Budget 2019 Key takeaways from FM Nirmala Sitharaman's maiden Budget so far

Finance Minister Nirmala Sitharaman presents her maiden Budget in Parliament today. Here are the key takeaways from the Budget speech.

Finance Minister Nirmala Sitharaman presents her maiden Budget in Parliament today. Here are the key takeaways from the Budget speech.

For economy

- Targets to become a $3 trillion economy in FY20, $5 trillion in a few years

- Proposes changes to kick-start domestic and foreign investment

- Will create blueprint for gas, water grids and regional airports

- Govt proposes to expand Swachch Bharat to include solid

  waste management in every village

- Setting up enhanced disinvestment target of Rs 1,05,000 crore in FY20 as       

  against Rs 90,000 crore set in the Interim Budget

- A new series of coins of Re 1, 2, 5, 10 and 20 easily to be made available for public use shortly

Labour reforms

- Govt to streamline multiple labour laws into a set of four labour codes

- To focus on training new age skills like AI, robotics, 3D printing

To boost investment

- To liberalise FDI in aviation, media, animation and insurance intermediaries

- To implement enabling measures to boost International Financial Service     

   Centres (IFSCs)

- To set up a Credit Guarantee Enhancement Corporation

- To initiate steps for electronic fund raising programme for listing of social   enterprises, voluntary organisations

- Considering whether govt holding can go below 51 percent in certain CPSEs     on  case-to-case basis

- To hike statutory limits for foreign investments in some companies

- Expert committee to be set up to make recommendations on

  infrastructure finance

Market reforms:

- Asks SEBI to evaluate hiking minimum public shareholding to 25 percent from   35 percent

- Government will work with exchanges to allow AA bonds to be used as   collateral

- Proposes rationalising and streamlining of KYC (know your customer) norms   for Foreign Portfolio Investors (FPIs) to make it investor-friendly

- NRI portfolio route to be merged with FPI for seamless investment in stock   markets

- Credit Guarantee Enhancement Corporation will be set up in 2019-20, action   plan to deepen markets for long-term bonds with specific focus on infra sector   to be put in place

- Will take up measures to make RBI and SEBI depositories inter-operable

-To allow FPIs/NRIs to subscribe to listed debt papers of REITs and InvITs

Banks

- State-run banks to get Rs 70,000 crore capital to boost credit

- To bring out a remedy against cash being deposited without knowledge of   bank account holders

NBFCs

- Fundamentally sound NBFCs to keep getting funding from banks and mutual   funds

-To allow FIIs and FPIs investment in debt securities issued by NBFCs

-Requirement of Debenture Reservation Reserve to be done away with for   NBFCs

Agriculture/fisheries

- Govt to invest widely in agriculture infrastructure

- Support private entrepreneurship in value addition in agriculture

-Proposes Pradhan Mantri Matsya Sampada Yojana to address critical infrastructure gap in fisheries sector

Transportation

-To carry out comprehensive restructuring of National Highway programme

-Cargo volume on Ganges to increase four times over the next four years

-In second phase of Bharat Mala project, states will be helped to develop   roadways

-1,25,000 km of roads will be upgraded under Pradhan Gram

 Sadak Yojana under Phase III at estimated cost of Rs 80,250 crore

Aviation

-Time right for India to enter into aircraft financing and leasing

-Will create congenial atmosphere for development of MRO services

-To harness India's space ability commercially, New Space India (NSIL) has   been incorporated to tap the benefits of ISRO

- Will re-initiate privatisation of Air India

Power

- Package for power sector tariff and structural reforms to be unveiled soon

Retail

- Local sourcing norms to be eased for single-brand retail FDI

Insurance

Proposes to reduce net owned fund requirements to Rs 1,000 crore for onshoring of international insurance companies

Real estate

- RBI to get regulation authority of housing finance sector

- Will finalise a model tenancy law and circulate to states; and propose steps for rental housing

- Govt proposes setting up 1.95 crore houses under Pradhan Mantari Awas Yojna (Rural)

Small businesses/MSMEs

- To extend pension benefit to three crore retail traders with an annual turnover less than Rs 1.5 crore under Pradhan Mantri Karam Yogi Man Dan Scheme

- Centre will create a payment platform for MSMEs for payment of bills

- 100 new clusters will be set up in 2019-20 to enable 50,000 artisans to come into the economic value chain

- To launch mission to integrate traditional artisans and creative persons with global market; to obtain GI/patents for them

- Will set up 10,000 new farmer producer organisations

- To start television programme exclusively for startups

- Proposes to expand self-help groups to all districts; one woman in every SHG to get a loan up to Rs 1 lakh under Mudra Yojana

Railways

- Railways to be encouraged to invest more in suburban rail network via special purpose vehicles (SPVs) and enhance metro rail network through public-private partnerships

- Railway station modernisation programme will be launched this year

Education

-Will bring in new education policy to propose changes in school, higher   education

-Propose to set up a national research foundation to fund, coordinate and to   promote research in the country

-National Research Foundation will assimilate research grants by ministries

-A Gandhi-pedia is being developed to sensitise youth about Mahatma Gandhi's   ideas

-A draft legislation for higher education commission of

 India to be presented

-Proposes Study in India programme to attract foreign students

-National Sports Education Board to be set up under Khelo

 India scheme

-Allocate Rs 400 crore for world-class higher education institutions in FY20

 

For NRIs

-Aadhaar cards to be issued to non-residents Indians with Indian passports after arrival in India without waiting for 180 days

Personal finance

-NPS Trust will be separated from Pension Fund Regulatory and Development   Authority (PFRDA)

Tourism

-To build 17 iconic sites to encourage arrival of tourists in India

Taxation

-Lower 25 percent corporate tax will apply on companies with up to Rs 400   crore turnover, covering 99.3 percent  of corporate India

Source: https://www. moneycontrol.com/news/india/indian-union-budget-key-takeaways-nirmala-sitharaman-speech-4172661.html

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Markets give thumbs up to Modi 2.0: Nearly 200 smallcap stocks rose 10-40% in 5 days

The average market capitalisation of BSE listed companies rose from Rs 146.58 lakh crore recorded on May 17 to Rs 152.71 lakh crore on May 24 which translates into a rise of Rs 6.1 lakh crore in just 5 trading sessions.

It was a historic week for Indian markets as both Sensex and Nifty50 hit fresh record highs, and investors' wealth rose by over Rs 6 lakh crore for the week ended May 24 as Mr. Market cheered the continuity of reform process and the end of political uncertainty, as Narendra Modi is set to become the Prime Minister for a second consecutive term.

The S&P BSE Sensex which touched a record high of 40,124.96 closed the week with gains of over 1,500 points or 3.97 percent while Nifty50 which hit a record high of 12,041 closed with gains of 437 points or 3.8 percent in the same period.

The average market capitalisation of BSE listed companies rose from Rs 146.58 lakh crore recorded on May 17 to Rs 152.71 lakh crore on May 24 which translates into a rise of Rs 6.1 lakh crore in just 5 trading sessions.

The big outperformers were the small & midcaps which outperformed benchmark indices in the week gone by. The S&P BSE Midcap index rose 4.45 percent while the S&P BSE Smallcap index rallied 5.8 percent for the week ended May 24.

As many as 193 stocks in the S&P BSE Smallcap index rose 10-40 percent which include names like Jai Corp, Motilal Oswal, BEML, Orient Cements, Jet Airways, NCC, JK Cement, JMC Projects, KEI Industries, Timken India, BF Utilities, and Ramky Infra etc. among others.

Most experts feel that the big outperformance could come from the broader markets, which are already down in double digits from their respective peak. The S&P BSE Midcap index is still down by about 14 percent from its 52-week high while the S&P BSE Smallcap index is down by over 19 percent from its peak of 17,517.

"The week gone by was historic in terms of massive volatility – implied volatility and India VIX both had registered record highs but soon normalized reflecting the emotional sentiment of the Indian investors in the stock market," Jimeet Modi, Founder and CEO, SAMCO Securities & StockNote told Moneycontrol.

"Investors must ideally avoid large caps as they are in the overvalued zone while selective beaten down mid and small caps could be bought into. As of now, a wait and watch approach should be followed by markets at least till the Monetary Policy and Budget announcement by the newly elected government," he said.

As many as 20 stocks in the S&P BSE Midcap index rose 10-30 percent which include names like Tata Power, Adani Transmission, Indian Bank, Adani Power, Wockhardt, Canara Bank, Reliance Power, and Adani Enterprises, etc. among others.

In the S&P 500 index more than 100 stocks rose 10-30 percent while 38 stocks hit fresh 52-week high which includes prominent names like HDFC Bank, Titan Company, Kotak Mahindra Bank, Bajaj Finance, Axis Bank, HDFC, City Union Bank, ICICI Bank, State Bank of India, Manappuram Finance, and L&T among others.

Technical View:

The Nifty50 crossed the 12,000-level for the first time ever during the previous week on political stability as the BJP-led NDA is set to form the government for a second consecutive term.

The price action formed a bull candle with a higher high and higher low and a bullish gap between (11407- 11592) below its base signaling strength and positive bias. The index has major support at 11500 levels.

"The Nifty during previous week witnessed faster retracement of mid-April-May fall (11856-11108) by rallying over 900 points in just eight sessions," Dharmesh Shah, Head – Technical, ICICI direct told Moneycontrol.

"The faster retracement signifies a structural turnaround that makes us confident for an up move towards 12200 levels in coming weeks as it is the 138.2 percent external retracement of mid-April–May decline placed at 12142 levels," he said.

Source:  https:// www.moneycontrol.com/news/business/markets/markets-give-a-thumbs-up-to-modi-2-0-nearly-200-smallcap-stocks-rose-10-40-in-5-days-4019491.html

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Vistara to add six Boeing 737 aircraft from Jet Airways

The Boeing aircraft will mark a change as Vistara till now had only Airbus planes

Vistara is set to add six Boeing 737 aircraft, which earlier belonged to Jet Airways, to its fleet, making its first move to fill the space vacated by the distressed airline.

This is apart from a recruitment drive for cabin crew that Vistara is holding this week, which will attract applications from Jet Airways' employees who haven't received their salaries since March.

The Boeing aircraft will be new for Vistara, which has till now preferred to have Airbus narrow bodies. At present, it has a fleet of 22 Airbus 320 planes.

"Vistara will undertake a short differences training for pilots, crew and engineers to comply with Vistara’s standards and will be in operation soon," said a senior industry executive.

Commenting on the same, the Tata Sons-Singapore Airlines joint venture airline said: “The recent reduction in capacity has inconvenienced travellers, especially in the full-service segment. We will continue to grow our network to meet market demand."

Till now, IndiGo and SpiceJet have been aggressive in expanding their network and adding capacity after Jet Airways suspended operations earlier this month. While both low-cost airlines have added over 100 flights in three months, SpiceJet has added 27 aircraft, all from Jet Airways, to its fleet.

Vistara also added 14 new flights in April, mostly from Mumbai, to meet the peak summer demand. It will also vie for airport slots that belonged to Jet Airways and are now being given away by the government, which wants to make sure there are enough flights to keep fares in check.

The airline is also adding to its headcount and has scheduled walk-in interviews to hire cabin crews this week in Mumbai.

This will help Jet Airways' employees, who stare at an uncertain future. Their hope is now in the bidding process, where four suitors are expected to submit bids by May 10.

The employees though fear about their jobs, salaries and the benefits like gratuity and provident fund that have been saved over the years.

The employees will now have more options, with Vistara too looking to add to its fleet, increase flights and up its market share. "The competition will now increase" said the industry executive quoted above.

Source:  https://www. moneycontrol.com/news/business/companies/vistara-to-add-six-boeing-737-aircraft-from-jet-airways-3906161.html

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Investment  trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

 

For more details call on 9977499927 or visit our website www.capitalstars.com

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