NiftyforAll: Weekly Review 06th Feb, 2023

Saturday, February 04, 2023

Weekly Review 06th Feb, 2023

Dear All,

The Union Budget for FY24 broadly brought smiles on bulls as it indicated the government’s continued focus to foster domestic growth through higher capital investments and reforms while pumping in incentives to boost rural growth.

No changes to the long-term capital gains tax or securities transaction tax came as another big relief for domestic equities.

Some Key Important Point Sector wise :-

1. Budget increased the capital outlay for FY24 by more than expected 33% to Rs 10 lakh crore. This is almost 3 times higher than the outlay made in the 2019-20 Budget

2. Bedget 2023 to boost consumer spending, which will effectively drive credit growth.

3. Increased capital outlay and spending to scrap old government vehicles, which is a good for entire Auto industry.

4. Budget 2023 has hiked the National Calamity Contingent Duty (NCCD) on cigarettes by 16%, which will translate into about 1-3% increase in prices of cigarettes.

5. Budget 2023 announced that for life insurance policies, other than ULIPs, where the premium is more than Rs 5 lakh, the income will be taxed. This will be applicable on policies being offered after April 1. Most of the Indusrance Stocks fell post announement.

6. Budget 2023 said promotion of tourism will be taken up on a mission mode, with active participation of states, the convergence of government programmes and public-private partnerships, good news for all Hotel Sector.

7. Budget 2023 reduced the basic customs duty on parts of open cells of TV panels.

8. Budget has estimated a divestment target of Rs 61,000 crore for the current financial year.

9. Government reduced the customs duty on lithium cells sharply to 13% from 21% and extended subsidies on EV batteries for 1 more year.

10. Budget raised the target for farm credit to Rs 20 lakh crore. The government will also focus on areas including animal husbandry, dairy and fisheries.

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