The Union government has asked the National Highways Authority of India (NHAI) to continue on the path of fiscal consolidation and keep borrowings to a minimum in 2024-25 in an attempt to stop its debt ballooning to unsustainable levels. According to the interim budget for 2024-25, no provision for borrowings by the highway developer has been made for the next financial year.

The Union Budget for 2024 has not brought much cheer for startups, particularly early stage, as government cuts budget for major flagship schemes under 'Startup India' initiative. In the Budget, there has been a reduction in the allocation for the Small Industries Development Bank of India (SIDBI)-operated Fund of Funds Scheme (FFS). The allocation for FFS was cut down to Rs 1,200 crore.

FM Nirmala Sitharaman has increased outlay on semiconductors & display manufacturing under 'Modified Programmed for Development of Semiconductors and Display Manufacturing Ecosystem in India' by 130% to Rs 6,903 crore in the Budget 2024. Under this scheme, capex on land, buildings, plants, equipment, cleanrooms, transfer of tech, and R&D are covered for support for a period of over six years.

Power and energy stocks gained on February 1 after finance minister Nirmala Sitharaman reiterated her focus on renewable energy in the Interim Budget. Sitharaman in her speech said that, to meet their commitment for ‘net-zero’ by 2070, various measures will be taken such as providing viability gap funding for offshore wind energy and installing solar panels to help one crore households.

The banking industry has cheered the Union Budget's focus on fiscal consolidation, infrastructure development, and affordable housing saying these measures are positive for sustainable growth in the economy. "The finance minister is showing strong intentions, ahead of the election year, to adhere to the fiscal consolidation path and will be well received by rating agencies as well as the global.

The Indian government has not extended the deadline for the concessional tax rate of 15% for new manufacturing start-up companies. This was expected to be announced in the Interim Budget, but it was not included in the Finance Bill for 2024. This could impact the Make In India initiative and the goal of making India a manufacturing hub.

The Interim Budget 2024-25 allocated Rs 1,17,528.79 crore for the Ministry of Agriculture that makes for about 2 percent of the Union Budget – slightly lower than the revised estimate for the year at Rs  1,16,788 crore. The  budget estimate for FY24 for the sector was Rs 1,25,036 crore. The budget was conservative in its expenditure allocations for key schemes.

Shares of multibagger smallcap stock Praveg rallied up to 5% to day's high today at Rs 1,025 on BSE after FM Nirmala Sitharman announced comprehensive development of tourist centres including in Lakshadweep. To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure, and amenities will be taken up on our islands, including Lakshadweep.

Highlights Fertilizer subsidy reduced for FY24-25 Focus on Nano DAP Push towards bio agri inputs Budget allocation for farm mechanization Overall positive for Agri-input sector The government spending on agriculture and farmers’ welfare has gone up over the years. This year too agriculture garnered tremendous focus as the finance minister announced empowering poor, women, youth and farmers.

📈 Domestic benchmark indices closed on a negative note 📢 At 3:30 PM, the Sensex tanked by 106.81 points or 0.15% at 71,645.30, and the Nifty was down 28.25 points or 0.13% at 21,697.45. 📊Among sectoral, Maruti Suzuki (⬆️4.43%) turned out to be the best performer while Nifty metal (⬇️ 1.03%) saw considerable selling.

Tata Motors on Thursday said it has reported a 6% year-on-year increase in its total vehicle sales (including international markets) at 86,125 units in January. The company had sold a total of 81,069 vehicles in January last year, according to a statement. During the last month, total domestic sales stood at 84,276 units as against 79,681 units in January 2023.

OMCs saw a rise in shares after the government announced Rs 15,000 crore capital support for FY25. In FY24, the finance minister had promised an equity infusion of Rs 30,000 crore but this was not implemented. Despite expecting a reduction in capital infusion estimates due to strong profits and stable crude prices, there were no major reforms announced for the industry in the Budget.

The MeitY has received a 50% increase in its budget allocation for the current year's interim budget, reaching a total of Rs 21,385.15 crore. This increase is in line with MeitY's consistent budget growth in recent years. The majority of this increase will go towards expanding production linked incentives for semiconductors and electronics manufacturing.

The Interim Union Budget for 2024-25 continued to tread the path of fiscal consolidation, in the backdrop of a healthy domestic economic environment. It pegged the Government of India’s (GoI) fiscal deficit at 5.1 percent of GDP for the next fiscal, midway through the revised estimate of 5.8 percent for FY2024 and the medium-term fiscal deficit target of 4.5 percent for FY2026.

Finance Minister Nirmala Sitharaman presented the government's last Budget before the upcoming general elections in May. This vote-on-account budget did not include any major announcements, but some sector-specific schemes were announced. Auto stocks, power and private bank shares were among the gainers, while L&T, UltraTech Cement, JSW Steel, Hindalco, FMCG firms saw a decline.