Roller-coaster

Nifty50: 17,576 ▲ 237 (+1.3%)

Sensex: 58,862 ▲ 848 (+1.4%)

• The market turned negative after the Budget speech concluded. However, it made a ‘V’ shaped recovery and closed near the day’s high.
• The recovery was led by metal and cement stocks, which jumped as the capital expenditure boost was announced in the Budget.
• Meanwhile, the cues from international indices were also positive.

Among the Nifty sectoral indices, Metal (+4.4%) and Pharma (+2.2%) were the top gainers, whereas Auto (-0.7%) and PSU Bank (-0.5%) were the top losers.

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Here are the top stories of the day.

Capex boosts for Metals

For fiscal ‘23, the government has increased the capital expenditure plan by 35% to ₹7.5 lakh crore. The money will be spent on capital assets such as roads, buildings, etc.

Further, the custom duty exemption on steel scrap is extended for one more year. These announcements indicate higher demand for metals and will be beneficial for domestic metal companies.

FM defends Defence sector

In a bid to make the Indian defence industry self-reliant and reduce dependence on imports, the government plans to buy more equipment locally.

In the Budget, the Finance Minister announced that 68% of the capital procurement budget will be allocated for the domestic defence industry. This figure was 58% for FY22.

Affordable housing gets a boost

Shares of realtors and housing finance were upbeat as the Finance Minister proposed to build 80 lakh houses under the PM Awas Yojana. In a major boost for affordable housing, ₹48,000 crore was allocated for the scheme.

Union Budget 2022

Here are the key highlights from today’s budget:

• Growth-focused Budget bets big on capital expenditure
• Big money outlay for roads, railway, housing
• Incentives proposed for SMEs and start-ups
• New legislation to replace SEZ laws
• Tax proposed on income from virtual digital assets
• No change in income tax slabs
• RBI to roll out Digital Rupee in FY23
• LIC IPO expected shortly

Good to know

What is a virtual digital asset?

A virtual digital asset is any information, code, number or token which is generated through cryptography. An example of a virtual digital asset is the cryptocurrency or non-fungible token (NFT). The finance minister in the Union Budget ‘22-23 proposed 30% tax on income from the transfer of any virtual digital asset.

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