Budget 2020: Asutosh Mishra, Head of Institutional Equity, Ashika Group decode the announcements

Pre-Budget meetUnion Finance Minister Nirmala Sitharam is presenting the Union Budget 2020 in Lok Sabha now and so far she announced a lot of initiatives pertaining to agriculture, health and a lot more. In conversation with Elets News Network (ENN) Asutosh Mishra , Head of Institutional Equity, Ashika explains the positives and negatives so far.

“Target for Agriculture credit increased by whopping 25 percent to Rs15 lakh crore vs Rs12  lakh crore YOY. This is the highest growth target for Agriculture loans. Such a sharp increase in agriculture credit target is negative for sector as different state government continue to announce loan waiver for the segments,” says Mishra.

“Shakti Pumps and Roto pumps can be a good beneficiary of governments initiative to  fund 20 lakh farmers for installing solar pumps…,” he adds.

” By putting tax on the Medical devices tax as well funds sourced through PPP mode, government would be build more affordable hospitals under the Ayushman Bharat scheme in 112 inspirational districts to target more diseases, more hospitals would also empanelled in this scheme – positive for diagnostics companies. 

About 2000 medicines to be included in the Jan Aushadhi Kendra by 2024 – negative for pharma sector,” he says.

“Centre proposed to expand Natural gas grid infrastructure from current 16,200km to 27,000km. It is also planning to take steps for transparent price discovery for natural gas. Step is beneficial for IGL, GGL, GAIL, AGL, MGL,” he adds.

“Certain specified categories of government securities to be opened to non-resident investors, in a bid to deepen the bond market. Now FPI limit in corporate bonds increased from 9% to 15% of the outstanding stock. This will help to deepen frangible  bond market in our country.”

About Ashika Group

Ashika Group is a diversified financial services group offering Brokerage, Lending, Investment Banking and Wealth Management. Founded in 1994, Ashika Group services more than 100,000+ clients across the country. The investment banking business focuses on multiple sectors such as F&B, CPG, BFSI, Fintech and Healthcare.

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