Budget 2022: Here's what stock market experts expect from FM Sitharaman

The countdown for Budget 2022 has begun and like everyone, stock market experts also have a voluminous list of expectations from Finance Minister Nirmala Sitharaman.
 
Jyoti Roy, DVP- Equity Strategist of Angel One Limited said that the government fiscal deficit for FY23 will be well below the budget estimate of 6.8 per cent for FY2022 due to better than expected tax collections.
 
"We expect that the government will continue its focus on providing support to the rural economy and manufacturing sector through increased spending and PLI schemes. We also expect the government will increase allocation to the Infrastructure and housing sector given their high multiplier effect on the economy," he said.
 
"However, we do not expect any major announcement in the Union Budget and believe that the government will continue with its reform process even outside of the Budget," Roy added.
 
Manoj Dalmia, Founder and Director, Proficient Equities Limited expects an affordable housing boost, announcements on income tax, GST reforms and better foreign fund flows.
 
He is also looking for tax concession for builders and interest subvention up to 1-2 years for buyers. The government should raise the limit of interest paid on mortgage loans eligible for tax benefits, he said.
 
Monetisation of Assets through NMP (National Monetisation Pipeline), rise in spending in terms of CAPEX by building the road, rail, ports and other infrastructures, incentives for setting up low emission mobility solutions, reduction in import duty of EV units, an extension of credit facilities and proposal of digital banks are among his key expectations.
 
"Union Budget is one of the big events for capital markets. We expect policy incentives towards green energies, alternative energy sectors, electric vehicles and infra space. Some key announcements should be made for auto, tourism and hospitality sectors as they are most affected due to pandemic," Kranthi Bathini, equity strategist at WealthMills Securities told BusinessToday.in.
 
Dr. Ravi Singh-Vice President and Head of Research-ShareIndia said that many of the government themes will revolve around the steps to revive the economy by providing productive spending and subsidies, therefore we expect the banking, auto, infra, fertiliser and sugar sector to be more focused in the Union Budget.
 
“The Union Budget 2022 is likely to focus on critical issues like demand generation, job creation, and putting the economy back on sustained GDP growth of over 9 per cent. Similar to 2021, Budget 2022 would be growth-focused and would be well received by investors, as economic expansion at this time is the need of the hour,” said Lav Chaturvedi, Executive Director and Chief Executive Officer, Reliance Securities.
 
He noted that the priority for growth over fiscal deficit shows a clear focus on spending to revive the economy from ongoing challenging situations. Based on the expectation of higher capex spending, more digitisation and focus on EVs, he is positive on sectors like Capital goods & Engineering, IT services. Green Energy and EV ecology are key transformational themes of the next decade.
 
Talking about the market outlook, Divam Sharma, Founder of Green Portfolio said that the market participants can expect enhanced volatility with the Budget week kicking in.
 
"So far, we are seeing good Q3 numbers and the long-term growth is visible with PLI, and China plus one. Any negative surprises can result in a deeper correction. A neutral budget should also be taken positively by the markets as the expectations around inflation, rate hike, fiscal deficit, are already priced in," he added.