Active Stocks
Tue May 21 2024 15:59:52
  1. Tata Steel share price
  2. 174.30 3.81%
  1. NTPC share price
  2. 371.90 1.50%
  1. Power Grid Corporation Of India share price
  2. 325.45 2.71%
  1. Tata Motors share price
  2. 951.15 -0.19%
  1. State Bank Of India share price
  2. 830.55 1.18%
Business News/ Budget / Budget Expectations/  What stock markets want from Budget 2022
BackBack

What stock markets want from Budget 2022

The market wants a Budget that should be reformist and pro-growth where last year’s Budget headed in the right direction, therefore, we need further momentum to reforms and growth in the upcoming Budget

The market will also like more clarity and pace in the government’s asset monetization and divestment program (Photo: Mint)Premium
The market will also like more clarity and pace in the government’s asset monetization and divestment program (Photo: Mint)

The market wants a Budget that should be reformist and pro-growth where last year’s Budget headed in the right direction, therefore, we need further momentum to reforms and growth in the upcoming Budget.

We hope that the government will maintain its fiscal expenditure high with a focus on infrastructure. Though there were several announcements for the infrastructure sector and that need to be continued, however, there is a need for some significant measures for the real estate and auto sector to create multiplier effects because these two sectors create jobs and growth in multiple sectors.

Government should increase the tax benefits for housing loans because it is almost at the same level for the last many years. There were many steps taken by the government in the last one year to boost the economy but there was no direct focus to boost consumption therefore the market will like to hear some significant announcements for salaried class.

The market will also like more clarity and pace in the government’s asset monetization and divestment program. The world is facing many supply-side issues and India can turn some challenges into opportunities therefore the government should focus on some areas in the upcoming Budget.

In terms of taxation related to the stock market, I believe STT should be removed or at least reduced because initially it was introduced in the place of long-term capital gain but now, we have both LTCG and STT that is not fair for the Indian investors. Stock market penetration is increasing in India and it is anticipated that the government will take policy measures to ensure that the Indian market becomes more investment-friendly in comparison to other emerging markets where reducing LTCG and STT could be a good step in that direction. The transaction cost in India is too high and LTCG and STT are seen as a sentiment dampener for the market.

Sunil Nyati is Managing Director of Swastika Investmart Ltd.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed - it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 18 Jan 2022, 04:50 PM IST
Next Story footLogo
Recommended For You