Union Budget 2021: Who Gained & Who Lost?

The Union Budget 2021 announced today by Finance Minister Nirmala Sitharaman attracted huge criticism, especially from the Telugu states. The Finance minister sanctions for Tamil Nadu and other southern states but snubbing the Telugu states’ demands once again is fueling more angst.

Apart from the center and finance ministries’ biased budget this year, there are fields that gained and there are losers with the budget announcement this year. While the pandemic took a hard toll on the economy the recession joined it to impact the same. Let us have a look at the winners and losers with the budget announcements.

Winners

Real Estate & Construction

The new development finance institution to meet funding requirements for infrastructure projects will be highly benefitting the Real estate developers. Established infrastructure developers L&T Ltd and KCR Constructions Ltd and IRB Infrastructure Developers Ltd will be among the benefitted. Other players Godrej properties Ltd., Oberoi Realty Ltd, and DLF Ltd also likely gain.

Hospitals

Healthcare is underlined as a priority this year, due to the effect of the pandemic. The Finance minister is increasing the health care spending by 137 percent this year, an improvement over around 2 percent GDP that our country spends usually on health every year. The budget announcement improving health care extended the shares of hospital operators Apollo, Max healthcare, Narayana Hrudayalaya, Thyrocare tech, Dr. Lal path labs, etc.

Metal makers

The announcement of 11,000 km of highways and metros along with the rapid rail transport projects for 27 cities brought the stocks up of metal companies that provide steel and aluminum. Jindal Steel Ltd, JSW Steel, Tata Steel, and Hindalco Industries, Vedanta, Hindustan Zinc, and Hindustan Copper Ltd, and others have seen the stock price increase.

Banks

The announcement about the asset management company formation to take over stressed assets of banks to clean up bad loans is benefitting state-run banks like State Bank of India, Bank of Baroda, Canara Bank, Union Bank Of India, Bank of India, and Punjab National Bank.

Textiles

Seven mega textile parks establishment announcement benefits Century Textiles, Raymond, Trident, and Arvind Ltd among many others. The parks are planned to be launched in three years.

Losers

Farmers

Amid the protests to revoke the farm laws and the stubborn stand from both sides, the budget has nothing much to benefit the farm sector. There were no significant or major announcements to boost consumption in the rural economy, not that benefit farmers.

IT Firms

Nothing much was presented today that would boost the future of IT companies, which include, TCS, Infosys, Wipro, HCL Technologies, Tech Mahindra.

Bonds

164 Billion dollars borrowing plan for the new financial year affected India’s sovereign bonds. The center is ahead in plans to raise another 800 billion rupees by this fiscal year, with an existing projection of a record 13.1 trillion rupees of debt sales.

Exporters

The solar and mobile-phone equipment and auto parts will see a rise in import tariffs. In an attempt to boost local manufacturers and the economy through ‘self-reliance’, the trade policies are among them that raised concerns.