The Union 2025 budget provided significant tax relief for the middle class, but the Indian stock market has been largely indifferent. In the midst of mixed reactions, Akshat Shrivastava, founder of Wisdom Hatch and expert in finance, provided its information on how tax reductions could reshape the economic landscape of India.
“If you do 12 lakhs, you will save between 80k and 1 Lakh INR,” noted Shrivastava, highlighting the direct impact of the tax reduction of the Minister of Finance Nirmala Sitharaman. He estimated that around 1.4 taxpayers would benefit from these savings, amounting to around 1.4 Lakh crores – a substantial sum which could either be transferred to expenses or savings. “This will stimulate the history of domestic consumption in India,” he added, suggesting that tax relief could have large-scale effects beyond immediate financial advantages.
However, despite the potential stimulation of disposable income, the reaction of the stock market was disappointing. The Sensex increased by 5 points to close to 77,506 on Saturday, while the NIFTY slipped 26 points to 23,482. Shrivastava observed: “The stock market has not really shown any positivity because the Indian market is not Still not attractive for foreign investors. ” He attributed this to the slower economic growth rate of India, which reduces the feeling of investors.
Shrivastava remains cautiously optimistic, stressing that increasing demand for private consumption could possibly attract foreign investments. “Hopefully, with greater demand for private consumption demand, foreign investors will also see high performance opportunities in India. Let’s wait and look at it, “he said.
Market experts share similar feelings. Vinod Nair, research manager at Geojit Financial Services, said: “The market responded to the Union budget with a mixed vision, mainly due to the modest increase of 10% in annual CAPEX sliding for the financial year 26, not exceeding expectations. ” He added that sectors such as railways, defense and infrastructure, which generally influence market performance, have seen limited gains. On the other hand, the consumer -based sectors, which should benefit from an increase in available income, have had a moody impact because of their modest representation on the wider market.
Ajit Mishra, vice-president director of research on Religare Brouking, added: “The impact of the Union budget could persist during the next session, especially in the consumer sectors.” He noted that the NIFTY could hover around current levels while investors expect clear signals, the next season of profits likely to influence market movements.
