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Budget Optimism Lifts Markets: Defence, Consumption, and Housing Sectors in Focus
Budget Optimism Lifts Markets: Defence, Consumption, and Housing Sectors in Focus
Written by - Fisdom Research
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January 31, 2025
2 minutes
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Market Snapshot
Indian markets closed higher for the fourth consecutive session, driven by optimism ahead of the Union Budget on Saturday. Investor sentiment improved after Prime Minister Narendra Modi invoked the Hindu goddess of wealth, hinting at possible government measures to boost consumption, particularly for the poor and middle class.
Market participants are closely watching Finance Minister Nirmala Sitharaman’s budget announcement for FY2025, scheduled for February 1. Expectations are high for personal income tax reductions and increased rural welfare spending, as policymakers aim to stimulate demand amid slowing economic growth.
Concerns persist over subdued consumption, driven by rising prices and stagnant wages, making budgetary measures crucial for economic revival.
Sectoral Trends
Sector Name
% Change
Sector Name
% Change
NIFTY CONSUMER DURABLES
2.4
NIFTY AUTO
1.7
NIFTY FMCG
2.0
NIFTY PSU BANK
1.4
NIFTY REALTY
1.9
NIFTY METAL
1.2
NIFTY OIL & GAS
1.9
NIFTY MEDIA
0.9
Top News
Defence stocks surged 3-5% on January 31, as investors anticipated higher budgetary allocations focused on modernisation and self-sufficiency in the sector.
Consumption stocks rebounded sharply, with Nifty FMCG up 2% and Nifty Consumer Durables rising 2.3%, as investors bet on potential government measures to revive demand.
Affordable housing stocks gained up to 3%, driven by speculation that the Union Budget may revise the property value cap under PMAY to ₹50 lakh in metro areas, improving housing affordability.
Shreeji Shipping Global files draft papers with Sebi to raise funds via IPO
Technical Outlook: Key Indices
Indices Name
Support
Resistance
Nifty
23,300
23,700
Bank Nifty
49,000
50,300
Top Gainers and Losers
Top Gainers
% Change
Top Losers
% Change
TATACONSUM
6.2
BHARTIARTL
-0.8
BEL
5.5
ITCHOTELS
-0.8
TRENT
4.6
JSWSTEEL
-0.7
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