The markets have been rallying over the past few days factoring in a boost for consumption and leg-up to consumer buying and the Finance Minister did not disappoint. Let’s hear in what leading market experts have to day.-
Nilesh Shah, MD – Kotak Mahindra AMC said, “The Budget delivers on the expectations of Triveni sangam of reduction in fiscal deficit , support to urban consumption through tax cuts and increase in Capex through center , state and PSUs allocation.”
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services added that, “It is a fine balance between growth and fiscal prudence… great effort to boost near-term growth, consumption while not keeping the eye off fiscal prudence. Focus on rural, farmers, SMEs will help in job creation , spending. Focus on reducing ease of doing business. Last few days the stocks have been rallying , that’s factored in a bit of the boost for the consumption and spending that FM announced. However, the long-term is positive and that is what helped the recovery in afternoon trade.”
Amisha Vora, Chairperson and Managing Director, PL Capital pointed out that, “The Budget was a bold and decisive one to spur economic growth by reviving consumption. With no income tax on income up to 12 lakh, the Budget has ensured that the middle class has more disposable income in its hands. This is positive for sectors like consumer durables, travel, tourism, auto, jewellery, delivery, and ecommerce. The moderate growth in capital expenditure over revised estimates is still good. Increasing capex in data centers, PLI-led capex, PSU capex, and state-level capex will collectively drive robust growth in the manufacturing sector. At a macro level, India remains one of the world’s fastest growing economies. In 2025, investors will make money, albeit at a slower pace. Right stock picking will be key to creating wealth. While other factors like Trump’s policy moves, Fed’s interest rate decisions and ensuing currency outlook will be important determinant of market moves, I believe Union Budget 2025 has done its job well.”
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