Budget 2022: Infra to real estate, what brokerages predict for key sectors

With spending on Covid-related measures and subsidies expected to moderate in FY23, this year’s Budget is likely to focus on infrastructure, with higher allocation to roads, railways and water segments. The Budget could also expand the scope of the PLI scheme, extend tax cuts for new manufacturing units and rationalise import duties. The services space, one of the sectors hit hardest by Covid, may get some support in the Budget. Any boost to consumption or a relief in taxes will be positive for stocks across the consumer and consumer discretionary segments. Edelweiss Research has a defensive bias in its portfolio and expects higher rural allocation to support consumption. The key sectors to look out for will be infra, services (travel), auto, cement, metals, real estate, financials, and capital goods.

Budget 2022-23: Job creation to drive auto sales, say brokerages

When the government announces the Union Budget on Tuesday, brokerages and rating agencies expect measures to make automobiles, particularly two-wheelers, more affordable. Any employment generation initiative, if announced, will spur consumption, they say. Read more…

Capital goods: Capex push likely in Union Budget to support growth

The Budget is expected to push public capital expenditure (capex) and simultaneously create a conducive environment for private capex. This would mean raising allocations towards sectors such as defence, railways and renewable energy transmission projects, perking up the domestic capital goods industry, brokerages said. Read more…

Budget 2022-23: Clarity on PSB privatisation is expected, say brokerages

Some clarity on the privatisation of two public sector banks, announced in last year’s Budget, is expected. Brokerages feel it is highly unlikely that the government will infuse capital in these banks, implying that these units will have to increasingly rely on market borrowings to meet funding requirements. Read more…

Budget 2022-23: Higher allocation in infra sector to fuel economic recovery

Brokerages expect government spending on infrastructure to continue in financial year 2022-23 (FY23) with sizeable growth in capital expenditure in roads, highways, railways, defence, and housing sectors. Read more…

Budget 2022: Cement sector may shine with infra announcements, say analysts

Schemes to develop rural infrastructure and boost incomes, coupled with an extension of real estate incentives, would be key triggers for the sector in the Budget. Read more…

Budget 2022: Sops to boost investment in real estate sector, say brokerages

There are multiple expectations from firms in the real estate sector, the second largest employer after agriculture. Key among them are raising the exemption limit under Section 24 (b) of the Income Tax Act for interest on housing loans taken for self-occupied property from the current Rs 2 lakh to Rs 5 lakh to improve liquidity. Read more…

Budget 2022: Brokerages expect duty cut on metals to spur margins

Reduction in import duty on raw materials and finished products of steel, and higher allocation under infrastructure and housing for all schemes in the Budget could augur well for the domestic industry. Read more…

Budget 2022-23: Rural stimulus need of the hour amid Covid-19 pandemic

Consumption, which was impacted during the pandemic, is expected to improve as the rate of vaccinations rises to cover the entirety of the country’s eligible population. Corporate taxation, which was reduced in 2019, is also expected to remain untouched in FY23. Read more…