Banking and finance companies hopeful of good budget

During the bloodbath in the market on Wednesday, only stocks that manage to stay afloat in the green was banking and finance stocks. Maybe it is simply because the ritual of the annual Union Budget is actually all about finances, albeit the nation's finances. 

To achieve the job creation and credit growth objectives, the government needs a definite focus on the banking sector. Attracting new investments into infrastructure and manufacturing is key to economic growth. The market is also patiently awaiting the blueprints of the recapitalization bonds announced for public sector banks. 

Among the expectations of the banking sector is a proposal that government extend tax deduction benefits to Bank Fixed Deposits as well. Banking experts have stressed upon the government that the upcoming Budget should focus on the implementation of reforms and resolution of NPAs. Also, the budget should focus on refinement of bankruptcy and insolvency laws, give more clarity on digital payments and digital currencies. Banks are also asking for incentives to adopt and provide digital banking infrastructures such as Micro ATMs.

Banking and finance index was the only indices in the green. Nifty Bank was at 27,379.45 points, up by 0.40, Nifty Pvt Bank was at 15,309.25 points, up by 0.52 per cent and Nifty Fin Services was at 11,262.15, up by 0.48 per cent. While S&P BSE Bankex was at 30986.13, up by 0.40 per cent and S&P BSE Finance was at 6157.81, up by 0.25 per cent.