Budget 2022 has focused around the steps to revive the economy by providing opportunities for productive spending, simultaneously controlling inflation. This report encapsulates the reaction of Stocks Markets, G-Sec Bonds, Exchange Rates and FPI Movements to the Union Budget presented by FM Nirmala Sitharaman on the 1st of February, 2022.
Here are a few highlights of the report:-
The stock market reacted positively; both the indices opened over 0.8 percent higher, and rose around 1.7 percent. Because of the impetus, infrastructure will function well. Further, cement and metal are expected to improve.
Indian 10-year Government bond yield climbed close to 6.9%, the highest since July of 2019 after the government in its annual budget announced the issuing of a record amount of bonds, including sovereign green bonds starting from April.
The Indian rupee fell to 74.8 per dollar as investors got anxious about the federal budget for 2022-23, which came on top of rising global crude oil prices and ongoing foreign investment outflows.
PM's Gati Shakti scheme has generated a USD 26 billion production-linked opportunity, allowing for successful partnerships and ventures with domestic and foreign investors to enhance liquidity in India. The reintroduction of FPIs will result in a large surge in the stock markets.