THE CENTRAL GOVERNMENT offered a big stimulus for middle class households in the Union Budget 2025-26 by ensuring that those who earn up to ₹12 lakh would not have pay any income tax in the new tax regime. This is expected to boost consumption and, hence, lead to a revival in corporate investment, which has remained tepid in recent years. The tax cut has turned the focus to stocks of companies in the consumption space. These companies had faced a demand slowdown, first in rural areas and then even in urban areas. Now, they are expected to see an increase in demand. As a result, their stocks could perform well on the markets.
Market veteran and founder of MK Ventures, Madhusudan Kela, tells Siddharth Zarabi, Editor of Business Today, that the capex theme was maintained in the Budget. For the long term, he advises investors to look at value and temper their expectations on returns, since the Bull run of the Indian markets has run into rough weather, thanks largely to developments abroad, especially the trade wars that US President Donald Trump has initiated. Kela believes in the strength of the rupee and says foreign investors, who have been "relentless" in selling Indian stocks, will return soon. Edited excerpts:
In the last few months, we have seen a pullout by foreign portfolio investors (FPIs) and consequent downtrend in the markets. But with the Budget, is it time for investors to resume their longterm investment?
Diese Geschichte stammt aus der February 16, 2025-Ausgabe von Business Today India.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der February 16, 2025-Ausgabe von Business Today India.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
VINE TO VINO
Calling all wine lovers to explore India's wine trails and vineries
TIGHT FINISHES AT TOLLY
RAZOR-SHARP COMPETITION WAS THE ORDER OF THE DAY FOR ROYAL RANTHAMBORE BT GOLF'S KOLKATA LEG AT THE HISTORIC TOLLYGUNGE CLUB
Helping More Indians Fly
We need to think and dream big, and combine that with flawless and speedy execution, accompanied by deep reforms
Fighting The Dragon
China's subsidies and export strategy have accelerated its dominance in the EV space. Amid fears of EV 'dumping', can India withstand the Chinese onslaught?
Buckle up for the Ride of a Lifetime
Many IPOs flunked, while several fell below ethical governance standards, and quite a few bombed. However, the capital markets have their own way of self-regulating excesses
❝Slow down but stay involved"
IndiQube provides flexible workspaces
Ready for Take-off
Total passenger traffic has grown from around 120 million to over 236 million per annum. Indian aviation sector continues to soar, and the best is yet to come
BURMANS IN CONTROL
After a long battle, the Burman family has seized control of Religare. It needs to infuse money and get it back on track
Reimagining India's Public Sector
India's policies since 1991 have been to get government out of business' way. Robust public sector is needed for providing basic needs equitably
No Theme Lasts Forever
A sensible investment strategy involves ignoring the noise and using a systematic criterion to pick assets. A good investment strategy can be boring
