Last week in a nutshell
Paytm shares are taking a hit, dropping 20% for the second day straight after RBI's clampdown on its lending operations. An external audit uncovered non-compliance with regulations and issues regarding Paytm's books. Brokerages like Macquarie and Jefferies downgraded the stock and slashed target prices.
Elon Musk's $56 billion pay package from Tesla was rejected as a judge deemed it unfair to the company's shareholders. In 2018, Musk's compensation was set up, allowing him to potentially own 12% of Tesla. Despite concerns, 73% of Tesla's shareholders approved this in 2018.
The 2024 interim budget was announced, and here’s the interesting part. This budget focuses heavily on India’s infrastructure, showing great potential for the sector’s growth. Continuing its focus on infrastructure development, the Budget proposed to raise expenditure—for the fourth consecutive year—by 11.1% to ₹11.11 lakh crore.
2024 Budget: More solar, housing & railways
The Great Indian Railway: 2 new rail corridors under DFC and 3 additional corridors for energy, cement, and minerals are being set up. More metro trains and Namo Bharat trains are set to reach additional cities, enhancing connectivity.
Going Solar: PM Modi's solar power schemes aim to save households ₹15,000-18,000 annually with rooftop solar panels.
Home is where the heart is: PM Awas Yojana Grameen is on track to achieve 3 crore homes, with plans for 2 crore more to meet rising demand.
Good health for all: Ayushman Bharat now covers all workers under the ASHA scheme, expanding healthcare coverage.
The dream home project: A new scheme assists people living in unorganized colonies for buying or building homes, potentially boosting steel, cement, and building material industries.
Non-stop innovation: A corpus of 1 lakh crore with 50-year interest-free loans for sunrise domains promises exciting opportunities in emerging sectors.
The Economic Boost: Capital expenditure target for FY25 sees an 11.1% increase to Rs 11.1 lakh crore, constituting 3.4% of GDP.
Tour de’ India: States encouraged to develop tourist centers with long-term interest-free loans, potentially boosting tourism and hospitality.
What our expert says
The Interim Budget is positive and growth-oriented, maintaining a balanced fiscal deficit while emphasizing key sectors like Infrastructure and Housing. High capital expenditure is driving long-term economic growth, and the lower fiscal deficit is positively impacting bond yields. The focus on corridor port connectivity is set to reduce turnaround time, benefitting the economy. It's important to note that this is an interim budget, with the final version expected post-election.
To capitalize on the sectoral growth of the infrastructure sector aided by the schemes and initiatives outlined by the budget, Stack Wealth has curated a mutual fund portfolio consisting of top-performing infrastructure-focused funds. Explore our "Building India" portfolio which has earned up to 37% returns p.a. based on historical performance.
