Indices at day`s high; Nifty nears 17,600 mark

Key equity indices traded at the day`s high amid the ongoing Union Budget announcements by Finance Minister. The Nifty scaled 17,550 level and edged higher. Healthcare, realty and private banks stocks were in demand while PSU banks and auto shares saw selling pressure.

At 11:59 IST, the barometer index, the S&P BSE Sensex, jumped 898.7 points or 1.55% at 58,912.27. The Nifty 50 index advanced 254.70 points or 1.47% at 17,594.90.

In the broader market, the S&P BSE Mid-Cap index added 0.75% while the S&P BSE Small-Cap index gained 0.59%.

The market breadth was strong. On the BSE, 1,733 shares rose and 1487 shares fell. A total of 107 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, fell 2.16% to 21.4775.

Buzzing Segment:

Shares of logistics companies advanced after the Union Finance Minister Nirmala Sitharaman announced plans to set up 100 cargo terminals in the coming years.

Allcargo Logistics (up 3.48%), Aegis Logistics (up 2.52%), VRL Logistics (up 1.74%) and Snowman Logistics (up 1.39%) edged higher.

"100 Cargo Terminals under PM Gati Shakti will be developed in the next few years,� the Finance Minister said.

Shares of road construction companies were in demand after the Union Finance Minister Nirmala Sitharaman announced plans to expand national highways network by 25,000 km in FY23.

"National Highway network will be expanded by 25,000 km in 2022-23,� the Finance Minister said while announcement Union Budget.

PNC Infratech (up 3.54%), IRB Infra (up 2.76%), Dilip Buildcon (up 2.69%) and Ashoka Buildcon (up 2.28%) advanced.

Union Budget 2022:

The outlay for public capital expenditure has been stepped up sharply by 35.4% from Rs 5.54 lakh crore to Rs 7.50 lakh crore in 2022-23. This outlay will be 2.9% of the GDP. Effective capital expenditure of the central government is estimated at Rs 10.68 lakh crore in 2022-23, about 4.1% of GDP, FM Nirmala Sitharaman said.

The Union Budget focuses on PM Gatishakti, inclusive development, productivity enhancement, sunrise opportunities, energy transition, climate action and financing of investments.

The PM Gatishakti masterplan will encompass the seven engines of economic transformation: roads, railways, airports, ports, mass transport, waterways. logistics infra. All 7 engines will pull forward the economy in unison, supported by energy transmission, IT communciation, bulk water and sewerage and social infra.

FM announced implementation of Ken Betwa Linking project at an estimated cost of Rs 44,605 crore to be taken up with irrigation benefits to 9.0 lakh hectare farmland, drinking water to 62 lakh people, 103 MW hydropower. 27 MW solar power generation. Rs 1400 crore allocated in 2022-23.

On financial inclusion, FM said 100% of 1.5 lakh post offices will come on the core banking system, enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also provide online transfer of funds between post office accounts and bank accounts. This will be helpful especially for farmers and senior citizens in rural areas, enabling inter operability, and financial inclusion.

For the telecom sector, Sitharaman said that required spectrum auction will be conducted in 2022 for the rollout of 5G mobile services by private telecom providers. Scheme for design led manufacturing to be launched for 5G ecosystem as part of PLI scheme to enable affordable broadband and mobile communication in rural and remote areas. Further, contracts for laying optical fibre in villages will be awarded under BharatNet project under PPP in 2022-23.

FM said that Rs 48,000 crore is allotted for PM Awas Yojana. In 2022-23, 80 lakh houses will be completed for identified beneficiaries of PM Awas Yojana; 60,000 houses will be identified as beneficiaries for PM Awas Yojana in rural & urban areas. 60,000 crore allocated for providing access to tap water to 3.8 crore households. In 2022-23, 80 lakh households will be identified for the affordable housing scheme.

For EV segment, a battery-swapping policy is to be brought out with interoperability standards to boost EV ecosystem.

For defence sector, defense R&D will be opened up for industry, startups and academia with 25% of defense R&D budget. Private industry will be encouraged to take up the design and development of military platforms and equipment in collaboration with DRDO and other organizations through SPV model. 68% of capital procurement budget in defence will be earmarked for domestic industry in 2022-23. This is up from the 58% last fiscal.

Further, FM said National Ropeways Development Programme is to be taken up in PPP mode. The aim is to improve connectivity, besides promoting tourism. Construction of 8 ropeway projects for 60 km to be awarded in 2022-23.

E-passports, the issuance of E passports using embedded ship and futuristic technology will be rolled out in 2022-23 to enhance the convenience for the citizens in their overseas travel, FM said.

An open platform for the National Digital Health Ecosystem will be rolled out. It will consist of digital registries of health providers and health facilities, unique health identity and universal access to health facilities.

A high-level committee for urban planners and economists will be formed for recommendations on urban capacity building, planning implementation, and governance.

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