Market Bizzz

The Budget has been praised by Atul Lall, VC & MD of Dixon Tech, for its favorable impact on the electronics industry. Key measures include the rationalization of the duty structure for IFPD, reduction of duties on mobile components, and regulatory reliefs. These changes are anticipated to significantly boost manufacturing and overall industry growth.

While many were talking about the need for interest rate cuts, the real issue at this point was the slowdown in consumption. The government has put money in the hands of people at the lower end of the income spectrum through tax reductions. This was the need of the hour and, in that context, it was the right budget for this stage of the economic cycle.

There was a visible shift in tilt towards supporting consumption through lower taxes on middle class households, relative to the public capex-driven growth push witnessed over the past few years. Through this budget, the consumption story gets the much-needed push, while the capex story continues broadly as earlier.

The budget aims to balance fiscal discipline, infrastructure growth, and middle-class support. It highlights a target to reduce the fiscal deficit, increase capital expenditure, and overhaul the new tax regime to boost consumption. The focus on growth with fiscal prudence is set to enhance economic prospects.

Ajay Bagga highlights concerns over India’s financial health, pointing out unsustainable government debt levels compared to household income. He emphasizes the need for significant monetary policy measures, which typically take months to impact the economy. Sector-wise, IT and public sector banks are expected to perform well, while global uncertainties like US tariffs and China’s stimulus also weigh on market sentiments.

Top brokerages suggest investment themes for Budget 2025, highlighting sectors like infrastructure, defense, and railways poised for significant growth. Analysts expect increased capex allocation and fiscal deficit targets, alongside potential boosts for financials, health, consumption, automobiles, real estate, and power sectors.

IndusInd Bank reported a 39% year-on-year decline in standalone net profit for Q3FY25 to Rs 1,401 crore, surpassing Street estimates. Interest income rose 11% YoY, while deposits grew by 11%. However, net interest income fell, NIM contracted, and asset quality deteriorated with higher NPAs.

Shares of Senco Gold will trade ex-bonus from Friday due to a 1:2 stock split, with January 31 set as the record date to determine shareholder eligibility. Each Rs 10 equity share will be divided into two Rs 5 shares, doubling the share count but keeping the investment value unchanged.

JBM Auto shares are trading on an ex-split basis after a 1:2 stock split, effective from January 31, 2025. This move subdivides each share of face value Rs 2 into two shares of Re 1 each. This is the company’s third stock split, following previous splits in October 2014 and February 2022.

Sandip Sabharwal highlights that for foreign investor flows to return to Indian equities, the US dollar rally must stop and Indian economic growth must revive. He suggests the Budget could include measures like tax cuts and increased capital expenditure. He also notes mixed earnings reports and the potential challenges real estate and consumer durable sectors may face.