2025 are Rs 26.02 lakh crore. This includes the revenue expected from various taxes.

Also read: Why Paytm share price hit 20% lower circuit?

2. Support for EV Manufacturing and Charging Infrastructure:

The government plans to support Electric Vehicle (EV) manufacturing and the development of charging infrastructure, indicating a focus on the promotion of clean and sustainable technologies.

3. Youth Support and Interest-Free Loans:

A mention of a “golden era for tech-savvy youth” suggests an emphasis on technology and innovation. Additionally, the announcement of 50-year interest-free loans indicates a long-term financial support strategy for the youth.

4. Housing for the Middle Class:

The government plans to assist in providing housing for the middle class, highlighting a commitment to addressing housing needs within this demographic.

Around 1122 stocks advanced and 1432 declined while 103 stocks remained unchanged.

Among the sectors, Nifty PSU Bank jumped over 3 percent and was the top-performing sector.

Top PSU Bank Gainers:

• Punjab & Sind Bank: up 7.47%
• Indian Overseas Bank: up 6.31%
• UCO Bank: up 5.48%
• Indian Bank: up 4.86%

Metals and realty space saw selling, on the other hand. The top losers were Ratnamani Metals, SAIL, Vedanta, and JSW Steel from the metal space. The top realty losers included Phoenix Mills, Brigade Enterprises, Prestige Estates, and Sobha.

Top Nifty50 Gainers

Top Nifty50 Losers

Asian Markets ends mixed

Asian markets ended on a mixed note with Nikkei down 0.76 percent at 36,011 while Hang Seng gained 0.52 percent at 15,566. Kospi was up 1.72 percent at 2,542.

European markets updates

FTSE at open was trading at 7,666 up 0.47 percent. CAC was down 0.75 percent at 7,599 while German DAX slipped 0.27 percent at 16,857.

Disclaimer: The content of this blog post is intended solely for informational purposes and should not be interpreted as investment or trading advice. The author does not assure the accuracy or completeness of the information presented. Any decisions or actions taken based on the content of this blog post are undertaken at your own risk.