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ET NOW quoting sources says government may look to offload 5 per cent stake initially for Rs 65,000 crore to Rs 75,000 crore, which will meet the revised divestment target of Rs 78,000 crore for FY22. So far, the government has fetched little over Rs 12,000 crore from divestments this fiscal. The embedded value calculations have been done by implementation advisor E&Y, sources said, adding that LIC has approached anchor investors to raise about Rs 25,000 crore before the IPO.FM Sitharaman during her Budget speech had said that the IPO was expected shortly and a strategic partner Neelachal Ispat Nigam has been selected.
Listening to music and podcasts will come at a higher price tag with customs duty on headphones set to increase from 15% to 20%. AKG Y500 headphones currently costing Rs 8,999 could now set you back by Rs 9,314
Gourmet food connoisseurs have reasons to be glum as customs duty on Atlantic salmon has increased from 10% to 30%, becoming dearer by almost Rs 265 on a cost of Rs 1,795 for 450gm
Yes there is some risk of inflation but as we are a developing country and have aspirations, demographics, inspiration and a start-up culture etc. in the right trajectory, I think it is a very calculated risk and I would endorse that risk.
– Vallabh Bhanshali, Chairman, Enam Group
Planning to buy a smart watch? You should be reading this
Prices of headphones, earbuds, and smartwatches being imported may go up by between Rs 100 for entry-level devices to over Rs 1,000 and more for Apple, Fitbit, Bose and other premium makers. The Budget has increased the customs duty to 20% as part of efforts to encourage local manufacturing.
Most active stocks of the day
Piramal Ent.(Rs. 48.24 crore), Vodafone Idea(Rs. 41.68 crore), Tata Tele(Rs. 19.01 crore), Bajaj Finance(Rs. 17.38 crore), Tata Steel(Rs. 17.36 crore), SAIL(Rs. 16.71 crore), Tech Mahindra(Rs. 16.43 crore), Wipro(Rs. 14.05 crore), Tata Power(Rs. 13.72 crore) and Apollo Hospital(Rs. 13.51 crore) were among the most traded securities on the National Stock Exchange at 10:04AM in Wednesday’s session.
The number that should matter in Budget is the debt/GDP figure. If a higher fiscal deficit leads to higher growth, you will generally end up with a lower debt/GDP number. I am glad this government gets this.
– Shankar Sharma
Stay warm this winter as duty on imported blankets has fallen from 25% to 10%. So, a Westinghouse electric blanket will cost Rs 500 less at Rs 7,00.
Pay healthy to stay healthy! Be ready to shell out more on maintaining a healthy lifestyle. 250gm of Tassyam Turkish hazelnuts may now cost approximately Rs 515 instead of Rs 449 due to increase in customs duty on imported hazelnuts from 10% to 30%
Love diamonds? You will love this. Adorning yourself with precious diamonds and gemstones is set to become relatively cheaper with customs duty on cut and polished diamonds and gemstones falling from 7.5% to 5%. A half-carat solitaire diamond ring costing Rs 1,30,000 will get you a saving of up to Rs 2,500.
Watch out tax dodgers!
A new Budget rule will prevent people from misusing the provision of setting off losses on any undisclosed income discovered during a search operation or a survey by the income-tax department.
Time to gun for defence?
Angel One says defence spends as well as increase in indigenisation would benefit companies like BEL, Bharat Forge, Data Patterns and MTAR. Allocation of Rs 19,500 crore for PLI for manufacture of high efficiency PV modules will help companies that have full extent of integration like Reliance Industries (Reliance New Energy) and Jindal Poly (Jindal India Solar).
ITC lovers can heave a sigh of relief
Jefferies says no news on tobacco tax is good for ITC. It likes capital goods plays, cement and pipe stocks. Citi sees industrial and infra stocks to be key beneficiaries. Morgan Stanley said it is overweight on industrials, discretionary consumption and financials. It is underweight on exporters and defensives.
Post Budget push for Markets: Sensex jumps 480 pts; Nifty tops 17,700
It’s really hard to make markets smile
Tax on corporates versus tax on you
Stocks to watch out for
Price as on 02 Feb, 2022 09:29 AM, Click on company names for their live prices.
Markets post Budget: Sensex up 480 pts; Nifty tops 17,700
The crypto moves everyone is talking about in short
- A 30% tax on income from crypto assets.
- Losses can not be set off against any other income.
- 1% TDS on all crypto transactions above a certain threshold.
- Gift taxes, if any, will be the liability of the recipient.
- RBI-backed ‘digital rupee’ to be launched in FY23.
Paid less tax don’t worry
You get a second chance if you paid less tax: If you forgot to include your rent income or interest from your savings bank account in your tax returns, you will be allowed to file an updated one and pay the relevant taxes within two years from the end of the assessment year. The earlier window for revising returns was only till three months before the end of the assessment year.
Budget 2022 factors in nominal GDP growth of 12-13%, exactly in line with my expectations. In fact, it’s a huge positive on the supply side
– Raamdeo Agrawal
Market mood today
The domestic equity market was set to open on a higher note following gains in global peers amid Budget cheer. US stocks settled with gains on Tuesday, whereas Asia Pacific shares rose in early trade. Dollar eased as stocks gained.
What’s the latest on LIC IPO? The draft prospectus is in the final stages and is awaiting approval from the insurance regulator, said Tuhin Kanta Pandey, a top government official. The prospectus is expected to be submitted to the capital markets regulator in 7-10 days and will indicate the approximate size of the sale.
In the last couple of years, we have already seen an incremental demand coming from these areas and we believe that with the right push, one can expect these pockets to post even better growth. In line with this, we were expecting the government to incentivize the secondary housing market but that has been left unaddressed. Another major concern area for the sector has been increasing prices of raw materials. Unfortunately, no relief in regard to this has been announced in the budget presentation
– Aditya Kushwaha, CEO and Director, Axis Ecorp
Total government spending will be 4.6 per cent more than the current year and an additional support of Rs 1 lakh crore has been announced
All the things Nirmala Sitharaman said
Expenses that aren’t a worry in advanced countries but pinch your pocket
You have to grow much faster on a sustained basis. That’s what we don’t have
– Priyanka Kishore, head of India and Southeast Asia for Oxford Economics
Did you know: More than 60% of the national income is spent on consumption. Of the rest, a bigger part is parked in savings than invested
How it stacks up
The budget focuses on digitalisation, infrastructure, environment, farmers, education, youth employment, pension, & security. So in a way, this is an overall balanced budget. It is to the country’s benefit in the long run
– Manohar Lal Khattar, Haryana Chief Minister
Unsecured product to help small businessmen
Indian govt will need a heavy hand for battery swapping to work, says Cornell scholar
- “There are many barriers in India in the automotive sector. Many companies have tried and failed to solve the affordability and scale problems in the country. The battery swapping idea is interesting, but is not likely to work without a great deal of government involvement and policy,” Arthur Wheaton, an expert on the automotive industry and director of labour studies at Cornell University’s School of Industrial and Labor Relations, said.
- “Major car companies do not share the technology around batteries (or any technology) and the interchangeable batteries will mean lots of redundant batteries sitting around the country to be effective. There are very few products in the automobile that are consistent across brands. The cigarette lighter power supply (plug for GPS) and the valve stem for tires are about the only ones that can be mixed and matched across any brand,” he added.
2,000 kilometres of the rail network will be brought under Kavach, the world-class technology for railway safety. 400 new Vande Bharat express trains will be manufactured. It is a game-changing and growth-oriented budget
– Arun Arora, General Manager of Eastern Railways
Ready to fire up growth engine
The first principle is do no harm and the government has adhered to this – there are no major policy changes, which is good in the current scenario. I call this a measured and pragmatic budget. There was tremendous pressure on the government to do more given the upcoming state elections
– Mukesh Aghi, president, US-India Strategic and Partnership Forum (USISPF)
Govt to bring battery swapping policy to promote electric vehicles
- Finance minister Nirmala Sitharaman on on Tuesday announced that the government will bring a battery swapping policy to boost use of electric vehicles in the country in view of space constraints for setting up charging stations. “Considering the constraint space in urban areas for setting up (electric vehicles) charging stations, a battery swapping policy will be brought out and interoperability standards will be formulated,” Sitharaman said in her Budget speech in the Lok Sabha.
Founders, investors to gain from LTCG surcharge cap
Budget is very balanced. It boosts spending towards growth-oriented policies that create jobs, boost manufacturing, help agri-economy & infrastructure creation. In short, a mix of short-term boost & long-term structural emphasis is hallmark of this Budget: BSE MD Ashish Chauhan
Aatma nirbhar Bharat Ka Budget brings with it new energy and strength to our development trajectory, especially at a time when we are courageously fighting a once-in-a-lifetime global pandemic. This Budget brings more infra, more investment, more growth and more jobs: PM Modi
In the Union Budget 2022, the government has kept a wide approach to accelerate the growth and well-being of people. In addition to this, the government’s decision on creating an open platform for the National Digital Health Ecosystem is highly appreciated. This will help in maintaining digital registries of health providers and health facilities, unique health identity and universal access to health facilities.
– Amol Naikawadi, Joint – Managing Director, Indus Health Plus
Clarity needed on duty changes in electronic components
- Electronics manufacturing companies and stakeholders said that while the government’s proposed customs duty changes on components of mobile phone chargers, camera lens of mobile phones and other parts of electronics devices including hearables and wearables is a welcome move but that more clarity needs to emerge on the fine print of the scheme.
The government has begun work to replace the Special Economic Zones (SEZ) Act with a new legislation that will cover industrial enclaves and revive these zones as engines of growth.
NGOs raise concern over reduction in fund allocation for social sector
- Puja Marwaha, CEO at Child Rights and You (CRY) said, “While there has been an increase in absolute terms, there has been a reduction in the share of child budget in the overall allocation.” This year’s budgetary allocations for children as a proportion of the Union Budget is the lowest in the last 10 years. It has reduced by 2.41 percentage points, Marwaha said.
- The Kailash Satyarthi Children’s Foundation (KSCF) said a decline is noted in the allocation for the National Child Labour Project (NCLP). The allocation for NCLP has been reduced to a paltry Rs 30 crore from Rs 120 crore during FY22, it said.
Ease of doing biz
Govt increases budgetary allocation to Rs 3,474 crore crore for construction of Parliament, Central Vista projects and Supreme Court of India for 2022-23 compared to Rs 2,589 crore in revised estimate of 2021-22.
Budget welcomed by all sections of society; Reaction of common man has increased manifold our eagerness to serve people: PM
I was astonished, shocked that the Finance Minister was outlining a plan for the next 25yrs. Govt seems to believe that the present does not need any attention & the public can be asked to wait patiently until ‘Amrit Kaal’ dawns. This is mocking the people of India: P Chidambaram
Health sector allocation sees over 16% hike in Budget
- Out of the total Rs 86,200.65 crore (BE) for 2022-23, Rs 83,000 crore has been allocated to the Department of Health and Family Welfare, while Rs 3,200 crore has been allocated to the Department of Health Research.