Share traders also eagerly wait for the budget presented every year. A lot of ups and downs are seen in the stock market on the budget day. This year, despite being a Saturday, the stock market is opening on February 1, the day the budget is to be presented. Based on what the Finance Minister Nirmala Sitharaman declares in the budget, the direction of the stock market will be decided.
All economists and analysts are hoping that Nirmala Sitharaman will take many measures to bring the economy back on track. Let us know what the stock market is expecting from the Finance Minister and this time what major announcements can be made in the budget, which can have an impact on the stock market.
Ajit Mishra, Vice President Research, Religare Broking, says, "We reiterate our conscious view of the Indian stock market." The reason for this is that the valuation has lost a lot and now it has started declining. The IMF has reduced India's growth rate to 4.8 percent, due to which people associated with the stock market are expecting a lot from the budget. This will decide the direction of all sectors in the coming days.
Amar Ambani, Senior President, and Research Head, Yes Securities, Yes Securities, said, "Expectations from this budget have increased significantly due to the steps taken in recent times and the Prime Minister's ongoing discussions with corporates." But it is not necessary that all measures should be taken only through budget speech. In Modi Raj, we have seen before that many big announcements are made in the remaining days after the budget. It may be that the Finance Minister announces many such measures in the budget, but they should be formalized later.
Ambani said, "Prohibition of financial losses and disinvestment of PSUs are such big steps that can excite the market. If the fiscal deficit is 3.7 percent, then it will be considered a relief because the market is expecting it to reach 4 percent.
Sales Trading Head of MK Global Financial Services S.K. Hariharan said, "There is hope for additional financial package in the Union Budget, but it can also get frustrating because the condition of the government's treasury is tight."
Geojit's Chief Investment Strategist V.K. Vijaykumar said, 'The government has set a very ambitious target of spending on infrastructure to achieve a $ 5 trillion economy. This huge expenditure will require huge resources. Comprehensive disinvestment can also be a major step in the budget due to tax revenue falling below the target.
Measures to increase Market Sentiment
Vijaykumar said that if the disinvestment is to be successful then it is also important that the capital markets remain strong. Therefore, proposals to increase market sentiment can come. Apart from this, it is possible to reduce the long-term capital gains tax from 10 per cent to 5 per cent or completely abolish LTCG tax on investments up to 2 years.
