The trajectory of cryptocurrency adoption and regulatory frameworks in India has evolved significantly. While the government has taken commendable steps to nurture innovation in the sector, there are four key areas that require attention in the upcoming 2024 budget. These concerns include clear tax treatment for long-term and short-term capital gains.

The Union Budget 2024 is expected to continue the progressive trend of the previous year by promoting financial growth, infrastructure development, and youth empowerment. There is a focus on attracting foreign investment in GIFT City to compete with global financial hubs like Singapore and Dubai. The government may also introduce incentives for EV manufacturing to promote sustainable practices.

According to central bank data, foreign direct investments (FDI) into India decreased by 36% in the first eight months of FY24 due to high initial public offering (IPO) exits by private equity firms. This led to a higher influx of portfolio flows rather than durable FDI. However, there has been an increase in outbound FDI and repatriation of funds, which could result in more inflows in the future.

Raamdeo Agrawal of MOFSL expects a shift from traditional banking to capital markets in the next 10 years. He believes that there will be a surge in equity participation and excess liquidity due to people investing their savings. The power sector, infrastructure, and utilities are expected to do well. However, Agrawal also cautions against a possible market bubble and suggests diversification.

RBI's Digital Payments Index for September 2023 in Mumbai has increased to 418.77 from 395.57 in March 2023, reflecting growing digitisation of payments in the country. This index was introduced in January 2021 with a base of 100 in March 2018. The rise is seen in all sectors, with UPI transactions also increasing significantly to ₹18.2 lakh crore from ₹12.8 lakh crore in December.

Latest data shows India's manufacturing sector growth gained momentum in January, with the HSBC Purchasing Managers' Index reaching a four-month high of 56.5. This is slightly lower than the earlier estimated flash PMI, but still above the expansion threshold for the 31st consecutive month. The growth was driven by domestic demand and manufacturers were able to pass on higher costs to consumers.

Indus Towers sold a 9.2% stake worth Rs 5,229 crore in a block deal on February 1, leading to a 1.2% decline in share price. The buyers and sellers have not been identified, but it is reported that KKR and Canadian pension fund CPPIB were looking to exit the telecom tower company through a $465 million deal.

India's gold demand in 2023 saw a decline of 3% due to high prices, according to the World Gold Council. The global trend also saw a 5% decrease. In India, jewellery demand dropped by 6% while investment demand increased by 7%. China saw a rise of 16% in total demand. Gold imports in India increased by 20%, with the fourth quarter showing a significant increase of 43%.

A survey of economists predicts that FinMin will budget for a gross tax collection of Rs 38.3 lakh cr and a net collection of Rs 26.6 lakh cr in 2024-25, a 14% increase from the previous year. The relationship between GDP growth and tax collections is now complicated, but experts expect tax revenues to exceed budget estimates due to factors such as formalization, compliance, and improving growth.

Tax experts suggest that shifting the tax burden from listed companies to shareholders would be more equitable, bringing buyback taxation in line with dividend taxation. Currently, companies pay a flat 23.3% tax on distributed income through buybacks, while shareholders pay no tax. However, there are concerns that this could result in value erosion for shareholders who do not participate.

Indian markets have performed exceptionally well, surpassing global markets since the last budget. This success is due to good macroeconomic conditions, overcoming concerns about interest rates and economic slowdown. Sensex and Nifty saw significant gains, outperforming global benchmarks like S&P500 and Dow Jones. Foreign investor inflows also boosted sentiment.

Nova Agritech's IPO saw a 109.37 times subscription, with the stock rallying by nearly 41% on its listing day. The company offers soil health, crop nutrition and protection products, using a tech-driven approach. With a price band of Rs 39-41 per share, the IPO raised Rs 144 crore through a mix of fresh issuance and an offer-for-sale. The stock traded with volumes of 83.55 lakh shares on NSE.

Gold prices on February 1, traded slightly lower as investors awaited the budget announcement. The April 5 gold futures on MCX were down by 0.14% at Rs 62,648 per ten grams, with the interim budget potentially impacting its prices. Traders were advised to exercise caution and avoid heavy positions. The FOMC signaling an end to the monetary policy cycle lifted precious metal sentiments.

Ministry of Civil Aviation (MoCA) to receive a 25% increase in budget allocation for its regional air connectivity scheme (UDAN) in the upcoming Interim Budget. This will help revive airports shut down due to COVID and launch new routes. The government aims to operationalize 1000 UDAN routes and revive/develop 100 unserved/underserved airports by 2024.

Boeing reported a smaller fourth-quarter loss than expected and increased production of its best-selling plane, but a recent safety incident has raised concerns. The company declined to provide a 2024 forecast due to uncertainty surrounding ongoing investigations into quality-control issues. CEO David Calhoun emphasized a focus on improving quality and working transparently with the FAA.