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Research Periodic Report 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

January 31, 2025 2 minutes

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

Trade Ideas Update

  • Our trade ideas success rate has 67% over the past month, even with increased volatility in the benchmark index. Follow Trade Ideas for timely stock insights.
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