’No bad news is good news’: How stock market sees Budget 2022? Stocks to watch
- Stock market today: Sensex and Nifty were up more than a per cent after Budget 2022 announcements by FM Sitharaman
In a volatile session, Indian equities surged after erasing gains in afteroon deals post Budget 2022 announcements made by Finance Minister Nirmala Sitharaman in the Parliament on Tuesday. The yield on the benchmark 10-year bond rose as much as 21 basis points to 6.89%, the highest since July 2019. The rupee fell 0.2% to 74.74 per dollar.
The big highlight of the budget is the 35% increase in Capex following the same increment last year means the government's main focus on manufacturing and infrastructure that will automatically result in growth and employment, say analysts.
“There was no negative surprise for the market in light of state elections. Overall the budget is sensible to give more fuel to the growth engine of the economy. The investor needs to be focused on Capital Goods and Infra, Thermax, LT, Siemens, Grindwell Norton, KNR Construction, PNC infra, ACC,” said Parth Nyati, Founder, Tradingo.
The government continued with its pro-growth measures along with some fiscal prudence where manufacturing is a key theme where the government put focus through a sharp increase in Capex.
“No bad news is a good news for Markets. FM Nirmala Sitharaman kept it very simple focusing on long-term growth - High Hopes and Expectations neutralised,” said Prashanth Tapse, VP Research, Mehta Equities Ltd.
The growth in the manufacturing sector will have a domino effect on different sectors to generate growth and employment, analysts added.
“There is no negative trigger, therefore, the market will like the budget and if global cues will remain supportive then we can see new highs in our market soon,” said Sunil Nyati, Managing Director of Swastika Investmart Ltd.
The government stepped up investment on infrastructure, highways and affordable housing to put growth on a firmer footing as the economy recovers from the pandemic.
"We believe infrastructure will perform well, clearly because of the great impetus. Cement and Metals should also start picking up. Banking should see improvement in the forthcoming quarters, with GDP growth aiding credit growth,“ said B Gopkumar, MD & CEO, Axis Securities.
"Sometimes boring is good- From a market, investor/trader standpoint nothing has changed so this will largely play out as a nonevent for the stock markets," said Nikhil Kamath, Co-founder, True Beacon and Zerodha.
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First Published:1 Feb 2022, 02:17 PM IST
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