Share market highlights on Budget day: Sensex ends 395 points down, Nifty near 11,800

Announcing ease in regulatory requirements for startups, finance minister Nirmala Sitharaman today in her budget speech said that the funds raised by startups will not require any kind of scrutiny of the Income Tax department following the requisite declaration and information provided. The move comes as a great relief for startups that have been subjected to heavy scrutiny with respect to the angel investment raised for growing their business at its early stage. “The issue of establishing the identity of investor and source of his funds will be resolved by putting in place a mechanism of verification so that there is no man-to-man interface there,” the minister said.

Also read: Budget 2019: Income tax should not enquire startups for angel tax without approval, says Nirmala Sitharaman

Praising the Union budget as futuristic, BJP president Amit Shah on Friday said it reflects Prime Minister Narendra Modi’s vision where farmers prosper, the poor lead a life of dignity, the middle class gets its due and Indian enterprise a boost. Shah, also the Union Home minister, said the budget highlights the “exemplary” work done in key sectors relating to the economy, housing, infrastructure and the social sectors over the last five years. It ignites a spirit of hope that India can become a USD 5 trillion economy in the coming years, he said. “The budget presented by Finance Minister Nirmala Sitharaman is a futuristic one. It provides a coherent roadmap for sectors that will drive growth and innovation among our citizens. The emphasis on clean energy and cashless transactions are also steps in the right direction,” he said in a series of tweets.

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Following the speech by Nirmala Sitharaman this afternoon, the headline indices reacted nagatively, as the Sensex fell nearly 600 points from the day's high while the Nifty plunged below the 11,800-mark. Taking stock of the negative reaction of Sensex and Nifty, experts note that a few announcements such as increasing of income tax for HNIs, no mention of fiscal deficit, and a proposal to increase the public shareholding to 35% has not gone down well with the investors. Notably, the finance minister has proposed to increase the surcharge for those earning Rs 2-5 crore to 3 per cent and for those earnings above Rs 5 crore to 7 per cent. "The HNI's will now pay more than 38% income tax if they're earning between 2-5 crore, and 42%  tax if the income is above Rs 5 crore. That's a huge jump--a jump of 20% for those earning above 5 crore. Of course," Ashok Wadhwa of Ambit Capital explained in an interview to CNBC TV18.

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While schemes such as Swachh Bharat Abhiyan are nearing completion, the Narendra Modi led government has set new goals for the scheme, said Nirmala Sitharaman in her maiden budget speech. Announcing that the government now looks to leverage technology, waste will now be used to generate energy, the finance minister said in the speech. “I now propose to expand the Swachh Bharat Mission to undertake sustainable solid waste management in every village,” she said. Talking about the success that Swachh Bharat Mission has achieved so far, Nirmala Sitharaman said that the scheme, which was initiated in 2014, has achieved tremendous success with more than 5.6 lakh of villages becoming Open Defecation Free (ODF). She also said that the government will have to build on this success.

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After opening higher, the headline indices--Sensex and Nifty-- continued to exted losses after the Union Budget presented by FM Nirmala Sitharaman in the parliament. The Sensex is trading 281 points down at 39,626.93, while the Nifty is below the 11,850-mark. Earlier, the Sensex recalimed the 40,000-mark, while the Nifty is trading nearing the crucial 12,000-mark. Shares of IndusInd Bank, L&T are among the biggest gainers, jumping up to 0.90%. A look at LIVE Sensex heatmap.

In what may come as bad news for fuel buyers, Finance Minister Nirmala Sitharaman proposed special additional excise duty of Rs 1 per litre on petrol and diesel for road and infrastructure sectors. The prices of petrol and diesel remained unchanged across the country for the third successive day on Friday (July 5). A litre of petrol today costs Rs 70.51 while diesel costs Rs 64.33 per litre. The prices on Thursday also closed on the same note.

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Unveiling budget for the financial year 2019-20, Finance Minister Nirmala Sitharaman has announced new coin for Rs 20 along with other currency denominations Rs 1, Rs 2, Rs 5 and Rs 10. Stating that the new coins will have new features, the finance minister added that they will be easily distinguishable. The government had recently released refreshed coins for denominations Re 1, Rs 2, Rs 5, and Rs 10 early this March. Special attention was also paid for visually impaired citizens and features were added to make them easily distinguishable. These new coins were made on the basis of the design sent by the National Institute of Design. according to media reports, the new coins weigh more and are considerably bigger than their predecessors.

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"The HNI's will not pay more than 38% if they're earning between 2-5 crore, and 42% for above Rs 5 crore. That's a huge jump--a jump of 20% for those earning above 5 crore. Of course, the taxpayers willl have to bear it," Ashok Wadhwa of Ambit told CNBC TV18. 

Finance Minister Nirmala Sitharaman in her maiden Budget 2019-20 in the second tenure of Narendra Modi government said the government would consider increasing public shareholding to 35 per cent from the current shareholding of 25 per cent, in a move that may flood the markets with new equity. The minister said the government has asked the market regulator Securities and Exchange Board of India or SEBI to raise the shareholding limit to 35 per cent from 25 per cent.

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Union Budget 2019 India: Finance minister Nirmala Sitharaman today announced a television channel dedicated to the growth of India’s burgeoning startup ecosystem that is already the world’s third-largest startup ecosystem with around 8,000 technology startups and overall around 30,000 startups. In her budget speech, Nirmala Sitharaman announced that the new TV channel to be launched under the Doordarshan umbrella will help startups with respect to the challenges it faces. There will be a “TV channel exclusively for startups to promote them, discuss growth issues, matchmaking with venture capital (investors) for funding and also for tax planning. This channel shall be designed and executed by startups themselves,” the minister said.

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Finance Minister Nirmala Sitharaman on Friday proposed an allocation of Rs 70,000 crore for public sector banks (PSBs) so as to improve the rate of credit in the economy. Following a review initiated by the Reserve Bank of India (RBI) in 2015, the first term of the Narendra Modi government infused record amounts of capital into PSU banks post an asset quality review started by the central bank in 2015. The review resulted in rise in reported bad assets and called for a surge in provisions.

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India's external debt to GDP ratio at 5% remains the lowest globally, FM Nirmala Sitharaman noted.  "Due to slew of efforts taken by our government, the direct tax revenue has increased to Rs 11.37 lakh crore from 2013-14 to 2018-19," she added. I appreciate honest taxpayers of India, she added. The government is setting an enhanced target of Rs 1,05,000 crore for disinvestment and will continue with disinvestment of PSUs in the non-financial space, she added.

Finance Minister Nirmala Sitharaman Friday said the time is right to consider increasing minimum public shareholding from 25 per cent to 35 per cent. Presenting her maiden Union Budget, Sitharaman said the government has already written to Sebi regarding the matter. She also said Electronic Fundraising Platform, a social stock exchange, will be set up to list social enterprises and voluntary organisations working for social welfare objectives.

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Finance Minister Nirmala Sitharaman on Friday said KYC norms would be eased for foreign portfolio investors and proposed allowing the listing of social enterprises and voluntary organisations to help them raise funds. Presenting her maiden budget, she also said steps need to be taken to bring capital markets closer to the people and proposed raising the threshold for minimum public shareholding from 25 per cent to 35 per cent. She said a number of steps would be taken in consultation with the RBI and Sebi to deepen the corporate bond market.

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After the FM announced various reforms for the banking sector, the space is trading higher in the afternoon trade on Friday. The FM has allocated Rs 70,000 crore for PSU bank recapitalisation. Finance Minister Nirmala Sitharaman said that fundamentally sound NBFCs will keep getting funding from banks. Kotak Mahindra Bank, SBI, Federal Bank, ICICI Bank, Axis Bank and HDFC Bank are trading near their 52-week high levels. Bank of Baroda and IndusInd Bank were among the top gainers. A look at Nifty Bank index.  

Promoters and state-run companies (PSUs) will have to comply to meet with the new minimum public shareholding norms proposed by Finance Minister Nirmala Sitharaman, said Arving Srivatsan, Partner, Nangia Advisors. Note that it is still a proposal from the finance minister to SEBI to raise minimum public shareholding in listed companies to 35%, and not a firm decision yet.

Union Budget 2019: The D-day has come for Nirmala Sitharaman’s maiden budget and in it, the finance minister has announced a pension scheme for retail traders who have annual turnover below Rs 1.5 crore, possibly bringing a major cheer for the ruling BJP’s one of the loyal support base. Targetting around three crore retail traders in India, the scheme is called Pradhan Mantri Karam Yogi Man Dhan and will be a massive relief for retail traders. To avail the same, Nirmala Sitharaman has said that AADHAR and a bank account will be mandatory.

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"Higher minimum public shareholding of 35% in listed companies will help force promoters to relax their grip on companies and let public and institutions have greater say in corporate actions that are put to vote. However, the enforcement will have to be effective given the track record since 25% rule was introduced in 2010," Sunil Gidwani, Partner, Nangia Advisors, said.

After the Union Budget provided mild relief for the Housing Fianace and NBFC space, a few stocks including IndiaBulls Housing Finance, HDFC are trading higher in the afternoon trade on Friday. The Nifty Financial Services sector is trading 0.34% higher at 13,814.40.  In the index, Edelweiss, IndiaBulls Ventures are trading with losses. "Stressed NBFC sector will find much consolation in proposal to allow foreign portfolio investment in debt securities issued by NBFCs," Sunil Gidwani, Partner, Nangia Advisors, said. A look at Nifty Financial Servicves Index.

"Stressed NBFC sector will find much consolation in proposal to allow foreign portfolio investment in debt securities issued by NBFCs," Sunil Gidwani, Partner, Nangia Advisors, said. "It will hopefully also encourage deepening the debt market for participation by other categories of investors," Sunil Gidwani added.

Budget 2019 India: The government Friday proposed relaxation in the FDI norms for sectors such as media, aviation, insurance, and single brand retail with a view to attract more overseas investment. Finance Minister Nirmala Sitharaman in his Budget speech said that India’s FDI inflows in 2018-19 grew by 6 per cent to USD 64.37 billion. 

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After opening higher, the headline indices--Sensex and Nifty-- are exteding losses amid the ongoing Union Budget being presented by FM Nirmala Sitharaman. The Sensex is trading 164 points down at 39,768.09, while the Nifty is below the 11,900-mark. Earlier, the Sensex recalimed the 40,000-mark, while the Nifty is trading nearing the crucial 12,000-mark. A look at LIVE Sensex heatmap.

"Finance minister starts the budget speech on a positive note and said that India should become 3 trillion $ economy in the current year itself. Reiterating that gone are the days of policy paralysis, she is laying out the growth path. Looking at the initial part of the speech, major push is given for infrastructure and its schemes like Gas and Water grids, Sagar mala, Bharat mala, Udaan to boost to the economy," Rajiv Singh, CEO Karvy Stock Broking said.

"There are severe redtrictions on NRIs using FPI route. Allowing NRIs to invest under FPI route will make investing easier and would augur well for capital markets and intermediaries and other service providers in India," Sunil Gidwani, Partner, Nangia Advisors said. "100% FDI in insurance intermediaries is likely to see consolidation and recapitalisation among players like corporate brokers and TPAs," he added.

Finance Minister Nirmala Sitharaman, presenting maiden budget of re-elected Narendra Modi government, on Friday said that the economy looks towards the finance minister to bring about reforms and introduce sops, as it tackles economic slowdown. The budget has already talked about India moving fast on its way to become a $5 trillion economy by FY25. Among the major points mentioned by the finance minister in the budget so far, these 10 points highlight the vision shared by the government.

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After opening higher, the headline indices--Sensex and Nifty-- gave up gains and turned negative amid the ongoing Union Budget being presented by FM Nirmala Sitharaman. The Sensex is trading 25 points down at 39,862.32, while the Nifty is below the 11,950-mark. Earlier, the Sensex recalimed the 40,000-mark, while the Nifty is trading nearing the crucial 12,000-mark. A look at LIVE Sensex heatmap.

In what could come as a cheer for stock market investors, Finance Minister Nirmala Sitharaman said that it has asked SEBI to mull minimum public shareholding to 35% from 25%. Further, the government seeks to allow FIIs & FPIs investment in debt securities issued by NBFCs. "We will work with the regulators to allow AA bonds to be used as colllateral.

Finance Minister Nirmala Sitharaman: Schemes such as 'Bharatmala', 'Sagarmala' and UDAN are bridging the rural and urban divide, improving our transport infrastructure. Together, we can prosper. I wish to propose a numbers of reforms to kickstart virtuous cycle of growth. The common man was served even as major transformational reforms were brought about. 

Stock markets are cautiously watching Finance Minister Nirmala Sitharaman's Budget speech. Sensex is barely away from slipping into the red, while Nifty has already dipped into a minor loss. Sensex trading at 39925 points; Nifty at 13940 points.

The Sensex and Nifty are trading with mild gains amid the ongoing Union Budget 2019. FM Nirmala Sitharaman has announced government's initiates for India's Sagarmala and Bharatmala project. She has also provided the roadmap to move towards an Electronic Vehicle regime in the next few years. All thre major sectoral indices are trading with mild gains. A look at Nifty sectoral heatmap.

"The survey laid emphasis on private investment as the key driver which will set the economy on a virtuous cycle of savings, investment, exports and growth, essential for India to become a US$5 tn economy by FY2025. We have highlighted in multiple reports over the last few years the importance of investment in driving long term growth and ways to improve the investment climate. Greater investment will result in productivity gains which will make the economy more competitive and creating more jobs. Job creation will lead to additional saving, which can limit consumption demand which is why exports will need to be an essential part of the framework. Essentially, the survey argues for a more holistic approach to growth and jobs rather than looking at each of the issues in silo. The survey calls for focusing on the MSME sector, legal reforms, policy consistency, and behavioral changes of individuals," Kotak Securities said in a note. 

"India is set to become USD 3 trillion economy this year itself. We were at rank 11 5 years ago, now we stand at number 6," says FM Sitharaman.  Guided by the dictum of "blue sky thinking", the Economic Survey released underscored the ambitious agenda of applying principles of behavioural economics to achieve 8 per cent of sustained GDP growth to reliase PM Naredra Modi's dream to make India a $5-trillion economy by 2024-25.  The Survey is the first for the new government, which came to power with an overwhelming mandate. 

FM Nirmala Sitharaman says that the focus of government on last mile delivery. "Mazboot Desh ke liye Mazboot Nagrik has been our focus"

After claiming an absolute majority again after the 2019 General Election, the Narendra Modi Government is slated to come up with their first budget of the second term on Friday, the 4th of July 2019. So many expectations have been build up around this event, which has always been one of the most important domestic events in a year.  All industries representing different sectors, and people at large from the various strata of the society expect something or the other the Government from every budget. Investors are no different. At this point, it would be interesting to take a look at what can we realistically expect from the Union Budget 2019.

Also read: Budget 2019: Stock market investors looking for cues on taxes, economic push amid little suspense

After opening higher, the headline indices--Sensex and Nifty-- gave up gains ahead of the Union Budget scheduled to be announced from 11 a.m. by FM Nirmala Sitharaman. The Sensex is trading flat at 39,916.17, while the Nifty is below the 11,950-mark. Earlier, the Sensex recalimed the 40,000-mark, while the Nifty is trading nearing the crucial 12,000-mark. Shares of IndusInd Bank, L&T are among the biggest gainers, jumping up to 0.90%. In the Nifty, 38 shares registered gans while 12 registered declines. A look at LIVE Sensex heatmap.

Even as the expectations of a fiscal stimulus from Budget 2019 rise, global brokerage firm CLSA says that the government is unlikely to substantially loosen the fiscal deficit target for the financial year. Earlier, the Narendra Modi-led government had set a fiscal deficit target of 3.4% for FY20 in the interim Budget in February. “The fiscal deficit continues to be an issue. The revenue stream of the government, and given where the expenditure priorities are, it doesn’t leave the government too much room, or discretionary cash,” Mahesh Nandurkar, India Strategist, CLSA explained in an interview with ET Now.

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Despite India being the second-largest telecom industry in the world, with a subscriber base of over 1.2 billion, 1.19 billion mobile phone connections and over 500 million internet users, the government of India had to revise its revenue provision from over Rs. 48,000 crores to around Rs. 32,000 crores in the financial year 2017-18. This in itself indicated the state of affairs of the Indian telecommunication Industry.  Moving forward, to rejuvenate the world’s second-largest telecommunications market, some meaningful steps are required by the Government. According to a report prepared by the GSM Association (GSMA), the Indian mobile economy currently contributes six percent to India’s Gross Domestic Product (GDP).

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While there are a lot of expectations from the upcoming Union Budget 2019 the ongoing agrarian crisis, economic slowdown and low job creation need immediate attention, says Akhil Mittal of Tata Mutual Fund. “The budget gains criticality as economy is passing through difficult times and there is a huge expectation that government would take steps to simulate the economy. Agrarian crisis, falling consumption growth, falling private investments and low job creation, all require urgent attention of the government,” Akhil Mittal, Senior Fund Manager, Tata Mutual Fund told Financial Express Online. 

Also read: Budget 2019: Agrarian crisis, job growth need immediate attention, says Tata MF fund manager

In a marked departure from the traditional leather  briefcase, the general budget Friday was seen being carried in a red-colored traditional ‘bahikhata’ by Finance Minister Nirmala Sitharaman. The red cover that replaced briefcase for the first time is a traditional ‘bhaikhatta’, CNBC TV 18 reported citing the Chief Economic Advisor (CEA) Krishnamurthy Subramanian said. The traditional ‘bhaikhatta’ symbolises departure of slavery from our western thought, he added. Finance Minister Nirmala Sitharaman will be presenting the first general budget under re-elected Narendra Modi government in sometime from now. The budget would be closely watched by all quarters of the industry, owing to consumption slowdown and sluggish demand.

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