Crucial bills such as the Goods and Service Tax (GST) Bill and the Land Bill may not see the light of the day in 2015, but the government most definitely was not sitting idle
With a number of challenges hanging over the market, it's likely to move sideways in the months ahead unless positive catalysts emerge, say strategists.
The government has managed to push through quite a few pieces of key legislations like the Insurance Bill, the Coal Bill and the MMDR Bill. Jaitley hopes that the GST Bill which will be introduced post the recess will be passed by general consensus.
The new law has further liberalised the insurance market, enabling foreign reinsurers, including Lloyd's, to establish onshore branches. The move is expected to stimulate the insurance sector and help bring in over Rs 50,000 crore in fresh capital, according to experts.
Analysts expect inflows to accelerate further going ahead following the passage of the Insurance Bill in Parliament and assurances in the Union Budget to revisit controversial issues like General Anti-Avoidance Rule (GAAR).
During 2000-01 to 2013-14, the life insurance business registered a growth of 1 percent in total premium and 21 percent in new business premium collections and non-life segment grew by 16 percent.
Sandeep Shenoy believes banking index could remain stable compared to other indices as it is an off-sided index with few large players like ICICI Bank and HDFC holding a higher weightage.
Max India, also, tops list of Edelweiss. It does not expect any earnings kicker in near to medium term but feels the move will go a long way in boosting sentiments. Edelweiss agrees that the reform will pave way for listing on bourses.
Ajay Srivastava of Dimensions Consulting is gung-ho on pharma sector and recommends not selling this space ever. He is confident that pharma is a multi-year story and investors can still make money over the next two-three years
Within minutes of Parliament approving higher foreign investment in insurance sector, a number of insurers including from Bharti, Reliance, Max and SBI groups said their overseas partners will raise their stakes in respective JVs to 49 percent.
"The passage of Insurance Amendment Bill in Rajya Sabha marks a new beginning for the Indian insurance sector," FICCI Director General Arbind Prasad said.
Sam Ghosh, CEO of Reliance Capital says Sumitomo MTB is coming in as a strategic partner to see how the company can get into universal banking together as well as get into other areas of financial services space.
After the passage of Insurance Bill in Lok Sabha, there is a buzz it will manage to pass the Rajya Sabha test as well.The assumption has already led to a fair bit of excitement in the market.
It is a strong day of trade on Dalal Street. The Nifty and the Sensex bounced back led by gains in select FMCG and energy stocks. The broader markets outperformed benchmarks, up 1 percent with the advance decline ratio at a healthy 3:1.
In pharma space, Ajay Bodke of Prabhudas Lilladher continues to remain bullish on Aurobindo Pharma with a target price of Rs 1,300 per share.
While the mines and the coal bill will most likely be cleared during this part of the Budget session, tomorrow the Insurance bill will be taken up in Rajya Sabha and will most likely be cleared by the upper house.
The passage of the bill in both the houses of parliament is critical to make an executive order, which Prime Minister Narendra Modi's administration issued in December, permanent.
Close on the heels of operationalising 49 percent FDI hike in insurance, the insurance bill itself has been tabled in Lok Sabha.
The Budget reiterated a gross domestic product (GDP) growth target of 8 percent plus but the economy continues to struggle.
The first fight Modi has to win is against his own parivar. He has to ensure that there is not a peep from them. If this does not happen, one can't see him winning the legislative war.
The Union Cabinet has decided to take the ordinance route for Coal and Insurance Bill after it was unable to get the Rajya Sabha's nod. The first round of coal auction will take place from February 14-22.
Government today approved promulgation of an Ordinance to hike Foreign Direct Investment (FDI) cap in the insurance sector to 49 percent from 26 percent, as the legislation could not be passed in the Parliament session that ended on Tuesday.
Earlier, an ordinance on coal was introduced on October 20 after the Supreme Court scrapped over 200 coal block allocations. It was valid till the January 4 as the life-span of an ordinance is only six weeks since the inception of a Parliament session.
Anil Padmanabhan, deputy managing editor of Mint says what is happening in the legislature is a decoupling of political strength. The deadlock in the Rajya Sabha is a big blow to the legislative ambitions of the NDA, particularly the BJP, he adds.
Chandan Mitra, chairman of the select panel on insurance is of the opinion that the government must take the ordinance route on Insurance Bill if Rajya Sabha is disrupted and is confident that the government will take a view on ordinance after the current session ends.