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Ashishkumar Chauhan of NSE praises the Budget, highlighting its tax relief for the middle class, increase in capital expenditure to Rs 11.2 lakh crore, and control of fiscal deficit at 4.4%. He appreciates the balance between growth-oriented measures and fiscal responsibility, giving the Budget a perfect score of 10 out of 10.

Budget 2025 prioritizes consumption over capex, impacting market trends. Tax relief boosts disposable income, benefiting FMCG and retail stocks, while infrastructure and capital goods decline. Analysts stress fiscal prudence, RBI policies, and global factors in shaping long-term market momentum.

Sensex and Nifty closed flat Saturday as gains in consumption stocks from tax cuts were offset by infrastructure losses after a modest capex hike.

Ravi Dharamshi of ValueQuest Investment Advisors highlights real wages below pre-COVID levels and the necessity of supporting consumers in the Budget. He emphasizes the importance of private investment and real estate in sustaining economic momentum. There is an observable shift in market focus from capex to consumption-related themes, warranting cautious investments in consumption stocks.

The budget continues the trend of fiscal prudence with a focus on reducing fiscal deficits over the next six years. While there is a short-term boost to consumer relief, there is a slight reduction in capital expenditure, impacting market sentiment towards capex stocks.

The government set a capex budget of Rs 11.2 lakh crore for the next fiscal year, slightly up from Rs 11.1 lakh crore in FY25. Following the announcement, shares of L&T, J Kumar Infraprojects, Ahluwalia Contracts, and KEC International dropped up to 5%. KNR Construction and H.G. Infra Engineering erased earlier gains, correcting up to 6.4% by 2:15 pm.

Finance Minister Nirmala Sitharaman raised the income tax exemption limit to ₹12 lakh in Budget 2025, benefiting millions and potentially increasing equity investments. However, analysts caution that market impact depends on broader economic conditions and investor behavior.

Indian Hotels: Hotel and tourism stocks surged up to 10% as Budget 2025 announced major tourism sector boosts. Key measures include developing 50 top tourist sites, expanding MUDRA loans for homestays, enhancing medical tourism, and launching a modified UDAN scheme for regional connectivity. Investors anticipate strong sector growth, job creation, and improved infrastructure.