Business New: PM Modi, FM Sitharaman Consult Economists; TCS Q1, RBI GIFT City, Reliance Jio IPO, Stock Update, Budget 2024 Demands, Raymond, Fintech Impact

In view of the upcoming Union Budget, likely to have a focus on job generation, Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman held a meeting with top economists and experts. According to the available information, some cream among the experts included Surjit Bhalla, A K Bhattacharya, and K V Kamath. The new vice-chairman of the Niti Aayog, Suman Bery, also attended the meeting. Yet the budget, scheduled for July 23, will have to plot a course to establish India as a developed nation by 2047. The economists have also recommended reliefs in taxes to win back consumption and contain core inflation. The economy grew at the rate of 8.2 percent in just-ended 2023-24.

Tata Consultancy Services is soon going to announce results for the June 2024 quarter, where investors will watch out for more than one or two metrics. Street is estimating 1.5 per cent sequential revenue growth at Rs 62,170 crore. Margins may well contract by 150 bps as a Q1FY25 wage hike would neutralize the fall in the rupee, but how TCS fares in the BFSI and retail sectors, the management view in terms of demand and the deal pipeline would be an even more exciting set of factors to watch.

RBI has widened the scope of foreign currency accounts at GIFT City, now allowing Indian residents to utilize them for a wider range of purposes under the Liberalised Remittance Scheme. This shall include all remittances for education and treatment and, in the case of investments, in addition to what is already allowed, which will surely enhance the status of GIFT City as an international financial hub. This would attract more global financial players and attract greater financial services with spillover effects on the local economy.

Reliance Jio Infocomm Ltd, the subsidiary of Reliance Industries Ltd, is reportedly getting ready for a mega IPO by 2025, which is believed to value it at more than Rs 9.3 lakh crore. According to Jefferies, tariff hikes that Jio has blindly been implementing of late, strategic priorities on market share, and monetization drive a solid case for the IPO. The IPO would largely be an offer for sale by the minority shareholders; this was the same case with Jio Financial Services in 2023.

Opening higher, Indian markets rose as the BSE Sensex gained 0.18 percent to 80,066.57 and the Nifty50 surged by 0.20 percent to 24,373.95. Tata Steel, TCS, and ICICI Bank emerged as top gainers in the session where ITC, HDFC Bank, and M&M remained laggards. On the sectoral front, Nifty IT led with a rise of 0.69 percent. Global equities rose following an all-time high in the Nikkei of Japan, while US stocks ended higher amid optimism over the economy from data released.

Ahead of the Union Budget 2024, the Indian insurance industry is expecting tax relief in the form of lower goods and services tax rates on health insurance and other such products, higher deduction limits for premiums under Section 80D, and incentives on premiums relating to cyber and electric vehicle insurance. The industry leaders are pitch-banking the same on the ground that these can help improve affordability, accessibility, and sustainability in insurance. Further details on these, it is expected, will come out on the budget presentation day, July 23, 2024.

Raymond's stock fell 40 percent after trading ex-demerger with the separation of its lifestyle business. The stock, however rose 4.5 percent to Rs 2,037 on Thursday against overall market weakness. Separately, listing of demerged Raymond Lifestyle or RLL by August or September 2024 against a 4:5 share swap ratio for its shareholders. Experts say Raymond Ltd's real estate business merging into Raymond Realty has created three clear listed entities—Engineering, Auto, and Defence. Analysts see further upside and recommend buying in the range of Rs 1,960-2,000 for targets at Rs 2,400.

As Finance Minister Nirmala Sitharaman begins her daunting task for the 11th Budget under Prime Minister Narendra Modi-led government, hopes are high to have policies that will expedite India's promising Fintech sector. Increasingly, the budget will ride on FinTech innovations, adding to Financial Inclusion with a digital infrastructure in rural areas—empowerment of MSMEs through easier access to credit and a clear regulatory framework. It has also been :- Strategic partnerships between public sector banks and fintech firms to emphasize financial inclusion, further increasing the reach of banking and technological integration, is expected to bring immense economic and social advancement.