Budget 2024 Highlights | How is BUDGET 2024? | Parimal Ade

Hey, hi friends. So today we will take a live session on the budget. Obviously, it was unannounced. So I thought I will make a video at night. But a lot of things to share on this particular budget and that's why I thought let's do a live session. So I will try and explain how was today's budget and highlights overall thought process, what is going on in government, we will understand about that and then what do we think about it effectively overall because we are more interested in what will ha

ppen in the market and in equities so we will try to understand that too here friends so in highlights, the most important highlight of the budget today is the path of fiscal consolidation that the government has taken I think that is phenomenal so last year when the government said that the target of the fiscal deficit is 5.9% of the GDP actually now they have revised it to 5.8% yesterday also we saw how from April month to December month the numbers of fiscal deficit came so 55% of the total y

ear's target was that number only it means that it was already looking like it could be revised somewhere. So that's what they have done. The fiscal deficit they have revised for this financial year. That is FY24. That means from 31st of March 2024. So that they have revised it to 5.8%. And the best part is that next year's fiscal deficit target of the government is at 5.1%. So for FY25, they have taken their target of fiscal deficit at 5.1% so for FY25 they have taken their target of FD at 5.1%

so I think this is a phenomenal target they have taken and if they can achieve this target so that is going to play very very well for the overall Indian government securities or bond markets so we have already seen I don't know how much is going on currently but when this budget is over after that GSE yields have gone down by 0.07 to 0.08% what does this mean? Now you will say what does this mean? Ultimately how it is going to impact our stock market investments because that is what we are mos

t interested in that how can it be linked to the stock market so because that is what we are most interested in, how can it be linked to the stock market. So the point is that without RBI cutting any policy rate, that is repo rate without cutting that, actually if your 10-year GSEC yield comes down, which is a benchmark yield for lot of loans, or if the loans, that is borrowings, if the government securities yield is currently trading at 7% then the good corporates or any corporate can take mone

y from that that the one who has a yield of 0.5% and the one who has a yield of 1% kind of that borrowing cost can be there for the corporates so if the one who has the yield goes down from here that is going to play out really well so ultimately interest cost is going to go down so remember one thing if the government's borrowing is less from here and macroeconomic situation is good inflation numbers are good so I will not be surprised if rate cuts will also happen yesterday we saw the comment

of Federal Reserve so there in this calendar year, means their calendar year is financial year so in this calendar year they are expecting rate cuts of 75 basis points so if that happens there then I think our situation is already good with them from their point of view. Our rate cuts could have been done earlier but this is a compulsion. We are living in a coupled world where if there are high interest rates in the developed world, then here also a rate cut, our fiscal situation will be good. F

iscal consolidation, the fiscal path for consolidation, we will keep going on that path. So there will be a rate cut here too. And ultimately if there is a rate cut, then interest cost, interest burden of corporates will go down. Obviously, if interest costs will go down, then margins, profit margins will improve. If interest costs go down, then individuals can also take more loans there. If the inflation is down, then disposable income will also remain more with people. So that will also help i

n more and more consumption. So I think all these things will work out really well. So it may be today you will think that there are no big announcements typically you have an expectation that if we are given benefits for income tax then it would be good there are no changes in direct and indirect taxes in a way, looks like government is quite confident that they will give a budget in July. But there was no populist kind of measure in this particular budget. And nothing more populist. I think th

at is not good for the long-term economy. It is possible that populist people will take a measure and immediately get money. But it can be good for the short-term. Empowering for long term, empowering is the most important thing, so I think on that particular path they are going on, so that has a positive impact on the market and stock prices so I think that is ultimately the most positive thing I found in this rest if we talk about the point of view of sectors then definitely the government has

focused on housing so they have said new housing plan for middle class. Details will come now. And 2 crore houses to be built under PM Awas Yojana. They have also announced this. So these things are very positive for real estate companies, cement companies and housing finance companies. So definitely I think we will have to look into that. As soon as we understand the plan and the analysis comes out, we will have to look into that that means as soon as we understand more plan, the whole analysi

s will come out, so we will come to know from the point of view of health care, if you talk about it, then health care facilities under Ayushman Bharat will be extended to all ASHA workers, Anganwadi workers, they have said, the government plans to set up hospitals in all districts, they have also said this, so there is a little focus on health care spending, the number has not clear, but let's see vaccination of 9 to 14 year old girls for cervical cancer, I think these are the things on which t

he health care side is focused Government is planning to do high density decongestion of energy, mineral and cement to get dedicated corridor. So reducing the logistics time is also very important. 40,000 normal train bogies will be converted into high speed one day Bharat once. So obviously this is also a positive. So here you will have to find out which are the companies that are working here. So I think that is going to play really well for those companies. From the point of view of tourism a

lso the government has said interest free loans to states to promote tourism. The government has also said this. So funds will be provided for development of tourism in Lakshadweep also. We saw how Maldives play out. According to that if we promote local tourism here more, that is going to be really good. Even for spiritual tourism, the government has said. And in a way, a competition will be put between the states and the states will also get a rating that how and which tourism points are you i

dentifying and how are you developing it and the government has also planned to focus on spiritual tourism here so that's a positive, if you see from the angle of tourism then from the angle of consumption, I think this is an interesting thing to watch so you should also keep an eye on this. The target of disinvestment this year which they had set as 50,000 crores earlier, I think they have taken it down to 30,000 crores. I am talking about FI24. And in FI25, the target of disinvestment is of 50

,000 crores. I don't know, I didn't hear it in the speech. But this number is coming up, so it could be that I missed some numbers. When I was reading some fine reports, I understood this number there. So 50,000 crore rupees and we are not going to talk much about it. Looking at the tax collections, if we talk about direct tax collections, so I think phenomenal tax collections are happening. So, I mean, the overachievement is happening here. So I think that is an interesting thing. It was like t

hat if from 27-28% personal income tax collection has grown, then can some benefits be given there? In a way, it could have been a major populist kind of outflow but the government did not do that. The compliance is increasing, the number of taxpayers is increasing. It is the highest in the lower slab. But still, I think that compliance is growing. We have already seen the way tourism is happening, people are spending money outside so many cheques and balances have been set by the government so

from that point of view, government is trying to keep a close watch on these things so let's see, if we understand a little more about fiscal consolidation how it can ultimately impact, so the impact of fiscal consolidation will that less borrowing from the government, so if the fiscal deficit is less, then the government will have to reduce borrowing and if the government will do less borrowing and we have already seen how in the banking sector, the last leg of the credit growth, in the sense o

f the recent past growth, that was also come on corporates. So, companies will start lending. Specifically, I am going to watch the PSU banks because there there can be some government mandates and push from the government that you will have to lend it to the corporates because from the government side, last year we had already seen that from 33% or 35% they gave the growth of CapEx, public CapEx. We had seen that it was 10 lakh crore last year. This year they have increased 11.1% from there. An

d now this year they are going to spend 11.1 lakh crore rupees. So the government has kept its commitment there. But the growth number has decreased. Still 11.1% is not a small number. So now the government is wanting that the heavy lifting that has to be done by corporates should be done by corporates only that is from private players, capex should get a little more push and if that comes, then I think it can be a very good mixture. Public spending is already there. 11.1 lakh crore rupees is no

t a small number and even if the nominal GDP of this year is around 14%, the number is less in comparison to that. But I think that overachievement in the credit could be from the private players. So now that is what we will have to see. Let's see. I think the main budget of FY25 hasn't come yet. So there can be more focus on PLI schemes can be focused on that as well. There can be more sector specific announcements there. That we will have to watch. So let's see, I think overall, not being a ve

ry populist budget, I think that is a very positive. Focus on fiscal consolidation, that is also very positive. And because of that, lower borrowings and lower bond yields, lower interest, I think that and lower interest are the main theme for FY25. I hope you liked this video. It is a live session so I am not going to take too many questions. But what is more important is that this budget seems right. Being an interim budget and before election budget. So I think that's a big positive which we

should take out of that. So few questions. People are asking about Paytm. I had covered this in the news this morning that when such governance related issues happen, and if there are some issues related to governance then the reactions will be very sharp and if big institutional research houses have also taken out reports on it then I think there will be a lot of selling pressure so not a good sign for Paytm so that is for sure Can you also spend one minute on Fed rates? I think I had covered t

his in the news this morning too. The Fed has said that this year there can be 3 red cuts. Though they have not committed on when they will be in March. But I think it will happen. They are comfortable with the balance between inflation numbers also, employment numbers also and GDP growth numbers also. So I think that is very important. So if it happens, it is going to be good. Once developed market starts cutting the rates, I think then the emerging markets will be quite comfortable to cut the

rates. Take on PSUs. I think PSUs overall, I think the focus of the government is on PSUs. They have taken the target that only in strategic sectors, the government would like to have more stake. Otherwise, they would like to make everything private. There are not many actions on that because getting the right price is another thing. But looking at the current market situation and the profitability the companies are generating, I think the government is more happy with the dividends only. So tha

t's why there is not much talk about the numbers of disinvestment. So that is one thing we will have to see. Let's see, I think weBI can also get good dividends. Normal PSUs are also getting good dividends. The main thing is that the tax collection is phenomenal. So that is one thing. Gaurav is asking, what is your view on the finance sector? So I think as I told earlier, if the yields are going down, if the government's borrowing is less then that will play really well for the finance sector if

the cost of funds come down then that will add good impetus to their NIMs Power sector, yes, I forgot to mention about that. I think they have focused on solar installations, more than 1 crore. So definitely companies like Tata power or any company involved in solar roof tops, I think for them it is a very good news. So let's see how it impacts. for them it is a very very good news so we will see its impact so i think a lot of points i have covered so these are highlights of budget so i don't w

ant to make this video too big but we will come up with few more videos today regarding which stocks can be impacted like the seafood segment, the government has focused on that, the number has increased so avanti feeds has benefited from that so all those things, we will try, we will try to cover some stocks today so friends, the rest is the budget so the budget promo code is also active for you guys if you have an interesting budget, then definitely there should be an interesting coupon code s

o 60% discount is available on our research products so budget, BUDGET, use this promo code and get 60% discount and you will also get an e-learning course with it for free combo offers or for 3 years subscription if you go then the discount should be on a higher side I hope you will visit our website investyadne. in so for such videos, like, share and subscribe to the channel see you in the next video Jai Hind