Reality of Budget 2024. And, its impact on stock market | Akshat Shrivastava

hi everyone welcome to today's video so on today's video I'm going to discuss with you the recent budget I'm going to present the entire budget in 10 simple points there are good points bad points I'm going to help you understand the economics behind it I'm not supporting the political parties I'm not opposing them I have nothing to do with politics I'm just trying to teach economics and the implication of this Budget on certain stocks so very simple 10 points I will go Point by point the first point comes from Mr rajat Singh and here is the tweet that you can see he has congratul MRSA everything good for all the sections of the society Etc most important line that he has written is that this budget has increased the capital expenditure outlay to 11.1% from Financial year 24 to 11.1 lakh CR for financial year 25 just to set some context what is capital expenditure basically capital expenditure is good expenditure basically roads infu that isal Capital expend is productive in nature that is good for the economy because so therefore capital is good so yes that is there in 2023 the total capital expenditure was 10 lakh now it has been year marked at somewhere around 11.11 lakh so% right no doubt about that this is a positive in the budget we should all appreciate it this is point one and this is one of the biggest thing that has happened in this budget so this is point number one now related Point number two which is the focus on infrastructure development so that is there but why is this thing critical recently anoun that way you will be able to understand and relate this budget to whatever is happening in your life so recently report CA right and is per as per this report it says that nearly 700 aircrafts in India are going to be out of 700 aircrafts in India 200 are going to be grounded by March of 2024 will not function ticket that is going to Skyrocket right so this is something that is imminent it is going to happen now comes the most important question so the back story is that in the last 10 years the number of air Travelers have gone up by four to five times 45x grow but number of airports have roughly doubled they have not gone up by four or five times number of aircrafts have roughly doubled have not gone up by four or five times what I'm trying to tell you is that when this demand of certain thing for example air travel has gone up massively andru so what will happen prices will go up when it comes to travel know what is this that yes a part of it is there but we also need to acknowledge the fact that a lot of infrastructure needs to get built in India so capital expenditure Lagana and infrastructure Focus are critical aspects that have been done in this budget so to say which is good more precisely mineral cement Railway fre like just to summarize very critical points see overarching development is happening in the infrastructure space no doubt about that all that is good good stuff to what extent are the benefits passed on to the eventual citizens that remains to be seen bridge vanata in Mumbai I think and the monthly pass that you'll have to buy is 12 a half thousand yeah most of the Indians cannot afford that so it's inaccessible this type of infrastructure construction but this will go into what capital expenditure so Point yes capital expenditure is good as long as you get to use it at sensible prices so this is where I will stop this point to it's good point again nothing wrong with that third is tourism sector I've been spending my time most of it is in Goa for the last two two and a half years Goa is a tourism State this is a topic that I can speak at length about I run my airbnbs experien I get to see that almost 35% of goa's population entirely depends on tourism this is not just the situation in Gua this is a situation across a bunch of states in India and tourism pre so definitely it's a very good sign very healthy sign this is something that you can see from this tweet the success of G20 events organized across 60 cities has helped tourism including spiritual tourism are booming and states will be encouraged to develop develop tourism circuits and Market them globally okay and this is something that you will realize if you travel in India and if you travel outside India so right now I'm traveling outside India I keep on traveling outside India also and I keep on traveling within India also I get to observe a lot of points so tourism under one tag we cannot Target because when foreign tourists come to India it benefits India a lot more a lot lot more compared to a domestic tourist deciding to visit either or okay ifan one year you will go to another you might go to L and so maybe you will go there this year if you're a domestic tourist is new money coming into India the short answer is no so if foreign tourists are coming to India that is a much higher success Matrix that is the vision with which a lot of tourist destinations should be developed and need to be developed for example Ina if you go and visit the beaches the Civic sense is really poor in a country like India I'm just stating out facts for example foreign they do sunbathing right and they're wearing certain kind of clothes right now as a foreign tourist community think from their perspective what makes them comfortable and so especially liketh this happens quite aggressively lot of states right I me in the sense foreign tourists are still at much more ease compared to other states but unless Civic sense improves there is nothing that can be done so one aspect is sensitization programation for states to actually lead to this certain more stringent control needs to be there I'll give you another for example there was a tourist from Britain and I think he or she was going on benol beach right and then there was a dog which chased a buffalo and buffalo went and you know tourist so now this type of instances if they keep on happening what do you think is will be the situation of Tourism few years from now I see so currently I'm in fet in Thailand and I see and fet is a town in a way right the infrastructure here is much stronger in a way right bu roads C roads smoother roads option to eat are massive right infrastructure development needs to be there and enough incentives need to be built facilities provide and Civic sense is going to be critical from this respect so it's very very critical that you know some bit of effort is put on this but right I mean this is like a general point I don't think that this hits us per se but this is very important so two things one is that we need to figure out marketing strategies on how to bring foreign tourist that is critical that is extremely important is quality of infrastructure quality of infrastructure when businesses actually go and start building more businesses are built in India so from that respect the quality of Tourism will improve right so this is point number three point four on the budget was regarding deep Tech across different areas why because RBI came out with a mandate PM payment bank that will be banned so to say from running operations and st% one-sided rule giving on cryptos most of the people building crypto in India they left they went to Dubai they went to Singapore they went to Portugal some uniformity needs to be there if certain issues have been created by PTM it needs to be communicated if that sense of belonging is not there or if that sense of safety is not there then new money is not going to come in I mean do you think they definitely going to think about all these things all these this stuff is good but I think more effective communication needs to be done I'm not trying to take sides of PTM or RBI here RBI must be right from its bit but what I'm simply trying to point out is that the way that communication happened at least spookiness I don't think that unless you improve the VC ecosystem create that entrepreneur in Residence type of programs create that model of mentorship create that entire connect between universities funding organizations how many companies or good companies frontend companies have been built how many top tech companies have been built in India TCS infosis are top tech companies they are not unfortunately in in order to do any top end work when it comes to research I think um a lot of cognizance needs to be taken in terms of creating that ecosystem investors safe entrepreneurs they want to create understand we can go and take risks ring it should be communicated well that is the entire point I'm trying to outline right so that's next point now comes the next point which is point number five a lot of subsidy or lot of Focus has been done on rooftop solar focus and this comes under net Zer by 2070 Vision 2070 IND Vision that they are going to reduce their carbon footprint to zero so this is what PM Modi has said see what is we are in 2024 right 207 this shows Vision that India is trying to have a vision communicate it but I don't think this has any impact on you or me on immediate basis on imediate basis we are much more worried about inflation we are much more worried about accessing lowcost energy accessing regular energy that is more important for us that is more important there are two three critical facts that needs to be understood so number one thing is that almost 50% of India's energy requirements in electricity generation is met by coal okay only 25% is met through non- fossil based Energy Fuels so we are very very far off from that perspective it's not as please remember that having said this the counter argument is that the cost of solar energy production is coming down quite aggressively for example in 2015 the price of solar electricity was roughly 12 rupees per kilowatt right and now it is 1.99 per kilowatt so C come so it will become more competive isue in solar or wind it's the infrastructure cost enging procurement and construction infu very similar to charging stations right so unless this additional infrastructure is built these type of technologies will not get picked up that's a problem people in India do not have much discretionary income right the quality of construction is really poor so all those minor minor problems are there so anyways just to complete this point in context of the budget bendra yav has tweeted that 1 CR households will be unable to obtain up to 300 units of free electricity every month uh not sure right is May infrastructure provide it's not very clear yet so let's see how this plans out but again that's good news now let's speak about some bad points about the budget number one is that it did not address anything about unemployment situation in India situation right now regarding unemployment rate in India is really Bleak we are sitting on one of our highest unemployment rates postco as of now situation does not look good even people from IM I's placements have been weak in fact am I think student WhatsApp 72 students from L which is one of the top in India 72 they were reaching out to their all that stuff not a healthy situation mayom bad situ no doubt about that how will the unemployment situation I think youth not getting employment is a really weak sign situation us despite us having so many problems unemployment rate high 2020 was a bad year I really hope that which solution around this is a major problem next related point is related to psus that in the last 10 years zero psus have been created in India group a service jobs have been coming down quite dramatically and why is this being done well it's divestment aspect that the government has no business of being in business right so from that perspective they are reducing their stake right they just bringing it down over and over again letting private players take over right now is this a good thing bad thing I don't know but I hope that this does not lead to a situation comptition right it should not happen that there is hardly any competition left there are just two three oligarchies happening situation because at the end of the day you as a normal customer will pay the highest price if an oligarchy is built so government cutting its holding bringing private players in is a good sign as long as competition spirit is there if competition is just killed entirely this will lead to really bad stuff right so no mention has been there of this tax in fact last budget a lot of incentives were withdrawn for example debt mutual fund indexation benefits were done away with capital gains offsetting when people used to sell their companies and they could offset it by buying expensive real estate so nothing big has happened from that that perspective right that big ticket off setting while cheese no tax relief has been given so this is what my understanding is that this was something that could have been considered given very high tax rates in India but then again opposition would have said popul measures just before elections so not sure what the thing is then comes the final point which is regarding stock market impact infastructure I don't know if you should do that or not unless the fundamentals of the company is good please do not do that look at especially go and buy infastructure companies if you're buying it at really crazy expensive prices there can be a very long correction it can lead to a lot of trouble for you so please do not act that way buy good stuff for example according to me banks are at a good valuation I'll make a video soon around the same on top of that there are might be a handful of good infrastructure companies that might be good so you have to study all those things I will release a list I will speak more about it on my member Community also in case you guys are interested you can join it I give very fundamental commentary regarding the same I hope that you enjoyed this brief discussion on budget to watch any other video if you did do press the like button and I'll see you soon

Channel: Akshat Shrivastava

Views: 341,317

Keywords: akshat shrivastava, cases over coffee, wisdom hatch, wisdom hatch courses, stock market courses, akshat shrivastava courses, stock analysis, budget 2024, nirmala sitharaman, india budget 2024, income tax budget 2024, budget allocation 2024, finance minister india

Id: x8OtatzZE2M

Length: 17min 16sec (1036 seconds)

Published: Thu Feb 01 2024