The Budget will be Unique in Many Ways,
The Budget will be Presented Digitally for the first time through a Dedicated App for The Budget.
The Budget will be Presented on the Back of a Big BAD YEAR which Kept the Entire World Closed for the Longest Period in Human History. The Pandemic caused Big Blows to All the Global Economies including India. This Budget will be Very Important on that Perspective.
There are Many Things about Budget, But We are not here to Discuss the Uniqueness.
There are a Lot of Expectations from the Budget this Year as We have seen, the Businesses were closed for a Longer Time and the Common Man suffered from the pandemic. Although the Vaccine is ready and started it’s work, the Economy is slowly coming back to track and many still struggling to digest the impact.
This Year, I am Expecting Many Important Announcements for Few Core Sectors.
Defence, Agriculture, Infrastructure, Healthcare and Education, Auto and Real Estate will see Major Developments. Make in India and Atmanirbhar Bharat will be again the theme of the Budget.
We Will Witness the Focus on the Lower Bottom of the Ecosystem, The Efforts to Strengthen the Lower Bottom of the Ecosystem will be the Game Changer.
Focus will be given on Making the Defence Sector completely Atmanirbhar with Make in India initiative. Developing Technology, Next Generation Weapons and Increasing Export will be the Major Area.
After Defence, Major Announcement to Strengthen the Agriculture and Related Sectors are expected. There will be a Major Boost to Agriculture related Businesses and Export Oriented Units.
Next Sector to be in Focus will be The Real Estate Sector, The Sector is Facing a Strong downtrend since long. I personally Expect some steps to be announced for the revival of the Sector. Expectations are to widen the Scope of Affordable Housing. Reduction of GST, Stamp Duties and Tax Rebates for Developers. There may be some Tax Reliefs for the Real Estate Buyers.
Healthcare Sector is Expecting some Booster of Development soon, We have faced lack of Healthcare Facilities and Poor Infrastructure for the Sector. There will be Focus on Developing Infrastructure for Healthcare, Tax Rebates for Developments in Rural areas.
I am Expecting Increase in Deduction limit for Health Insurance for Income Tax. Currently the Limit is set at 50K only. If it is Increased, it will be a Booster for Health Insurance Sector.
Education will also see reforms looking at the Problems faced by this Sector during the Pandemic.
Automobile Sector may be Blessed with the Scrapage Policy. Some More Announcements related to Electric Vehicles, Alternate Energy and Road Development are Expected to be Announced.
Railway will attract Good Fund Infusion on Infrastructure Development and the Freight Corridor Development.
PSU Banking Might see some more Consolidation by Merger of few more Banks and We may see some Guidelines of Privatisation of few PSU Banks or May be Stake sell by the Government to Infuse Funds in these Banks. The Privatisation will lead to Better Quality and Competitive Service by these Banks.
on the Front of Income Tax, I don’t See any major Changes as The Slabs are changed recently and there will be a shortfall in Income for the Govt due to Pandemic. But at some Point, The Finance Minister may also Look for the Opportunity to reduce Income Tax Burden in order to Make more Liquidity Available in the Hands of the Tax payers which in return will boost spending and will Help in Economic Revival on faster pace.
There may be More Clarity on Dividend Distribution Tax, Capital Gain Provisions of Sovereign Gold Bonds Scheme. The Uniformity on Taxation Structure in ULIPs and Mutual Funds.
Textile Sector will be rewarded with more Incentives under Make in India, The Sector has recently shown it’s Capabilities during last few months by making India the No 1 Producer of PPE kits, Masks and Cotton Swabs.
If You are a Trader or an Investor, Remember… India will be Leading the Global Economic Recovery and Will be leader in Many Sectors in coming years. The Growth Story will witness a Big Boost and Results may be Visible in Next 3-4 years.
We will be Attracting Many Global Manufacturers to Start their Production Units in India by Incentives as Many are moving out of China and India is a Better place compared to Other Countries.
Most of the Times Focus of the Common Man is on the Income Tax Announcements only. If Income Tax benefits are Given, Budget is Good. If Tax Benefits are not announced, Budget is Bad. Start Thinking in a Different way. Listen to the Announcements in Budget carefully and Focus on Sectors and Stocks accordingly.
For Me The Theme will be to Increase Consumption and Liquidity in Market to Boost the Economy. For the Same, Focus will be on Agriculture, Automobiles, Defence, Real Estate, Healthcare, Education and Infrastructure.
I will be waiting for the Volatility to end before entering the Stocks,
I will Focus on Defence, Consumption and Agriculture related Stocks First.
Tata Chemical, UPL, Godrej CP, Tata Consumer, Marico, Tata Motors, Mahindra and Mahindra, Maruti, TVS Motors, Fertiliser Stocks, Logistic Stocks, Auto Finance Companies (SRT Finance, M&M Finance), Life Insurers, General Insurance, Defence Related Stocks, Infrastructure Stocks (L&T, Bharat Forge, Siemens, Etc.)
I will Prefer to Listen the Budget, Analyse and Then Decide my Course of Action. It is Not Like, if You Miss the Opportunity today than You have Missed it for Life Time. Will Analyse The Budget Carefully and Then Post My Stocks with proper Levels and Analysis. Let the Market Settle before taking any decision.
Posting Overall Market Analysis in Next Post, Stay Tuned !!
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The Author or the Analyst is a Global Market Expert, Technical Analyst and Globally Certified Investment Adviser having Experience of More than 13 Years in Global and Domestic Markets as a Analyst and Fund Manager !!
The Views are My Independent views based on my Analysis and Reading of the Economic Situations, These are expectations only and We do not possess any Insider Info for the Analysis.
Original source: https://optionsmagician.blogspot.com/2021/01/preparing-for-budget-2021.html