Stock Market Live on Budget 2019: Sensex, Nifty upset over Nirmala Sitharaman Bahikhata proposals
Stock Market Live on Budget 2019: The stock market is overall bullish and it may show 12,100 to 12,300 levels before budget as the pre-budget rally is still expected to continue, say experts.
Stock Market Live on Budget 2019: Today is Budget 2019 presentation day and the stock markets are keenly poised for an upward move on the cues thrown up by the Finance Minister Nirmala Sitharaman - she will present Modi 2.0 Government's maiden budget. Market experts are bullish that the market would break the psychological levels which it has been testing for the last two trading sessions. As per their opinion, the Nifty index may soar to 12,100 to 12,300 levels before Nirmala Sitharaman begins her budget speech, while Sensex may break the 40,000 levels. Speaking on the stock market outlook on the budget 2019 day Simi Bhaumik, a SEBI registered technical equity analyst told Zee Business online, "The market is overall bullish and it may show 12,100 to 12,300 levels before budget as the pre-budget rally is still expected to continue. The Bank Nifty has taken strong support at 31,100 and the index is expected to remain above these levels till the budget 2019."
See Zee Business Live TV below:
On Thursday, the Indian indices had managed to sustain its pre-budget rally. The BSE Sensex rose 68 points to 39,908, the 50-stock Nifty added 30 points and closed at 11,946 levels. Bank Nifty index scaled 89 points and closed at 31,471 levels.
Latest Updates
Union Budget 2019 Live: On account of speculations not meeting their expectations, domestic and foreign investors at the Dalal Street indulge in the heavy selloff in the intraday trade session. The BSE Sensex 394 points to 39,513 while the Nifty 50 index nosedived 135 points and closed at 11,811 levels.
Union Budget 2019 Live: It seems that Nirmala Sitharaman's Bahikhata proposals haven't gone down well with the Dalal Street. The BSE Sensex nosedived over 300 points to 39,602 while the Nifty 50 index crashed near 100 points to 11,802 levels.
Union Budget 2019 Live: Sensex, Nifty sink after Nirmala Sitharaman completes the budget speech. BSE Sensex crashed 279 points to 39,628 while Nifty 50 index lost 91 points to 11,855 levels.
Union Budget 2019 Live: Historically speaking, India has been a promoter-driven market and increasing the threshold will ensure wider ownership through institutional investors, more market depth, better price discovery and hopefully will enhance the corporate governance standards — Yogesh Chande, Partner, Shardul Amarchand Mangaldas & Co.
Union Budget 2019 Live: Nirmala Sitharaman announced the Modi 2.0 government's plan to provide Aadhaar Card to NRIs in her budget 2019 speech.
Union Budget 2019 Live: Pension proposal by Finance Miniser Nirmala Sitharaman for near 3 crore retail traders and shopkeepers who have an annual turnover of less than Rs 1.5 crore.
A combination of global concerns (US-China trade tensions and US-Iran geopolitical flare-ups) and domestic concerns (flagging demand environment for consumption sectors, continued rural distress and poor corporate governance as evident from recent auditor resignations) led to a sharp MoM drop in FPI inflows ($149mn in June from $1.4bn in May) and a decline in India’s equity markets by 1.1%. There are indications to suggest the world is moving towards a dovish policy stance, which would be a key positive for flows — Elara Securities
Union Budget 2019 LIVE: The finance minister Nirmala Sitharaman announces the Modi 2.0 Government's focus on artificial intelligence (AI) and changes in labour law while delivering her budget 2019 speech.
Union Budget 2019 LIVE: The finance minister Nirmala Sitharaman announces the Modi 2.0 Government's plan to bring new Education Policy while delivering her budget 2019 speech.
Union Budget 2019 LIVE: The finance minister Nirmala Sitharaman has announced steps for capital markets, which should help in further development. Will allow FPI and FII investments in debt securities issued by NBFCs, as well as REIT’s and INVIT’s. Increasing minimum public sharing holding or free to 35% from 25%. Rajiv Singh, CEO at Karvy Stock Broking
Union Budget 2019 LIVE: Finance Minister Nirmala Sitharaman starts the union budget 2019 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, Spokesperson, Karvy Stock Broking
Union Budget 2019 LIVE: FM Nirmala Sitharaman informs parliament in Union Budget 2019 speech that earlier it used to take314 days to build a home while now it takes only 114 days.
Metal, power, oil and gas stocks under pressure during Finance Minister Nirmala Sitharaman's Bahikhata speech.
Minimum public shareholding to increase. Now the minimum public shareholding cap proposal in budget 2019 is 35 per cent.
Sensex, Nifty becomes cautions as FM Nirmala Sitharaman begins her Bahikhata speech. Nifty trading in the range of 11,910 to 11,960.
FM Sitharaman vows to bring Tier-2 and Tier-3 cities on the air route through UDAN scheme.
Stocks that witnessed selloff at Nifty
Yes Bank and ONGC are the major stocks that witnessed heavy selloff in Nifty 50 index.
India third largest country in terms of purchasing power capacity, inform FM Nirmala Sitharaman while presenting her 'Bahikhata 2019' in the parliament.
Finance Minister Nirmala Sitharaman re-iterates the Modi 2.0 Government to make India a $5 trillion economy by 2025.
Nirmala Sitharaman begins her speech informing the parliament that Indian government plans to make India a $5 trillion economy in the next few years.
FM Nirmala Sitharaman begins her 'Bahikhata' speech with vow to 'majboot desh ke liye majboot nagrik.'
"The government could consider increasing the threshold limit of Long Term Capital Gains (LTCG) on sale of listed equity shares and units of equity-oriented mutual funds from INR 1 lakh per financial year to INR 2 Lakhs per financial year. Reducing the holding period of debt funds by bringing down the cut-off limit to qualify for Long Term Capital Gains (LTCG) from three years to one year," Tarun Garg – Manager, DHS told Zee Business Online.
Power major Reliance Infrastructure share price crashed 2.56 per cent, NTPC shares went down 2.62 per cent, JSW Energy counter went down 1.25 per cent while Siemens stocks went down 1.58 per cent.
Power stocks nosedive ahead of Finance Minister Nirmala Sitharaman's budget speech.
Oil and gas witnessed heavy selloff as Nirmala Sitharaman is about to table the 'Bahikhata' 2019 without the briefcase. Oil and gas major Bharat Petroleum Corporation Ltd or BPCL share price crashed 1.95 per cent, Hindustan Petroleum Corporation Ltd or HPCL counter went down 2.41 per cent, Indian Oil Corporation Ltd or IOCL scrip dipped 2.2 per cent while ONGC stock nosedived 2.7 per cent.
"Market reaction to the Union Budget could result in the volatile move across the board. Since Nifty is trading closer to its crucial hurdle of 12,000, we suggest keeping extra caution in long trades. In case of decline, 11,800 would act as a strong cushion," said Jayant Manglik, president - retail distribution at Religare Broking Ltd.
Finance Minister Nirmala breaks old precedence. No budget briefcase from this year.
The Modi 2.0 Government may change the Union Budget nomenclature to 'Bahikhata,' reveals Zee Business TV.
Railway Budget 2019: Expect semi high speed trains on more routes, Improved network capacity.
Please watch the video below:
Finance Minister Nirmala Sitharaman reaches Rashtrapati Bhawan with her team and briefs President about the Union budget 2019.
Growth is an area, which we are sure is top on this governments priority and this budget should address that. One key sector which we believe needs to address is the residential real estate sector and the expectation is that this budget would provide a much-needed fillip to the sector. It generates large scale employment as well as helps multiple industries, who are invested in India — Parag Kulkarni, Managing Director, AO Smith India
Capital Goods shares witness fresh buying in the morning session. Capital Goods major Hindustan Aeronautics share price went 1 per cent northward, shares of Schaeffler India shot up 1.8 per cent while Larsen & Toubro counter added 0.77 per cent.
Realty stocks led the bull run as BSE Realty index jumps near 0.6 per cent. Realty major Oberoi Realty share price shot up 1.73 per cent, Sobha stocks climbed 1.74 per cent while Housing Development & Infrastructure share price skyrocketed 5.96 per cent.
Big ticket announcement ahead
Kisan Samman Nidhi package may get increased from Rs 6,000 and separate pension scheme for the marginal farmers may be announced in budget 2019.
Top losing stocks
KRBL, Cox & Kings, Thomas Cook (I), Yes Bank and Elgi Equipments are the top losing stocks in the intraday trade. KRBL share price crashed 8.5 per cent, Cox & Kings nosedived 4.87 per cent, shares of Thomas Cook (I) dipped 2.65 per cent while Yes Bank and Elgi Equipments shares were in the red zone to the tune of near 2 per cent.
Top gaining stocks
Reliance Communications, Manpasand Beverage, TTK Prestige, Quess Corp and Jain Irrigation are the top five gaining stocks in the early morning trade session. Reliance Communications share price rises 4.6 per cent, Manpasand Beverage counter rose 4.53 per cent, TTK Prestige added 3.9 per cent while Jain Irrigation rose 2.94 pre cent.
Stock market opening bell
The stock market of India extends the pre-budget rally. BSE Sensex climbs 40K, gains 114 points. The Nifty 50 index rose 32 points to 11,779 levels.
Budget 2019 expectations by TV manufacturers
Arjun Bajaj - CEO and Founder - Daiwa said, "We hope the government will reduce the GST for bigger sizer to 18% from 28%. Secondly, the government should make the open cell duty to zero which is 5% today. Open-cell is not made locally in India and is imported. The 5% duty on a product which is not made locally is too heavy and this part accounts for 70% of the product value.”
Finance Minister Nirmala Sitharaman heads for the Rashtrapati Bhawan to meet President Ramnath Kovind and give him a brief about the budget 2019. Her junior minister in the Finance Ministry Anurag Thakur accompanies her.
Ease in crude oil prices: Crude oil price dips more than 1 per cent as the NYMEX crude price slips in $56-57 per barrel range.
INR vs USD: Indian rupee climbs 8 paise against the US dollar at the Forex market.
Budget 2019 expectations by Startups
Rachit Chawla, Founder & CEO, Finway said, "We expect ease in regulatory norms from this Budget as a start-up has to go through numerous compliances that are put in place by various regulatory bodies. Start-ups are also facing a knowledge gap as there are multiple points of contact. I am not saying that compliances are not important but it becomes tedious, time-consuming and costly. A single window clearance is expected from the Government that will smoothen the process and saves cost for start-ups. The process of smoothening the tax issues in funding was started and we expect that there will be the fast implementation of the procedures to ease startup funding. The momentum started with 'Start-up India' that enabled self-certification, income tax exemptions, rebate in filing patents, etc and we hope in this budget further boost will be given to the start-up ecosystem."
Budget 2019 share to buy
As per Vivek Ranjan Misra, Head of Fundamental Research at Karvy Stock Broking MOIL is the fifth and last budget stock that he is recommending to the stock market investors. His reasons for picking Mahindra and Mahindra are given below.
MOIL: About 95% of manganese ore is used in steel manufacturing. Thus, the demand outlook for manganese ore is directly linked with the demand outlook for steel. Demand for steel has suffered in recent months because of an overall slowdown in construction and manufacturing activities as a result of a slowdown in CapEx activities ahead of the general election, a sharp contraction in the auto sector. Going forward, the economy should recover with a bit of help from the government, largely via a stimulus from the budget. The company trades at a forward PER of 7.7, which implies attractive valuations.
Budget 2019 share to buy
As per Vivek Ranjan Misra, Head of Fundamental Research at Karvy Stock Broking KEC International is the fourth budget stock that he is recommending to the stock market investors. His reasons for picking Mahindra and Mahindra are given below.
KEC International: We believe the next focus on the power sector will focus on transmission and distribution and KEC international will be a beneficiary. We expect this business to grow at 15-20% in FY20. Competitive intensity has also reduced as liquidity crunch is likely to lead to consolidation. Also, non T&D business has been growing rapidly. Railways and Civil are segments that can benefit from budget announcement and government focus on infrastructure in general. The existing strong order book to boost revenues at 14% CAGR during FY19-21E, and valuations are favourable.
Budget 2019 share to buy
As per Vivek Ranjan Misra, Head of Fundamental Research at Karvy Stock Broking KRBL is the third budget stock that he is recommending to the stock market investors. His reasons for picking Mahindra and Mahindra are given below.
KRBL: The stock will benefit from the push to promote food processing industry and the rural sector in general. KRBL Limited posted robust consolidated operating performance in FY19 on year on year basis on the back of strong sales and realization in domestic and export markets. It's export markets, mainly the Middle East are performing well. Strong domestic and export demand for Basmati rice to accelerate sales and thereby profitability for KRBL. We believe that KRBL with good brand recall will benefit from an increase in food exports. Valuations are attractive at a forward PER of 12.8x.
Budget 2019 expectations by FMCG Food business:
Jeevash Vaid, Founder at Kuppies says, "As an Entrepreneur in FMCG Food Business, we hope that the government reduces the GST from an average of 18% to 12% for essential frozen food items. The restaurants are paying only 5% GST whereby everyday packaged eating items should also be reduced. We would like to further see some more encouraging policies favoring the Frozen Food Industry since Frozen foods are the best form of preserving the food items."
Stocks in focus on Budget 2019:
Ahead of the presentation of the Union Budget 2019, the domestic markets closed on a positive note on Thursday, July 4, 2019. But, there were certain stocks that made news after the markets were closed for trading and can impact the market after they reopen for trading purposes on Friday, July 5, 2019. Here is a list of five such stocks:
Jet Airways: Ministry of Corporate Affairs (MCA) on Thursday ordered Serious Fraud Investigation Office (SFIO) to carry out the investigation into alleged mismanagement/siphoning of funds and unspecified financial irregularities at Jet Airways, which halted operations in April 2019 after running out of cash.
Maruti: Competition Commission of India (CCI) on Thursday ordered an investigation into allegations that Maruti Suzuki controls the resale price maintenance arrangement with dealers. India’s antitrust body has said that it is looking into allegations that Maruti forces its dealers to limit the discounts they offer, effectively stifling competition among them and harming the consumers. Resale price maintenance refers to an arrangement between a buyer and seller wherein the resale price is stipulated by the seller. The CCI has now asked its investigations unit to complete the probe within 150 days.
KRBL Limited: The Enforcement Directorate (ED) has attached properties worth Rs15.32 crore under Prevention of Money Laundering Act, 2002 (PMLA) belonging to KRBL Ltd in connection with 2008 Embraer deal case. The attached assets include land and rice mill factory located at Tehsil Dhuri, District Sangrur, Punjab.
Tata Sponge Iron: Usha Martin has said that it has completed the transfer of the operative iron-ore mine and coal mine under development to Tata Sponge Iron.
Hindalco Industries: European anti-trust has raised objections on Kumar Mangalam Birla’s Hindalco Industries plans to buy aluminum producer Aleris Corp to expand as a supplier to the car industry. Novelis in a statement has said that the European Commission has sent it a statement of objections to proposed purchase. Regulators said in March that they were worried the deal could lead to less choice for consumers and higher prices for aluminum sheets used to make cars.
Budget 2019 expectation of SMEs:
Nidhi Yadav, Creative Head & Founder AKS Clothings says, "The performance of Indian textile and apparel industry is linked to the performance of many small and medium-size businesses which are vendors to big companies. They come in the unorganised sector, and lack of funding for smooth functioning is often a challenge to these labor-intensive companies. In the Interim Budget, the Government has taken many right decisions to help these small businesses. The industry is very optimistic that a single authority for sanctioning and processing GST refunds, which is expected to get implemented soon will help eradicate current complexities in the system and benefit all the small and mid-sized companies in the industry. We hope more of such pro-industry measures that may further help small businesses in overcoming their challenges."
Nidhi went on to add that the present generation of the consumers is switching to virtual markets, so, the Government should give full-fledged industry status to e-commerce and must draft separate and transparent policies for companies operating in e-commerce. Moreover, as digitalisation is the driving fuel for the entire economy, the government should allocate substantial funds to upgrade technology in this sector.
Budget 2019 Retail Industry Expectation:
Puneet-Yatin Jain, Directors ODHNI says, "As labourers and craftsmen who work on sarees are already underpaid and their families are struggling a lot for a decent living. Sarees should be exempted from GST. Many artisans in the industry are reluctant to teach their skills to the young generation as they believe this profession doesn’t provide financial security. If the Government couldn’t restore their morale, it would be a great loss to the industry. Secondly, GST on readymade garments is still 12 per cent, which is quite high amidst rising rentals of commercial places in the urban areas." He said that this high cost is pruning the profit margin of retailers and eventually, this is adding burden on customers’ pockets. Another disadvantage of high taxes is the growth of counterfeit products in the market. Easy accessibility of these counterfeit products is a big threat to brands which is adversely affecting the entire retail sector.
Budget 2019 expectation of health and medical sector:
Ravi Mathur, CEO GS1 India say, "India needs to adopt GS1 standards in order to enhance patient safety, eliminate medication errors, and put in place a track & trace system for immediate product recalls, counterfeit detection & authentication of medicines & medical devices. In Union budget 2019, the Indian healthcare sector could be incentivized for adopting global practices & standards which enable counterfeit detection & authentication."
Budget 2019 cue from the Economic Survey 2019:
Deepak Jasani, Head Retail Research, HDFC securities say, "The Survey lays out an ambitious agenda for behavioural change by applying the principles of behavioural economics to several issues including gender equality, a healthy and beautiful India, savings, tax compliance and credit quality. All these lead us to believe that some major of these issues will be directly/indirectly be dealt with in the Budget documents or speech."
Deepak Jasani goes on to add that expectation levels have been raised from very low levels prevailing so far. It will be interesting to watch as to how the current fiscal impediments are tackled and how much of the vision objectives are immediately put into action.
Top six real estate sector's expectations from budget 2019:
As per ANAROCK Property Consultants top six expectations of the real estate sector are as follows:
1] Re-finance NBFCs: The liquidity crisis is the major factor preventing completion of over 5.6 lakh stalled units across the top 7 cities. For this, the government could possibly increase the finance limits for NBFCs – a major source of funding for developers. This will help revive the sector to a large extent.
2] Increase bank funding to developers: Besides NBFCs, the government must take steps to ensure bank funding to developers as the severe fund crunch is contributing significantly to project delays.
3] Reinstate Input Tax Credit (ITC) in GST: Without ITC benefits, builders are seeing a sizeable drop in their profits and will eventually pass the buck on to buyers in the form of higher prices. With the ITC benefit, property prices will remain under control and thereby boost sales, helping beleaguered developers to overcome some of their financial stress.
4] More tax benefits to homebuyers and investors: While the interim budget in February did try to woo back investors and buyers alike by offering some sops, there need to be more direct benefits by way of reduction in income tax slabs, higher relief on housing loan rates, and an increase in the deduction limit under Section 80C from the current INR 1.5 lakh a year. The fact that the deduction limit under Section 80C was last increased in 2014 after a hiatus of a decade strongly indicates that the government could consider revising it now. Though it will eventually be an added burden on the exchequer, it will help bring back buyers and revive the sector.
5] Provide a stronger infrastructure push to drive growth: The government’s undisputed focus on infra development ultimately bodes well for the real estate sector. It not only boosts the economy but also helps create more employment, which is a major pain-point for the government. Infrastructure deployments need to amplify across both urban and rural India.
6] Attract more investments into real estate: Indian real estate needs to be made more attractive to foreign investors, and the budget is an ideal platform from which to announce further incentives that will attract more foreign investments into Indian real estate.
Government bonds globally held near multi-year lows on Thursday on bets the US Federal Reserve would cut interest rates this month and that other major central banks would embrace the looser monetary policy, pushing world stocks to new 18-month highs.
As per Vivek Ranjan Misra, Head of Fundamental Research at Karvy Stock Broking Mahindra and Mahindra is the second budget stock that he is recommending to the stock market investors. His reasons for picking Mahindra and Mahindra are given below.
Mahindra and Mahindra: Revival of the rural economy, consumption especially discretionary consumption will be a major focus in the budget and beyond and Mahindra & Mahindra will be a major beneficiary. We expect M&M’s overall volumes to grow at 7.1% CAGR, sales at 9.5% CAGR and PAT to grow at CAGR of 2.7% over FY19-21E. Though the growth outlook for tractor industry in FY20 remains uncertain due to unpredictable monsoon performance, any stimulus to the rural sector will be positive for the stock and the management expects domestic tractor market to grow at ~5% in FY20. The stock remains one of the most inexpensive stocks amongst large-cap Auto Companies in India which makes it attractive as well.
As per Vivek Ranjan Misra, Head of Fundamental Research at Karvy Stock Broking Larsen & Toubro is the first budget stock that he is recommending to the stock market investors. His reasons for picking Mahindra and Mahindra are given below.
Larsen & Toubro: we believe Infrastructure will be a major push for the government, which should benefit capital goods stocks, this is a bellwether stock for the sector. The order book in Mar 2019 stood at Rs 2934 Bn spread across sectors. While the domestic private sector witnessed a pickup, public sector orders constituted mainly state government orders. Going forward we expect new orders to pick up with a broad-based recovery in the economy. It has gained a majority stake in Mindtree which should help add significant scale to its hi-tech, CPG, retail and travel verticals. Also, we believe that its excellent execution capabilities and its balance sheet strength place it in a strong position for a Capex cycle rebound.
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