India Budget 2022: What analysts expect from FM Nirmala Sitharaman

“A stock market investor has to face dual taxation in the name of STT and LTCG. After paying these taxes, if an investor is able to gain from the markets, then it will get added in one’s income from other sources as well. So, a person earning from the stock market is paying the Indian government on three windows. So, it’s high time for the Union Minister Nirmala Sitharaman to remove LTCG Tax and make investor-friendly environment in the Indian stock market,” as per Anuj Gupta, Vice President at IIFL Securities.

Infrastructure, rural development and health-care stocks are among analysts’ top Budget expectations as government is set to step up spending in a budget aimed at kickstarting investment to boost growth.

“We hope that the government will maintain its fiscal expenditure high with a focus on infrastructure. Though there were several announcements for the infrastructure sector and that need to be continued, however, there is a need for some significant measures for the real estate and auto sector to create multiplier effects because these two sectors create jobs and growth in multiple sectors,” expects Sunil Nyati, Managing Director of Swastika Investmart Ltd.

Analysts expect the government to continue its growth agenda via higher capex allocation, which will accelerate the investment cycle and generate employment.

“With FY23E likely to mark a reversal of the interest rate cycle globally, fiscal prudence gains higher importance. Also, to prevent bond yields moving higher, policy measures to ensure inclusion of India’s sovereign bonds in global bond indices is a key expectation from the Budget. It may bring $20-40 billion per year and provide the much needed demand support for G-Secs,” said analysts at ICICI Securities in a note.