We celebrate many festivals every year. As an investor and trader, we also celebrate many fin-festival every year. One among those is BUDGET.
Every year budget will be announced on February, Due to elections this year finance minister Nirmala Sitaraman presented a interim budget. It was just a budget that to manage government expenses until the next government is formed. On 23/07/2024 our honorable FM Nirmala Sitaraman is presenting 74th union budget. It will be a record seventh consecutive Budget presentation for Ms. Sitharaman.Since 1947, there have been a total of 73 annual budgets, 14 interim budgets and four special budgets, or mini-budgets.
Expectations on this budget as investor/trader
The first expectation is on capital gain tax, if the slab rates are increased you all know how markets may react to it. The proposal given by the committee only considered to increase government revenue by imposing those tax on investors.
Second expectation is on salaried income tax slab, it will be helpful for all the salaried income group of people.
Third expectation is on railway and defense stocks, both industry stocks trading at all time high. We have to wait and see weather this budget will wider the scope of this industry to further move higher or not.
Agriculture reform or any good news on agriculture-based industry can lead to market rally further higher. Taxes on luxury goods and other similar industry (industries which are Veblen goods) can go higher. Government may consider some relaxation on imports and exports in this budget. But, final outcome has to wait and see.
Present market situation
Market is trading near all-time high and all the stocks are also near 52 weeks high. If the budget is negative to market, it will become a good reason for market correction. If its positive it will lead to further door open for market move higher.
-By
VISHAL KUMAR K R
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