Budget 2021 Live Updates: Sensex, Nifty Post Best Budget-Day Gains Since 1997
Budget Missing Clear Roadmap On Innovation, Says Pawan Goenka
The budget didn’t have a clear roadmap on how india will become an Innovation and R&D driven economy, says Pawan Goenka, MD & CEO, Mahindra & Mahindra
It was one of the five pillars in the budget but there wasn’t enough to create a roadmap, which is important for long term.
“For India to become aatmanirbhar, its own innovation is a must,” he said.
Speaking about the overall big numbers, the budget delivers on what most industry leaders had expected from the budget. It facilitates demand and the whole emphasis is on the growth. The ‘head and heart’ of the finance minister’s and those who made was in the right place.
There is not too much sector specific, but when GDP numbers go up all the sectors will benefitAll the expenditures are focused on economic growth and there are very few handouts that have been added, says Goenka.
On Simplification Of Regulations
- Hope government takes a very serious stand in simplifying regulations, says Goenka.
- Regulations creates an unnecessary burden on the industry and makes it non competitive in many aspects.
Urges Delay Of Scrappage Policy
- Pawan Goenka urges government to delay the upcoming regulations for the auto industry by 12 to 18 months, unless essential.
- Auto industry is currently bruised from BS6 norms and Covid impact
- We need little bit time before we get the burden of new regulations.
- We can’t afford more cost increase because it will make our business unviable.
'This Is A Bold Budget,' Says Uday Kotak
- ARC is an intermediate aggregate structure
- ARC will be less on ultimate resolution and more on nature of aggregator
- I don’t think stimulus on demand alone will help us without the supply side being addressed
- As you go for an aggressive borrowing program, this will require deft management between the government and RBI
- On the asset side DIF needs to get comfort that final end payer pays the money
- It is a transparent fiscal deficit
- Commend the government on keeping a stable tax regime
Finance Minister Nirmala Sitharaman's Press Conference
- See opportunity for private sector to set up its own DFIs
- One sole DFI cannot meet India’s needs
- Partly-goverenment funded DFI with private capital should compete with private DFIs
- FY22 fiscal deficit will definitely be within 6.8%, may even be lower, as per DEA Secretary Tarun Bajaj
- Agriculture Infrastructure & Development Cess was introduced without having the end consumer pay more on any category.
- We will enter the global indices in the coming year for our borrowings: Economic Affairs Secretary Tarun Bajaj
Sensex, Nifty Erase Over 60% Of The Six-Day Drop
Best Budget-Day Rally Since 1997!
Indian equities cheered Finance Minister Nirmala Sitharaman's budget announcements, not only snapping a six-day losing streak, but also posting their best single-day gain since April last year.
The S&P BSE Sensex ended 5% higher at 48,600 while the NSE Nifty 50 index gained 4.7% to end at 14,281. Both benchmarks saw their best budget-day gain since the Union Budget of 1997, when they had gained over 6% each. 45 out of the 50 index constituents ended with gains while four of them saw double-digit gains.
Among the sectoral indices, the Nifty Bank index gained over 2,500 points or 8.3% to end at a record high of 33,089. The Nifty PSU Bank index saw its best single-day gain since March last year, ending with gains of 7.8%.
Other sectoral gainers were the Nifty Auto index, which gained 4.2% and the Nifty Metal index which saw gains of 4.8%.
The Nifty Pharma index was the only sectoral laggard in today's session, ending 0.5% lower.
Broader markets too saw gains but were modest in comparison to the benchmarks. The Nifty Midcap index gained 3.3% while the Smallcap index rose 2% at the close of trade.
The India Volatility Index fell the most in two months, ending 8% lower at 23.32.
1,357 stocks on the NSE ended with gains while 567 stocks posted losses.