Corporate Grapevine

Published: Dec 29, 2021
Updated: Dec 29, 2021

Schaeffler India: All verticals did well in Q3CY20

The stock market has given a big thumbs up to Budget 2021, which was tabled in the Parliament by the Finance Minister just as India kickstarted its nationwide vaccination campaign.

The Sensex — the most popular index based on prices of 30 pivotal stocks quoted on the BSE — surged to cross a historic all-time high of 50,000 and the Nifty — the darling of marketment based on 50 leading shares quoted on the NSE — scaled a new all-time high of 14,000. Within 3 days of the budget proposals, the market capitalization of BSE stocks jumped to an all-time historic high of Rs 200 lakh crore! Needless to say, investors are jubilant as the FM has not harassed investors, belying their fears about a super-rich tax, a Covid tax, a capital gains tax or a dividend tax. “We have never BUDGET 2021 Growth booster, but ground work is key seen such a pro-investor budget,” maintains Pawan Dharanidhar, a septuagerian investor

The big question is whether and when the party will stop. None of the private sector companies, including Reliance, Birla and Adani, is planning any big- ticket capital expenditure and many of them are expecting capex to start only around 2021-end. Earnings, however, could recover to pre-Covid levels in the current calendar year

So, will the party stop, and if so, when? Analysts say if the government is unable to quell the farmers’ agitation and lose the Bengal elections, it will be bad news for the market. The long-term outlook for analysts and based on market sentiment will depend on how fast and to what extent this unique budget is implemented.