Budget 2018 and its Possible Impact on Stock Market

The future movements in the markets over the next month or so will be decided by the contents of the Budget 2018.

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Lately both the major indices in India has scaled record heights, the Sensex has crossed the 36000 mark whereas the Nifty has also breached the 11000 level.The future movements in the markets over the next month or so will be decided by the contents of the Budget 2018. Although in the period leading up to the Budget utmost secrecy is observed but some information does filter through, other than that rumours and informed speculations are also what that drives the sentiments of the markets. Generally there are negative sentiments and expectations attached to the Budget thus investors usually postpone buying decisions before the Budget is tabled. Thus in the past mostly the benchmark index has fallen in the month leading up to the Budget and the markets both Sensex and Nifty have seen gains after the Budget has been delivered. This has been the trend in six out of the last nine Budgets. But the said trend has now been broken with the markets touching new heights just before the Budget 2018. Few numbers in the Budget 2018 such as that of fiscal deficit and disinvestment targets will have a major impact on the direction of the bourses. Experts believe that the days leading up to the Budget the markets will see a rally due to various anticipations and right after the Budget profit booking in the stock market may be seen. However, there will be opportunities for investment in select sectors also.

Expected Impact of Budget 2018 on Stock Market

It is largely expected that the Budget 2018 will be neutral for the stock markets thus no sharp surge or dip in Indian indices is being expected. As the said Budget is the last full budget before the Lok Sabha elections in 2019 and before multiple assembly elections in 2018 no major reforms are expected to be undertaken. Experts believe that in the near future with record FII inflows, soaring investments in mutual fund, low interest rates and a strong rupee against the dollar the outlook in the markets is expected to remain positive. Although on the day of the Budget 2018 and the 48 to 72 hours period after the same the markets are expected to remain extremely volatile. In the Budget 2018 the markets would like to see a bump up in Government’s revenues to tackle fiscal deficit but most likely the fiscal deficit target of 3.2% of the GDP would be missed by the Government.

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Budget 2018 LIVE: BJP’s loyal salaried class wants tax exemptions raised

Will the Modi govt’s last full Union Budget before general elections 2019 will be a populist one? All eyes are now on FM Arun Jaitley’s Budget speech on Thursday

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As Finance Minister Arun Jaitley gets set to present Budget 2018, the last full Union Budget of the Narendra Modi-led central government in its present term, there is an anticipation that he will somewhat shed his prudent stance in favour of a more populist stance one. The view emanates from the fact that this will be the finance minister’s last chance to please the voters through a Budget 2018 before 2019 general elections.

Populism in the government’s annual budget could assume policy decisions like lower tax rate for the salaried class, lower corporate tax rates in tune with Trump’s benevolence for the corporate class in the US and big bonanzas for India’s farmers.

If the Economic Survey, prepared by Chief Economic Advisor Arvind Subramanian and his team is anything to go by, Jaitley has all the ammunition that he needs to sound the election bugle for 2019 with this Budget. All he needs to do is lock, load and fire.

CATCH ALL THE LIVE UPDATES : Budget 2018 Live

Budget 2018: Govt to ‘leave no stone unturned’ in passing triple talaq Bill

The government met leaders of political parties at a meeting in Parliament House on Sunday and also sought their cooperation

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The government on Sunday said it would “leave no stone unturned” to ensure the passage of the triple talaq Bill in the Budget session of Parliament starting Monday, and asserted that it would talk to various parties for a consensus on the issue.

The government met leaders of political parties at a meeting in Parliament House on Sunday and also sought their cooperation in ensuring the success of the crucial session during which the Union Budget would be presented.

The all-party meeting was attended by Prime Minister Narendra Modi, Union ministers Rajnath Singh, Arun Jaitley and Ananth Kumar, besides leaders of the Opposition and other parties.

Speaker Sumitra Mahajan also held a dinner meeting with party leaders for the session’s smooth functioning and said the leaders had assured her of their cooperation.

ALSO READ: Centre to push for passage of triple talaq Bill in Budget Session

Addressing the floor leaders of the various parties in the Rajya Sabha and Lok Sabha, Prime Minister Modi said the government accords importance to issues raised by the parties and urged their leaders to create a “constructive atmosphere for the national good”.

Parliamentary Affairs Minister Kumar described the meeting as “fruitful” and said the prime minister urged the leaders of the parties to make the session successful.

Read More : Budget 2018

Budget 2018: Has Modi govt delivered on its promise of urban development?

BJP govt faces this situation as it heads into its last full budget before general elections in 2019

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With India’s urban population rising by 11 million annually–the equivalent of adding a Bengaluru every year–and urban voters forming a major vote base for the Bharatiya Janata Party (BJP), making money and management available for cities would appear to be a priority.

But promises of smart cities and managing growth to provide jobs and housing for the coming urban population jump from 377 million in 2011 to 600 million in 2031–with 20% of this growth expected to come from rural distress and migration–are, currently, displaying little progress.

Less than a quarter of central funds for four major national programmes for India’s urban renewal have been used, according to an IndiaSpend analysis of government data. Since urban development is a state subject, state governments implement these national schemes with central assistance playing a key role. State and urban bodies are also expected to finance a portion of the program on their own by raising funds from other sources.

A further disaggregation of central funds data from the ministry of housing and urban affairs reveals:

  • Upto February 2017–the last release of data–no more than 3% of smart-city projects were completed and 12% of central funds were released;
  • With two years to deadline, the Centre–as of July 2017, the last release of data–was still to release 87% of funds for urban infrastructure in 500 cities and towns;
  • Upto July 2017, 95.4% of central funds sanctioned for upgrading 12 heritage cities were unused, as the programme’s November 2018 deadline approaches;
  • Work on 93% of sanctioned houses–meant to meet 16% of India’s urban housing shortage–was incomplete as of January 2018. The target of housing for all: 2022;
  • Little is known of how state governments are raising funds and implementing these programmes.

This is the situation facing the BJP government, as it heads into its last full budget before general elections in 2019, at a time when Prime Minister Narendra Modi has promised 100 smart cities and housing for all by 2022.

The urban sector will not just watch how much money is set aside in the 2018-19 budget but also how it is used, as the National Democratic Alliance (NDA) tries to deliver on its promises of urban development and rejuvenation ahead of upcoming assembly elections in eight states and the 2019 general elections.

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Indian cities and towns will become hubs of growth over the next two decades, finance minister Arun Jaitley said on December 2, 2016, acknowledging “a lack of ideas” on how to prepare India for its coming urban explosion.

Besides ideas, implementation of what exists is stuttering, as the much-publicised Smart Cities Mission reveals.

Smart Cities Mission: 3% of projects complete

Click Here To Read More : Budget 2018

Budget 2018: Note ban, GST raise hopes of radical steps by FM Arun Jaitley

In the Union Budget 2018-19, Finance Minister Arun Jaitley could reinforce his Modi govt’s thrust on skill enhancement to aid job creation to help India effectively leverage its demographic dividend

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The upcoming Budget 2018, which Finance Minister Arun Jaitley will present on February 1, is expected to be more significant than other recent ones, especially as it is coming after a year full of radical reforms by the Narendra Modi government such as demonetization of high-value currency notes, implementation of the goods and services tax (GST) and a new bankruptcy regime.

The year 2017 ended on a high with gross domestic product (GDP) growth in the July-September quarter standing at 6.3%, indicating the significant impact of the two structural reforms — GST and demonetisation — is now behind us and, hopefully we could expect an upward growth in 2018.

I am hopeful that this year, too, there will be a thrust on skill enhancement to aid job creation. This would us leverage our demographic dividend more effectively.

Technological disruptions in the form of artificial intelligence and machine learning are a reality now, and they have been shaping the narrative of India’s recent economic growth and digital transformation. So, if we truly need to change the game, there needs to be a singular focus on rolling out initiatives to boost the adoption of technology for education and skilling, and infusing a new breath of life into our vocational education courses to meet the aspirations of new India through public-private partnerships.

There are hopes from the central government to further the revival of the economy. Through initiatives like the ‘Make in India’ programme, it has not only boosted the confidence of local businesses, but also increased the room to facilitate more exports from the country. This will, in turn, also support creation of jobs in the manufacturing and infrastructure sectors, strengthening the backbone of our economy.

Budget 2018: Centre earmarks Rs 10 bn for fixing Delhi-NCR’s pollution woes

The budgetary allocation aims to subsidise the purchase of machinery by farmers in a bid to curb stubble burning

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The severity of Delhi’s air pollution woes has earned the issue a place in the Centre’s allocations in Budget 2018. According to reports, an amount of Rs 10 billion (1,000 crore) will be allocated under Budget 2018 to combat problems like stubble burning, which has been attributed as a major cause for Delhi’s now-notorious air quality.

In an effort to clean up the capital’s air, or at least make it more breathable, and end the residents’ annual exercise of choking under a blanket of smog, the Centre has decided to earmark Rs 10 billion (1,000 crore) in the upcoming Budget to curb the practice of stubble burning in Delhi’s neighbouring states like Punjab and Haryana, the Times of India reported on Thursday.

ALSO READ: India among five worst nations in curbing environmental pollution

How will the Centre put a stop to stubble burning, an issue that proved to be contentious and saw the Delhi and Punjab governments juggle blame last year, and get farmers to find better ways to dispose of agricultural waste? The answer lies in subsidies for said farmers. The national daily reported that Additional Solicitor General A N S Nadkarni informed a Bench of Justices Madan B Lokur and Deepak Gupta that the Centre would provide subsidies to farmers to purchase machines like Happy Seeder and Rotavators. These machines are meant to help farmers dispose of farm residue without burning it. According to the report, these machines sow wheat into the soil while simultaneously cutting and lifting rice straw. As a result, the stubble remains in the fields without hampering the sowing of a new crop.

According to recommendations, individual farmers who purchase the machines will receive a subsidy of 50 per cent of the purchase price, the report said. The subsidy will be distributed by means of a direct benefit transfer mechanism. Further, a subsidy of 75 per cent of the machinery’s cost will be given to cooperative societies, gram panchayats, and farmer groups, the report added.

Union Budget 2018: Impact on Smartphones in India

Mr. Kalirona stated that if the government supports the manufacturing sector of mobile industry, it would support our Prime Minister’s vision of “Make in India”.

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The entire nation has their eyes set on the fifth and last full-fledged Union Budget in Narendra Modi’s government to be presented in Lok Sabha. This Union Budget will be presented on February 1, 2018, by Mr. Arun Jaitley, our Finance Minister. This Union Budget has a lot of significance as it is presented after two big financial decisions made in Mr. Modi’s government- Demonetization and GST. The previous year’s budget was also very unique as railway budget and general budget were presented on the same day.

Everybody is expecting some statement to be made about their respective sector in this Union Budget. There is anticipation that mobile phones may become cheaper after February 1, 2018.

Union Budget 2018: Smartphones to go cheaper?

Mobile phones are seen in every common man’s possession, especially youth. Youth is expecting cheaper handsets for use. The CEO and Director of COMIO Smartphones, Sanjay Kalirona said that the GST has to be reduced from 12%-5% and offer tax reductions to promote the mobile industry market in India. This should help in making mobiles affordable to the common man, especially youth. All the industrialists are looking up to Union Budget’s support for acceptable budgetary allocation for the growth of the mobile industry.

Relief For Manufacturer of Smartphones?

India is the fastest growing mobile market in the world. The CEO COMIO also mentioned that our country has a lot of potential for component manufacture and building a self-sufficient ecosystem. Read More