eznews.inThe Indian government's recent budget proposal, which includes an increase in taxes on equity derivatives trading, has raised concerns among analysts and fund managers about its potential impact on domestic shares. With foreign investors having withdrawn over $3 billion from local markets since the start of 2026, the NSE Nifty 50 Index has already seen a 3.1% decline in January, marking its worst budget-day performance in six years. The budget's failure to introduce measures to attract foreign capital has disappointed many, with experts noting that the anticipated long-term capital gains tax cuts did not materialize. The government plans to borrow 17.2 trillion rupees ($187 billion) in the upcoming fiscal year, exceeding expectations, which is likely to push bond yields higher. While some sectors may benefit, the overall sentiment in capital markets remains cautious, with analysts describing the budget as conservative and lacking in immediate growth drivers. 
Published: Feb 02 2026, 1 pmeznews.inIn a significant move for the tobacco industry, the Union Government of India has announced the withdrawal of an 18% excise duty on unmanufactured tobacco, providing relief to farmers and manufacturers. This decision was formalized in a gazette notification issued on February 1, coinciding with the presentation of the 2026-27 Budget by Finance Minister Nirmala Sitharaman. The notification specifies that no duty will apply to unmanufactured tobacco or tobacco refuse that lacks a brand name and is not packaged for retail sale. The decision follows appeals from a delegation led by Tobacco Board Chairman Yashwanth Chidipothu and BJP MP D Purandheshwari, who warned that the imposition of the tax could lead to increased cigarette prices and a rise in illegal cigarette sales. However, the government has maintained the existing duties on cigarettes based on stick length.
Published: Feb 02 2026, 12 pmeznews.inThe Indian government's focus on decentralised infrastructure development in smaller cities is set to significantly boost demand for construction materials such as TMT bars and roofing sheets, insulating the sector from global price volatility. Key initiatives outlined in the recent Budget include the establishment of seven new High-Speed Rail Corridors and the operationalisation of 20 National Waterways over the next five years, which are expected to create a sustained order pipeline for the steel industry. Vinesh Mehta, Chairman of Abhay Ispat Group, described the Budget as a "demand multiplier" for steel, emphasizing the need for high-grade, value-added steel to support the country's infrastructure evolution. Additionally, targeted measures to support Champion MSMEs will enhance downstream consumption in fabrication and heavy engineering, while tax reforms are anticipated to improve liquidity for these key partners in the value chain. Overall, the outlook for India's iron and steel industry remains optimistic, aligning with the nation's $5 trillion economic ambition.
Published: Feb 02 2026, 12 pmeznews.inDuring the Budget session of Parliament in New Delhi, Finance Minister Nirmala Sitharaman unveiled the Union Budget, allocating a total of Rs 1,492 crore for the functioning of both Houses. The Lok Sabha's share is Rs 1,009 crore, which includes funding for Sansad TV, with Rs 1.56 crore designated for the salaries of the speaker and deputy speaker, and Rs 416.45 crore for MPs' salaries and allowances. Additionally, Rs 586.03 crore is earmarked for the Lok Sabha Secretariat's operational expenses. Meanwhile, the Rajya Sabha has been allocated Rs 482.99 crore, including Rs 2.55 crore for the chairman and deputy chairman's salaries, and Rs 3.36 crore for the leader of the opposition and his secretariat. A significant portion, Rs 349.37 crore, is reserved for the Rajya Sabha secretariat, covering staff salaries and operational needs, while Rs 11.70 crore is allocated for the vice president's secretariat expenses.
Published: Feb 02 2026, 12 pmeznews.inThe Union Budget for FY27 has adopted a measured approach to fiscal consolidation, prioritising increased government spending and sector-specific incentives, according to Jefferies. The fiscal deficit is set at 4.3% of GDP, a slight reduction from FY26, but higher than market expectations, which may pressure bond yields and challenge non-banking financial companies (NBFCs) and public sector banks. Key capital expenditure is projected to rise by 11%, with significant increases in defence and infrastructure spending. The electronics sector benefits from a 20-year tax exemption for cloud service providers and a substantial boost to the Electronics Components Manufacturing Scheme. The financial services sector sees increased incentives for digital payments, though a rise in Securities Transaction Tax may dampen broker sentiment. The energy sector receives enhanced subsidies for solar initiatives, while the real estate market gains from tax incentives. Overall, the budget reflects a commitment to growth through sustained investment and targeted reforms.
Published: Feb 02 2026, 12 pmeznews.inMorgan Stanley has expressed an optimistic outlook on Indian equities following the recent Union Budget, emphasizing an overweight position in Financials, Consumer Discretionary, and Industrials. The report highlights the government's commitment to technology-led growth, particularly in semiconductors, which signals a strategic shift towards advanced manufacturing. Morgan Stanley anticipates a boost in capital expenditure, sustained growth in the services sector, and an increasing focus on artificial intelligence, all of which are expected to enhance earnings growth by fiscal year 2027. The Budget aims for a fiscal deficit of 4.3% of GDP, aligning closely with Morgan Stanley's estimate, while balancing debt reduction with growth-supportive measures. This approach is seen as conducive to maintaining economic momentum without jeopardizing fiscal stability. Overall, the report reinforces Morgan Stanley's positive stance on Indian equities, positioning key sectors to benefit from the government's growth strategy.
Published: Feb 02 2026, 11 ameznews.inIn a significant move to bolster India's recycling industry and reduce reliance on imported critical minerals, the recent Budget has introduced a duty-free regime for lithium-ion battery scrap. Sanjay Mehta, President of the Material Recycling Association of India (MRAI), highlighted that this initiative will enable local recyclers to import a wider range of battery waste at lower costs, facilitating the development of processing technologies for lithium extraction. The policy aims to create a circular supply chain for electric vehicle (EV) and electronics manufacturing, while also establishing critical mineral facilities in states like Odisha and Tamil Nadu. Additionally, customs duty cuts on processing equipment are expected to enhance domestic supply chains for solar and renewable energy sectors. The Budget's focus on critical minerals and battery energy storage systems is seen as a strategic push towards energy transition, reducing dependence on China amid tightening export controls.
Published: Feb 02 2026, 11 ameznews.inIn a bid to shield India's economy from the impact of US tariffs, Prime Minister Narendra Modi unveiled the Union Budget 2026, emphasizing support for exporters and strategic sectors such as rare earths and semiconductors. The budget includes an 18% increase in defense spending amid ongoing tensions with China and Pakistan, while maintaining fiscal discipline by adhering to debt targets and avoiding broad tax cuts. Finance Minister Nirmala Sitharaman highlighted the need for India to remain integrated with global markets despite external challenges. The budget's cautious approach has drawn mixed reactions, with shares declining due to a new tax on equity transactions. Critics argue the plan fails to address pressing issues like youth unemployment and low savings. As India projects growth between 6.8% and 7.2%, the government faces scrutiny over whether its measures will be sufficient to foster job creation and economic resilience in uncertain times.
Published: Feb 02 2026, 11 ameznews.inIn a significant budget announcement on February 1, 2026, Finance Minister Nirmala Sitharaman revealed that New Delhi plans to borrow ₹17.2 lakh crore ($187 billion) for the fiscal year starting April 1, marking an 18% increase from the current year and surpassing analysts' expectations. Following the announcement, India's benchmark 10-year bond yields surged to 6.78%, the highest in over a year, with projections suggesting they could reach 7% soon. This rise in borrowing costs poses challenges for an economy already grappling with high US tariffs and limited room for interest rate cuts by the Reserve Bank of India (RBI). The budget deficit is expected to ease slightly to 4.3% of GDP, but gross borrowing is sharply higher due to increased bond redemptions. The RBI is anticipated to enhance its bond purchases to maintain liquidity, as traders await its monetary policy decision on February 6.
Published: Feb 02 2026, 10 ameznews.inIndian bonds are set to open significantly weaker on Monday following the government's announcement of a larger-than-expected borrowing plan for the upcoming fiscal year. The benchmark 10-year bond yield is projected to rise to between 6.71% and 6.77%, up from Friday's close of 6.6963%. The federal budget unveiled on Sunday revealed a record gross borrowing of 17.2 trillion rupees ($187.38 billion) for 2026-27, exceeding market estimates and reflecting a 17% increase from the current fiscal year. Analysts noted that the budget lacked incentives for bond investors, contributing to market unease. The Reserve Bank of India’s recent bond purchases may provide some support, having infused over ₹10 trillion into the banking system this financial year. Meanwhile, overnight index swap rates are expected to face upward pressure in line with rising government bond yields.
Published: Feb 02 2026, 10 am
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