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It was a pleasure to hear the finance minister present the budget which painted bright colors on the canvas of India's growth story. The benchmark indices ended the highly volatile February 1st session on mixed marks. At Close, the Sensex was up 158 points at 59708, and the Nifty down 45 points at 17616. ITC, ICICI Bank, JSW Steel, Tata Steel and TCS were among the top gainers on the Nifty while Adani Enterprises, Adani Ports, HDFC Life, SBI Life Insurance and Bajaj Finserv were among the losers. Among sectors, Metals, PSU Banks, Oil & Gas and Energy indices fell 1-5%. However, the information technology index gained 1%. The BSE midcap and smallcap indices each fell 1%. Insurance stocks remained under pressure as insurance buyers are required to pay tax on insurance proceeds if the premium paid is more than Rs 5 lakhs. Cigarette major ITC tops the list of gainers but fell as much as 6.5% on the day after the Treasury Secretary said the National Calamity Contingent Duty on certain cigarettes will be revised upwards by about 16% will. Real estate, infrastructure and cement stocks rose after it was announced that PMAY spending rose 66%, plans to build 50 additional airports and heliports and invest Rs 10,000 crore annually in the city's infrastructure development fund . Defense stocks remain under pressure as they were no big announcement in this budget. Fertilizer inventories also fell after Finance Minister Nirmala Sitharaman earmarked Rs.1.75 crore for fertilizer subsidies in the FY2023-24 budget, down 22% from Rs.2.25 crore for FY23. Auto, property, consumer stocks achieved when the Finance Minister raised the personal income tax rebate limit to Rs 7,000 under the new regime from Rs 5,000. The budget kept the fiscal deficit target for FY24 at 5.9% of GDP and increased capital spending to 3.3%. For direct taxes, an increase in income deduction to 7,000 under the new tax regime and no tax for the first 3,000 under the old regime. The Union budget has been pragmatic, given the government's tight rope between managing the budget deficit and relieving residents of high inflation. Higher capital spending, a roadmap to reduce the fiscal deficit and reviving consumption will give the economy a big boost, especially at a time when global growth has been hit hard by slowdown and recession fears.  

Finally, the overhaul of the income tax structure should put more money in the hands of middle-class taxpayers, which would boost consumption and encourage greater allocation to multiple investment opportunities. Overall, it would leave more people with extra cash on their hands and smiles on their faces. The NDA government's last full budget was not populist, as some had feared, but continued on the path of fiscal caution with minimal changes to tax proposals that reflected the government. s Boost for stability in the control system. While the push for a new tax regime has gained momentum and offers relief for those who choose to do so, HNIs have been hit both ways, as the reduction in the top surcharge rate benefits them, while capital gains and MLD limits could hurt them to some extent . Real estate companies in the affordable segment could benefit, while companies in the ultra-high-end segment could be affected. An increase in capital spending and rail investment is a welcome move that could trigger many other private sector investments and boost income growth. Including payments to MSME u/s 43B could be irritating for large companies and have unintended consequences. Bond Street is immediately relieved as borrowing estimates are within expected levels. Equity markets immediately responded well to the regulations as there were no major unexpected negative impacts and fiscal prudence was observed. Markets will now look forward to the other triggers to see the US Fed meeting result, RBI MPC meeting result and third quarter corporate results from now on. In summary, I would say that this budget is prudent, progressive and pragmatic.

Resistance: 17700, 17900, 18200

Support: 17500, 17300, 17100