Budget day disappoints stock market investors with no major changes or surprises announced. Government prioritizes fiscal prudence over populism, and setting fiscal deficit at 5.1%, better than expected. 5 takeaways for stock market investors: boost in capital expenditure, push for EVs, focus on railway projects, expansion of Lakhpati Didi scheme, and promotion of rooftop solarization.

IDBI Bank and Container Corporation shares saw an increase on February 1st after the government set a divestment target of Rs 50,000 crore for FY25. Other divestment targets such as Shipping Corp and BEML were also trading higher. The government has faced roadblocks in divesting its stakes in these companies, but with the higher target for FY25, investors are hopeful it will be completed.

The interim budget was presented before the upcoming general elections and focuses on maintaining government functioning rather than proposing new taxes. It highlights the achievements of the outgoing government and sets goals for the next term. The GDP is expected to be lower than anticipated, but revenue growth has exceeded targets.

In the upcoming financial year of 2024-25, Indian Railways will receive a budget of Rs 2.52 lakh crore for capital expenditure, which is 5% more than last year's allocation. The funds will be used to build tracks and improve facilities for safety. The Dedicated Freight Corridor Corporation of India will receive a budget of Rs 4,155 crore, significantly lower than the previous year.

Within just two years, the Indian government has significantly increased the budget for cybersecurity projects from Rs 30 crore to Rs 750 crore. This decision comes in response to the rampant cyber attacks on government institutions, with a notable incident of ransomware affecting AIIMS in 2023. In 2022, CERT-In handled over 1.3 million cybersecurity incidents, highlighting the need for increase.

Modi government's interim budget for 2024-25 focused on key schemes such as MGNREGA, Pradhan Mantri Awas Yojana, Ayushman Bharat, Mission Shakti, and PM Gram Sadak. These initiatives aim to address challenges of employment creation, rural demand, and women's empowerment. The budget allocated significant funds for MGNREGA, PMAY, Ayushman Bharat, Mission Shakti, Jal Jeevan Mission.

The Interim Budget for 2024-25 proposes to keep consumer goods prices unchanged by retaining current tax rates. This follows a similar decision in the previous budget. The move aims to provide stability and avoid any major changes. However, the consumer sector is facing challenges such as lower demand, inflation, and impact of natural disasters, which may affect sales and profits.

The Finance Minister did not make any changes to the capital gains structure and debt taxation in the recent interim budget for 2024. Tax experts were expecting a rationalization of this structure, as different assets are currently taxed differently. Asset management companies were also hoping for a roll back of last year's debt taxation changes, but nothing was announced.

Prime Minister Modi announced the Pradhan Mantri Suryodaya Yojana, a rooftop solar programme for 1 crore households, on the same day as the consecration of the Suryavanshi Ikshvaku deity in Ayodhya. This budget also demonstrates the government's commitment to sustainable and inclusive growth, with a focus on strengthening rural infrastructure and generating jobs in rural areas.

The budget announcement of lower borrowing programme and decrease in bond yields led to an increase in trading and surge in Nifty PSU Bank index. PSU banks saw notable gains, with analysts attributing it to their higher proportion of government bonds and potential inclusion in global bond index. The government also lowered its fiscal deficit targets for FY24 and FY25.

The Finance Minister has lowered the allocation for fertiliser subsidy by 13% to Rs 1.64 lakh crore in FY25, citing a drop in international prices and government initiatives to promote bio and organic fertilisers. The government aims to reduce expenditure on subsidies for indigenous urea through schemes like PM PRANAM and Market Development Assistance. However, global regulatory changes.

The Indian Finance Minister announced financial assistance for the procurement of machinery to support biomass collection and mandated the blending of compressed biogas in CNG and PNG. This move aims to reduce reliance on crude oil imports and promote a greener future, with a phased implementation starting in FY26. A Central Repository Body will monitor the blending mandate.

PSU stocks traded mixed after FM's budget speech. Capital expenditure budget raised by 11.1% for FY25, but lower than expected. Railway stocks like IRCTC and Rail Vikas Nigam slipped due to plans to convert bogies into Vande Bharat standards. Defense stocks went down as no mention of allocation for indigenisation. PSU banking stocks like IOB and PNB surged after reduced borrowing plan.

The Indian government encourages spiritual tourism and plans to develop tourist centers with interest-free loans. Taxpayers can utilize their leave travel allowance for domestic trips with family, but must keep proof of expenses and limit claims to airfare or first-class train fare. Failure to provide documents may result in penalties for tax evasion.

According to the budget documents, the Indian government plans to receive a dividend of Rs 1.02 lakh crore in 2024-25 from the Reserve Bank of India and state-run banks. This is lower than the revised estimate of Rs 1.04 lakh crore for 2023-24. The increase in the current year's estimate is due to the RBI transferring a larger dividend of Rs 87,416 crore in May 2023.