Daily Archive: February 1, 2019

Post Budget Comments by Takayuki Inaba, Managing Director- NEC Technologies India

The Government’s effort towards using advanced technology like AI for masses is a welcome step. AI has been one of the biggest technological advancements in the recent past. The government’s vision of developing a national program on AI will set the implementation process in motion and help people and government immensely. Identifying priority areas for AI hubs will streamline the development work in the AI domain and give a certain direction to the start-ups working on this technology. All these efforts will promote the use of technology and digitisation and play an important role in the development of the economy”.

Bekxy Kuriakose, Head – Fixed Income, Principal Mutual Fund on the Interim Budget, 2019 – 20

“In the Interim Budget presented today by stand-in FM Piyush Goyal, the Fiscal deficit for FY 19 has been revised to 3.4% from the initial 3.3%. Inspite of a Rs 1 lakh cr slippage on account of GST collections ( RE – Rs 6.43 lakh cr vs BE 7.43lakh cr), the slippage in fiscal deficit from BE has been contained to 10,000 cr only. (RE Rs 6.34 lakh cr vs BE Rs 6.24 lakh cr). Last year after announcing a gross borrowing of Rs 6.05 lakh cr of market loans, government had slashed it twice and reportedly brought it down by Rs 70000 cr and issued calendar for Rs 5.35 lakh cr. However now the quantum of reduction is only Rs 35000 cr which implies Gross Borrowing of Rs 5.7 lakh cr as RE for FY19. Hence additional borrowing of Rs 35000 cr for FY19 is to be expected. This can be negative as market was not expecting any fresh supply for remaining period of FY19.

For FY20, the gross borrowing is pegged at Rs 7.09 lakh crore as compared to Rs 5.7 lakh cr (RE) for FY19. Fiscal deficit is pegged at 3.4% for FY20, a little higher than market expectations. Post these announcements gilt prices have fallen and yields have risen. We expect mood to remain a bit subdued and focus to shift to the RBI Monetary Policy Review on Feb 7thwhere we expect RBI to maintain status quo on rates and shift stance from calibrated tightening to neutral. We remain cautious and have reduced duration in our debt funds in run up to the budget.”

Post Budget Reaction by Debabrata Bhattacharjee, Head of Research, CapitalAim

New Delhi, (1/2/2019): We strongly believe that his budget is middle class and farmers oriented budget. Finance Minister clearly target middle income class and farmers to get benefit of their vote in the upcoming general election. No income-tax up to 5 lakh earnings is a big boost for this earning group. 6000 thousand Rs. for farmers which have 2 hectare land. it could affect in long term. Market reacts to the fiscal policies taken by govt. in this budget. Indices can drag in short term but at the end market is reacting positively in the hope of re-elected this government. In the coming months we believe indices could touch new highs.

CNX Nifty which is around 10900 level, If breaks the upper range of 11000 it can easily moved up to 11200 level where it could face resistance. it also depends on US and other markets sentiment. In the near short term buying on dips will be the strategy. However on the bottom side if nifty breaks 10600 level we could easily see 10500-10400.

Stocks that are likely to get benefited post budget.

Post budget, stocks that are hot and have to invest in are DABUR, HINUNILVER, MARICO, TVS MOTOR, HERO HONDA, BAJAJAUTO, JUBILANTFOOD these stocks are consumer oriented stocks which are biggest beneficiary from extended tax slab of 5 lakh given by finance minster. One thing that we mentioned here is that two wheeler segments get benefited by budget due to middle class tax relief, but not as much as good for four wheeler segment because of tax slab unchanged on upper side i.e. above 5.00 lakh. On the other hand Real Estate Sector is also benefited by this budget hence the finance minister, given boost to affordable housing projects, Companies that develop Affordable housing are DLF, Soba Developers, Parshvnath Developers etc. and companies that give finance to these projects and housing finance companies get benefited from this budget.

Stocks that are likely to get negatively impacted

Stocks and sectors that are losers or not much participating post budget are Banking, finance, and Pharmacy & IT. Finance minister event not touch LTCG and STT’s in budget. Stocks that are awaiting for changed in LTCG and STT’s are GEOJIT, Edelweiss, IIFL, these stocks are not getting what they are expecting. NBFC’s are also not benefited, stocks like DHFL, Bharatfin, bajajfinance, m&m finance are expecting a stimulus in current scenario where they got hammered because of their liquidity problem.

Jaypee Hospital, CEO, Manoj Luthra’s Reaction On The Interim Budget.

New Delhi, (1/2/2019): As the Government announced the interim budget for the fiscal year 2019-20, various industries, education institution and big companies welcomed the budget present by the Finance Minister.Dr. Manoj Luthra, CEO, Jaypee Hospital, said ;

“The honourable finance minister’s proposals laid out in today’s budget are commendable. The focus on assuring access to quality healthcare services has the potential to change the way Indians live and work. National Health Protection Scheme-Ayushman Bharat has taken long strides to ensure the achievement of the Prime Minister’s vision of providing quality and affordable healthcare facilities to all. Already around 10 lakh poor and vulnerable people have benefited through the free medical treatment made available under the scheme. Significant number of poor and middle class people are also benefitting from the reduction in prices of essential medicines, cardiac stents and knee implants at affordable prices. Government’s approach to advance the healthcare infrastructures of the economy by inaugurating multi-speciality hospitals such as AIIMS or primary healthcare centres is also significant.

Healthcare is a backbone of any economy and a healthy India is essential to keep up the growth momentum of our nation and contribute towards becoming a $5 trillion economy in the next five years. I congratulate government on their visionary approach to building a distress-free and comprehensive healthcare system for all.”

Budget Reaction By Prashant Gupta, Executive Director, Sharda University

New Delhi, (1/2/2019): As the Government announced the interim budget for the fiscal year 2019-20, various industries, education institution and big companies welcomed the budget present by the Finance Minister.
Prashant Gupta, Executive Director, Sharda University, said,

“Reflecting our Government’s great commitment to harness the potential of our students/youth and empower their future, the investment of Rs 38, 572 Cr under the National Education Mission, is indeed a welcome move. The initiative of deduction in the interest on education loans will make education accessible to all. Additionally, the government’s push towards new-age technologies like Artificial Intelligence will impart necessary skills and knowledge to the younger generation and will help in preparing the workforce of future.”

1 February, 2019 11:35

New Delhi, (1/2/2019): As the Government announced the interim budget for the fiscal year 2019-20, various industries, education institution and big companies welcomed the budget present by the Finance Minister.

Prashant Gupta, Executive Director, Sharda University, said, "Reflecting our Government’s great commitment to harness the potential of our students/youth and empower their future, the investment of Rs 38, 572 Cr under the National Education Mission, is indeed a welcome move. The initiative of deduction in the interest on education loans will make education accessible to all. Additionally, the government’s push towards new-age technologies like Artificial Intelligence will impart necessary skills and knowledge to the younger generation and will help in preparing the workforce of future.”

Micromax, respect and welcomes the government’s budget reforms.

New Delhi, (1/2/2019): As the Government announced the interim budget for the fiscal year 2019-20, various industries and big companies welcomed the budget present by the finance Minister. Micromax co-founder said, “We, at Micromax, respect and welcome the government’s budget reforms. This year’s Budget has brought significant changes, focusing on various key aspects which are largely stressed upon our overall economic growth – Rural, Agriculture, job creation, healthcare, housing, Structural reforms and infrastructure development, which will help stimulate and strengthen the Indian economy. The emphasis on establishing a programme to bring in direct efforts towards building a holistic ecosystem for Artificial Intelligence is an impressive development. The government’s proposal of giving a full tax rebate to individual taxpayers with an income of up to 5 lakh will empower the Indian consumer. Moreover, the government’s announcement around expanding Common Service Centres and creating digital infrastructure in the villages will be a significant step in the Digital India mission and growth of the Make in India initiative. With India leading the consumption of voice calls and mobile data usage, it is fascinating to note our constant progression towards becoming a global hub for manufacturing.”

बजट ने व्यापारियों को किया निराश ; बजट न हो कर चुनावी घोषणा पात्र ज्यादा लगा : वी के बंसल राष्ट्रीय महामंत्री

बजट पर फेडरेशन ऑफ़ आल इंडिया व्यापार मंडल ने अपनी प्रतिक्रिया देते हुए बताया है कि माननीय श्री पीयूष गोयल द्वारा आज बजट के स्थान पर भाजपा का चुनावी घोषणापत्र जारी किया गया है । पुरे बजट में किसान , एवं मजदूरों की बात तो की है पर व्यापारियों के लिए यह बजट पूर्ण रूप से शून्य है । ऐसा लगता है कि सरकार को फल तो चाहिए जिसे वह सम्पूर्ण समाज को बाँट सके पर जिन पेड़ो से यह फल आने है उन पेड़ो की सेहत ,सुरक्षा एवं सुविधा का कोई ख्याल नहीं किया गया । सरकार के कुल राजस्व का 50 प्रतिशत भाग ,यानी की जीएसटी को उपभोक्ता से यकृत कर सरकारी खजाने में जमा करने वाले व्यापारी की सामाजिक सुरक्षा हेतु कोई बात नहीं की गयी जिस प्रकार मजदूरों को 3000 प्रतिमाह की घोषणा की गयी है । इस मुद्दे पर बजट ने व्यापारियों को निराश किया है । बजट में जॉब में लगे कर्मचारियों पर मेहरबानी की गयी है , जिन लोगो के पास कोई रोज़गार नहीं , उन्हें रोज़गार देने हेतु व्यापार पर कोई धायणा नहीं दिया गया है ।

व्यक्तिगत कर सीमा 2.50 लाख ही है सिर्फ 5.00 लाख तक की आय करमुक्त हो गयी है जो वर्तमान में 3.50 थी । आयकर में सेक्शन 87 A के अंतर्गत 2500 की रिबेट तो 12500 कर दिया गया । जिनकी आय 5.00 या ऊपर है उन्हें यह लाभ नहीं मिलेगा । इस छूट के कारण 6.85 करोड़ में से 3 करोड़ करदाता कर दायरे से बाहर हो जाएंगे । सरकार के अनुसार नोट बंदी के बाद 1.50 करोड़ करदाता बढे ,जिसमे से सरकार ने 3 करोड़ बहार निकाल दिए । इस प्रकार के पर्वधन सिर्फ भ्रम पैदा करते है।

लघु एवं मध्यम वर्गीय व्यापारी अधिकतर सांझेदार फर्म के मध्यम से व्यापार करता है जिसपर आयकर अधिकतम दर यानी कि 30 प्रतिशत की दर से लगता है ,जबकि बड़ी कंपनियों पर आयकर 25 प्रतिशत की दर से आयकर लगता है । इस बड़ी विसंगति ,जिससे विषय में फेडरेशन द्वारा सरकार से अनुरोध किया गया था , दूर नहीं किया गया है ।

किराए में टीडीएस की छूट की सीमा 1.80 लाख प्रति वर्ष से बढ़ा कर 2.40 लाख प्रति वर्ष कर दी गयी है । मुद्रा स्फीति को देखते हुए यह सीमा 3.00 लाख प्रति वर्ष कर देनी चाहिए क्योंकि वर्तमान 1.80 लाख की सीमा पिछले बहुत वर्षो से लागु है । टीडीएस की छूट की सीमा अन्य खर्चो पर भी बढ़ानी चाहिए क्योंकि सभी सीमा पिछले बहुत वर्षो से बड़ी नहीं है , जिसमे मुख्यतः कांट्रेक्टर , प्राइवेट ब्याज , पेशेवर को भुगतान इत्यादि है ।

फेडरेशन द्वारा ऑनलाइन इ कॉमर्स पर एक विशेष कर जो कम से कम 5 प्रतिशत हो, पर कोई विचार नहीं किया गया और देशी खुदरा व्यापारियों के अस्तित्व पर कोई निर्णय नहीं लिया गया ।

माननीय वित्त मंत्री जी ने यह तो बताया कि बड़े उद्योगों से डूबत ऋण से 3 लाख करोड़ो वसूले गए है , यह नहीं बताया कि कितना लाख करोड़ो लोन छोड़ दिया गया है या माफ़ कर दिया गया है ।

जीएसटी पंजीकृत लागु एवं मध्यम उद्योगों को 1 करोड़ तक के ऋण मे ब्याज में 2 प्रतिशत की छूट दी गयी है , इसमें एक स्पस्टीकरण की आवश्यकता है इस प्रावधान में सिर्फ औधोगिक इकाई शामिल है या ट्रेडर्स भी समिल्लित है । इस घोषणा का फेडरेशन स्वागत करता है और उम्मीद जाहिर करता है कि बैंक इस घोषणा का लाभ देने में कोताही नहीं बरतेंगे ।

फेडरेशन ऑफ़ आल इंडियन व्यापार मंडल आशा करता है कि माननीय प्रधान मंत्री जी को दिए गये बजट पूर्व ज्ञापन पर संज्ञान लिया जाए और व्यापारी हितो के लिए जीएसटी के अंतर्गत Universal Traders Composition Scheme पर गंभीरता से विचार किया जाए ।