Equity investors became richer by more than Rs 2.99 lakh crore on Tuesday as the Union Budget was well received by the stock market.
On Budget Day, the 30-share BSE index jumped 848.40 points or 1.46 per cent to settle at 58,862.57. During the day, it gained 1,018.03 points to 59,032.20.
Equity investors became richer by more than Rs 2.99 lakh crore on Tuesday as the Union Budget was well received by the stock market.
On Budget Day, the 30-share BSE index jumped 848.40 points or 1.46 per cent to settle at 58,862.57. During the day, it gained 1,018.03 points to 59,032.20.
It was merriment on Dalal Street, as the market capitalisation of BSE-listed companies jumped by Rs 2,99,354.61 crore to Rs 2,67,40,561.79 crore.
This is the second day of gain for the market and in two days investors' wealth has zoomed Rs 6,32,857.56 crore to reach Rs 2,67,40,561.79 crore.
"The equity markets were cheerful on the announcement of huge outlay of capital expenditure in overall infrastructure development. This Union Budget will also lay the foundation for economic growth through public investments as India emerges from a pandemic induced slump.
"Hardly any tinkering with tax & avoiding populist measures was also received well by the market participants," said Devang Mehta, Head – Equity Advisory, Centrum Wealth on Budget 2022.
Tata Steel was the biggest gainer among the 30-share frontline companies pack, with a jump of 7.57 per cent followed by Sun Pharmaceutical Industries, Indusind Bank, Larsen & Toubro, UltraTech Cement and ITC.
In the broader market, the BSE midcap and smallcap jumped up to 1.08 per cent.
"The Union Budget 2022-23 has set a great example of continuity of reforms by focusing on increasing Capex in infrastructure development, boosting domestic manufacturing and enhancing digitisation. The government is aware of the high-inflation environment and has cautiously refrained from revenue expenditure profligacy," Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited said.
Finance Minister Nirmala Sitharaman on Tuesday unveiled a bigger Rs 39.45 lakh crore Budget, with higher spending on highways to affordable housing with a view to firing up the key engines of the economy to sustain a world-beating recovery from the pandemic.
While she primed up spending on infrastructure to create jobs and boost economic activity, Sitharaman did not tinker with income tax slabs or tax rates.
Her Budget for the fiscal year beginning April 2022 proposed a massive 35 per cent jump in capital expenditure to Rs 7.5 lakh crore, coupled with the rationalisation of customs duty, an extension of time for setting up new manufacturing companies and plans for starting a digital currency and tax crypto assets.
"The Union budget 2022-23 continued the focus on 'quality' expenditure and increased the Capex by 35% which is ought to have a multiplier effect on the economy. Finally from a taxation perspective, 'No news is good news'," said Ashish Gumashta, CEO, Julius Baer India.
Yesha Shah, Head of Equity Research, Samco Securities, said, "At the outset, this budget was in true sense a booster shot to the previous year’s budget, with announcements being more or less in line with expectations without any major surprises. The government’s bold move of upping its commitment to capital expenditure will indeed act as a catalyst for boosting growth and credit off-take."