Share Market Highlights 23 July 2024: Sensex, Nifty dip as Govt raises capital gains and derivatives taxes


PART A

➡️ 5 schemes to be announced, centred on youth, employment and skilling benefiting 4.1cr youth. This will entail an outlay of INR2lk cr.

➡️ Proposal to allocate ₹ 1.48 lakh crore for education, employment and skilling

➡️ Focus on strengthening production, storage and marketing for oil seeds such as mustard, groundnut, soy, etc. Vegetable clusters to be developed.

➡️ Provision of INR 1.52lk cr announced for agri and allied activities.

➡️ Will give employment-linked incentives. Enrolment in EPFO. Recognition of first-time employees. 

a) First-timers will receive a one-month wage from the government in three instalments, as registered in EPFO, up to INR 15,000. Eligibility is for less than ₹1 lakh per month.

b) Govt will reimburse up to ₹3,000 per month per employee for their EPFO contributions for up to ₹1lk per month salary. It should help 50 lakh jobs.

➡️ Proposal to allocate INR 26,000cr for the development of highways in Bihar. New airports, medical colleges, and sports infra will be constructed in Bihar. 

➡️ Financial Assistance worth INR 15,000cr for Andhra Pradesh through multilateral agencies.

➡️ 3cr additional houses under PMAY have been announced

➡️ More than 100 branches of post-payment banks have been budgeted to open in North Eastern region

➡️ Credit guarantee schemes for the purchase of machinery without collateral. Guarantee of ₹100 cr.

➡️ New assessment model: PSU will build their own internal credit assessment model as per digital imprint. 

➡️ Credit support to MSME during stress period (SMA account) guarantee. MUDRA loans increased from 10 lakh to 20 lakh.

➡️ TReDS: Reduce the turnover threshold from INR 500cr to INR 250cr for buyers. Will bring more CPSE on to the platform.

➡️ SIDBI will open new branches to serve more MSMEs. Opening of 24 new branches this year.

➡️ Proposal to allocate INR 2.66lk cr for rural development, which is a 40% increase YoY.

➡️ Proposal to allocate INR 3lk cr towards the benefit of women and girls

➡️ PMAY Urban – investment of INR 10lk cr (2.2lk cr central assistance in next 5 years). The provision of interest subsidy is envisaged.

➡️ Stamp duty moderation by states encouraged. Further benefits are recommended for properties purchased by women.

➡️ R&D for Small modular nuclear reactor: Partner with pvt sector firm; R&D Bharat small modular reactor; R&D funding announced will be available for this sector

➡️ Critical minerals to be set up for the recycling of critical minerals and their overseas acquisitions. The government will launch the auction of the first tranche of Offshore blocks for mining, building on the exploration already carried out.

➡️ Water supply and sanitation: The Center will support states along with multi-lateral agencies for 1) water supply projects, 2) sewage treatment, 3) solid waste management, 4) such services for the top 100 cities, and 5) use of treated water for irrigation and tank filling. Positive for Water supply & treatment companies (Va Tech Wabag, EMS ltd, Ion Exchange) and solid waste management companies (Antony waste).

➡️ Infra investment: ₹11,11,111 crore 2.4% of GDP announced (same as in interim budget)

➡️ PM Suryaghar Muft Bijli Yojana – free electricity up to 300 units/month

➡️ PM Gram Sadak Yojana: Phase 4 will be launched.

➡️ Assistance for flood management program in Assam, Himachal Pradesh, Uttarakhand and Sikkim announced. ₹11,500cr was announced for the flood mitigation program in Bihar.

➡️ Spiritual tourism – Vishwpat Temple corridor and Mahabodhi corridor to transform into tourist destinations. Focus on the development program for Rajgir and Nalanda.

➡️ Anusandhan national research: To spur private sector R&D with a financing pool of INR 1lk cr

➡️ Space economy: facilitate setting up of VC fund worth ₹1,000cr

➡️ Digitization of rural land records, mapping of rural pedestrian pathways in focus

➡️ NPS Vatsalya: investment by parents and guardians for minors which can be converted to NPS accounts seamlessly after attaining majority

➡️ Budget for 2025: Total receipts: ₹32.07 lk cr, Total expenditure: INR 48.21lk cr

➡️ Gross/net borrowing target: ₹14.01lk cr/₹11.06lk cr

➡️ Projected Fiscal Deficit: 4.9%. FY26 Fiscal Deficit: 4.5%

PART B

➡️ Reduce BCD on mobile phones, PCB charges to 15%

➡️ Seafood exports touched ₹60,000cr in FY24. Frozen shrimp was 2/3rd of this. To reduce BCD on fish feed and shrimp to 5%.

➡️ Reduce custom duty gold & silver to 6%

➡️ Propose to increase BCD on ammonium nitrate from 7.5% to 10%

➡️ Solar Energy: To promote the domestic manufacturing supply chain, govt decides NOT to extend duty exemption on capital machinery used for solar cells/modules, gases & glass manufacturing. Negative for solar cell/module manufacturer

➡️ To promote domestic aviation and ship repairs and maintenance, will extend the export time period for imported repair goods to 1 year from 6 months

➡️ TDS rate on e-commerce operators to be reduced from 1% to 0.1%

➡️ Proposal to de-criminalize TDS defaults

➡️ LTCG on financial and non-financial assets increased from 10% to 12.5%. STCG on certain financial assets to be increased to 20%. Exemption on LTCG on certain assets increased to ₹1.25lk.

➡️ Abolish angel tax to support start-ups. Proposal for a simpler tax regime fo foreign shipping companies operating cruises in India

➡️ Safe harbour rates for foreign mining companies selling diamonds in India

➡️ Reduce corporate tax rates on foreign companies to 35% from 40%

➡️ STT on F&O to be increased to 0.02% from 0.01%

➡️ Income on buyback to be taxed in the hands of the recipient

➡️ Standard deduction to be increased from INR 50,000 to INR 75,000 under the new tax regime

➡️ Revised tax slab under new regime: ₹0-3lk – NIL; ₹3-7lk – 5%; ₹7-10lk – 10%; ₹10-12lk – 15%; ₹12-15lk – 20%; ₹15lk+ – 30%

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