Big Tax Relief to Middle Class | Consumption Stocks Gain ??

In the Union Budget 2025, the government has given big tax relief to taxpayers by increasing the direct tax exemption from ?7 lakhs to ?12 lakhs. However, there are no changes in the capital gain tax. The market did not react positively to the news.

The market's tepid response was attributed to concerns over the government's capital expenditure plans. The budget outlined a capital expenditure of 11.2 trillion rupees for the fiscal year 2025-26, leading to declines in infrastructure and industrial stocks.

Conversely, the budget's proposal to reduce personal income tax rates aimed at boosting consumption had a positive impact on sectors like fast-moving consumer goods (FMCG), automobiles, and real estate.

Additionally, the real estate sector observed positive movements. However, the insurance sector faced challenges, as the new tax benefits reduced the attractiveness of certain insurance products.

This week, the Nifty 50 and Sensex rose by 1.69% and 1.73% respectively. The Nifty 50 closed above the 23,450 level while the Sensex closed above the 77,500 level.

Stock Spotlight ??

Top Gainers ??

Sobha - ?1,375.90 (+21.06%)

Inox Wind - ?171.88 (+20.29%)

Macrotech Developers - ?1,280.15 (+16.42%)

Zensar Tech - ?967.75 (+16.35%)

Phoenix Mills - ?1,764.40 (+16.32%)

Top Losers ??

Whirlpool - ?1,176.35 (-27.43%)

Anant Raj - ?638.40 (-21.19%)

Apar Industries - ?7,400.70 (-20.52%)

Vedant Fashions - ?973.40 (-14.06%)

CAMS - ?3,537.30 (-13.75%)

Sectors in Focus ??

Consumption ??

In the union budget, the government has greatly relieved taxpayers by increasing the tax exemption limit of ?12 lacs from ?7 lacs. This will increase disposable income, directly contributing to increased urban consumption.

The stock market reacted to the news positively as the Nifty India Consumption Index was up 3.14% yesterday. However, the market has discounted the future growth already. We’ll get to see the positive outcomes in Q1 FY26.

IPO Insights ???

This week, Denta Water and Infra got listed at a 10.5% premium, The listing was way below the market expectations due to the recent downturn.

Dr Agarwals’ Health Care IPO closed this week. The IPO received a poor response from HNI and Retail investors as these segments were not fully subscribed.? The QIBs saved the day. Currently, the IPO is listed to list flat.

As of now, no mainboard IPO is expected to open next week.

That’s all for this week.?

We’ll see you again next week ??

Happy Investing!