Share Market Live Updates 3 February 2025: Sensex closes down 319.22 pts or 0.41% at 77,186.74 pts; and Nifty 50 fell 121.10 pts or 0.52% to 23,361.05 pts

The National Manufacturing Mission announced in the Union Budget reaffirms the government’s commitment to bolster industrial capabilities across sectors by promoting value addition and enhancing competitiveness. The focus on labour intensive sectors, cleantech, and MSMEs is also a welcome step.

The manufacturing sector has a vital role to play in India’s growth ambitions, and will benefit from several measures announced today including prioritising regulatory reforms to strength

en trust based regulations which will enhance ease of doing business.

Additionally, the Export Promotion Mission will coordinate action across relevant Ministries at a time when there are global headwinds. While India’s fundamentals remain strong, exports remain an integral part of our growth strategy.

IMFA is implementing downstream expansion plans, transitioning to renewable energy, and exploring options in critical minerals; thereby aligning with the national goal of inclusive and sustainable growth.

The board has declared Second Interim Dividend of Rs. 0.75.

Shares closed at ₹74.45 on the NSE, down 1.96%.

Mumbai, 03rd February 2025: Hind Rectifiers Limited, a leading manufacturer of Power Electronic and semiconductor equipment and Railway Transportation equipment, today announced its unaudited financial results for the quarter and nine months ended December 31st, 2024.

Key Financial Highlights for Q3FY25 are as follows:

Total Income grew by 24% YoY to INR 169.4 Cr in Q3FY25 from INR 136.7 Cr in Q3FY24.

EBITDA increased by 34% YoY to INR 18.1 Cr in Q3FY25 from INR 13.5 Cr in Q3FY24, reflecting improved operating efficiencies.

EBITDA margins expanded by ~90 bps YoY to 10.7% in Q3FY25 from 9.8% in Q3FY24.

PAT surged by 567% YoY to INR 10 Cr in Q3FY25 from INR 1.5 Cr in Q3FY24, driven by improved operational performance and lower financial costs

Key Financial Highlights for 9MFY25 are as follows:

Total Income grew by 29% YoY to INR 471.45 Cr in 9MFY25 from INR 366.4 Cr in 9MFY24.

EBITDA increased by 67% YoY to INR 51.54 Cr in 9MFY25 from INR 30.9 Cr in 9MFY24.

EBITDA margins improved by ~250 bps YoY to 10.9% in 9MFY25 from 8.4% in 9MFY24, supported by operating leverage.

PAT surged by 267% YoY to INR 27.12 Cr in 9MFY25 from INR 7.4 Cr in 9MFY24, driven by higher profitability and lower tax expenses.

Key Business Highlights:

The current order book stands at approximately ₹900 crore

The Board of Directors has approved the incorporation of a wholly owned subsidiary focused on developing cutting-edge products and solutions in Information Technology (IT), Artificial Intelligence (AI), Web3, and various software.

The company has secured a significant order worth approximately ₹73 crores from Indian Railways during the quarter for the supply of Loco transformers , reinforcing its strong market position in the railway segment.

During the quarter, Company secured the orders worth Rs. 229 crores.

HThe company has launched Propulsion systems for Locomotives and Roof Mounted Package Unit (RMPU) for passenger coaches, strengthening its presence in the railway sector.

Stock traded at ₹248.95 on the NSE, down 2.08%.

Customized Credit Cards with limits up to 5 lakh to be provided to Micro SME’s. This will help in spur consumption and spending, which was one of the big concerns recently.

New Tax Bill to be introduced next week

FM announces New Tax Code to be released next week. The New Bill would be simple to understand and provide tax certainty to the taxpayer. It would reduce the content and size of the current provisions to half and would simplify the law. This is a great move and would be looked at by the entire industry and taxpayers with bated breath.

The government has introduced key initiatives to enhance education and skilling, including broadband connectivity for rural government schools, digital access to Indian language books, and 50,000 Atal Tinkering Labs to promote innovation. Expanding IIT capacity and adding 10,000 seats in medical colleges will increase access to higher education. Additionally, 5 National Centers of Excellence for Skilling and a ₹500 crore Centre of Excellence in AI for education will drive skill development and innovation, creating a stronger, more skilled talent pool.

The new Income Tax Bill aims to carry forward the vision of Nyay Bharat by introducing a simplified, streamlined framework. The proposed bill will be nearly half the size of the current law, making it more direct and clear. This simplification is expected to provide greater tax certainty, minimize ambiguities, and significantly reduce litigation.

To reduce litigation in Transfer Pricing cases, a proposal has been made to shift from annual assessments to block assessments covering three years. This approach will enable more focused and comprehensive discussions, including considerations of business economics, leading to more balanced outcomes and reduced disputes. The detailed provisions and their implementation will be important to watch.

Transfer Pricing - 

Safe Harbour Provisions have been an important feature in India’s transfer pricing landscape for over a decade. The proposal to expand the scope would play a significant role in making these provisions more accessible and attractive to taxpayers, especially in terms of reducing compliance burdens, promoting ease of doing business, and fostering tax certainty.

Shares traded flat on the NSE at ₹401.60

Bharti Airtel (Airtel) on Monday said Gopal Vittal, Vice Chairman and Managing Director, has been appointed as the acting chair of the GSMA board. He was already part of the GSMA as the Deputy Chair, till now.

The development comes following the resignation of José Maria Álvares-Pallete, Chairman and CEO of Telefónica, from the Association. By virtue of the resignation, he was no longer able to continue in the position of the Chair of the GSMA.

Airtel MD Gopal Vittal elected as acting Chair of GSMA board

Gopal Vittal appointed as acting chair of GSMA board following resignation of José Maria Álvares-Pallete.

Of 4,146 stocks traded on the BSE at 3 pm on February 3, 2025, 1,066 advanced against 2,914 stocks that declined, and 166 remained unchanged. While 74 stocks hit a 52-week high, 111 hit a 52-week low. A total of 183 stocks traded in the upper circuit, and 377 in the lower circuit.

Godawari Power And Ispat has started its 0.6 MTPA Iron Ore Beneficiation Plant for BMQ, out of the proposed I.50 MTPA Plant capacity situated at Ari Dongri Mines in Kanker district of Chhattisgarh.

Shares declined 4.12% on the NSE to ₹178.02

Kamat Hotels board approves acquisition of equity shares of Chandi Hospitality Pvt Ltd. It recorded a consolidated net profit of ₹26.18 crore in quarter ended December 2024 as against ₹41.57 crore in the corresponding quarter of the previous year. Shares locked in upper circuit on the NSE at ₹273.52, 20% higher.

Analysis on GCC 

India has around 1,600 -1800 GCCs, with about 150 of them located in tier-2 cities. Ahmedabad, Mysuru, Vadodara, Nashik, Tirunelveli, Bhubaneswar, and Coimbatore have so far emerged as key hubs among the tier 2 cities. 

Considering the near term, a 30%-40% increase in demand for GCCs in tier-2 cities is expected. In the medium to long term, Tier-2 cities will drive more growth as the cities offer 10%-35% lower cost of living as compared to the nearest tier-1 location. At present, 11%-15% of India’s tech talent resides in tier-2 and tier-3 cities, and talent pool costs are 25%-30% lower than those in mature hubs, with a 50% cost savings in real estate rentals compared to mature hubs.

This is also corroborated by the fact that some of the large MNC banks are setting up their presence in these key tier 2 cities in India

An announcement in the budget to focus on the growth of GCCs in tier 2 cities will provide employment and also focus on providing relevant skills to people; this will boost investments from overseas. 

This will drive FDI growth In GCC, increase employment, and boost the economy. A much-welcome move by the finance ministry.

Poly Medicure reports consolidated profit of ₹85.22 crore in the quarter ended December 2024, as against ₹65.01 crore in the corresponding quarter of the previous year.

Stock trades at ₹2,338.10 on the NSE, down 3.94%.

Sundaram Finance reports consolidated profit of ₹451.18 crore in the quarter ended December 2024, as against ₹398.16 crore in the corresponding quarter of the previous year.

Stock traded at ₹4,376.35 on the NSE, down 2.64%.

On cleantech manufacturing: Developing and gradually moving towards cleantech manufacturing is crucial for creating a sustainable future, reducing reliance on imports and contributes to global environmental objectives. Prioritizing the production of clean energy critical products domestically, such as solar cells, electric vehicle batteries, lithium-ion batteries, and essential electronic components like controllers and motors, will provide a boost to Make in India initiatives, reduce reliance on imports and support the government’s ambitious clean energy targets.

On Revision of classification criteria for MSME

The revision in the revenue and investment limits for classification criteria of MSMEs will encourage businesses to expand and not remain constrained below a particular threshold. It will lead to better efficiencies and financial strength in the MSME space. The revision will encourage cost efficiencies, participation in larger projects, enhanced capital investment and RD focus for better product output and delivery.

Aditya Birla Capital reported a consolidated profit of ₹724.38 crore in the quarter ended December 2024, as against ₹753.73 crore in the corresponding quarter of the previous year. Stock traded 1.71% lower on the NSE at ₹173.60

“I would congratulate the Finance Minister for presenting a prudent budget that lays out a futuristic blueprint, aligning with India’s consumption driven economy and the vision of Viksit Bharat. The measures announced today are well positioned to fuel India’s consumption engine through a smart fiscal framework. Increase in the tax ceiling to INR 12 lakh is a welcome move which will certainly strengthen household purchasing power, driving demand across sectors. 

I am particularly excited about the announcement of the proposed National Institute of Food Technology in Bihar. It is a significant step towards advancing food innovation and strengthening India’s retail and food ecosystem, fostering innovation, skill development, and economic growth. 

With a smart fiscal framework and a five-pillar strategy for inclusive growth, this budget paves the way for an optimistic business environment and stronger consumer confidence benefiting the overall economy and organized sector players like us”

K.P.R. Mill reported a consolidated net profit of ₹202.25 crore in the quarter ended December 2024 as against ₹187.06 crore in the previous year same quarter.

The board has announced an interim dividend of ₹2.50 per share. (Record date: Feb 7)

Shares traded flat on the NSE at ₹927.90

“The government’s decision to allocate ₹500 crore for setting up a Centre of Excellence on AI in the education sector marks a significant step towards leveraging technology to transform learning. At MAXHUB, we welcome this forward-looking move, as it resonates with our mission to enhance educational experiences through AI-powered interactive panels. This initiative underscores the potential of technology to create immersive and future-ready classrooms, and we remain committed to driving innovation in this space to support the evolving needs of educators and students.”

About MAXHUB:

MAXHUB is a global leader in interactive and collaborative technologies, committed to transforming communication and productivity across industries.

The Union Budget 2025 reaffirms the crucial role of MSMEs as India’s second growth engine, driving innovation, employment, and global competitiveness. Our sector is at the heart of India’s economic transformation with 5.7 crore MSMEs, including over 1 crore registered enterprises, employing around 7.5 crore people and contributing 36% to manufacturing and 45% to exports. 

The government’s decision to increase the MSME investment limit by 2.5 times and the turnover

limit by 2 times is a game-changer. These reforms will enable us to scale operations, adopt advanced technology, and create more employment opportunities, particularly for the youth. Improved access to resources and global markets will strengthen our ability to compete internationally and drive India’s vision of becoming a global manufacturing powerhouse.

This budget signals a new era of growth and resilience for MSMEs. With better financial backing, enhanced ease of doing business, and a supportive policy framework, we are optimistic about the future. As an MSME, we are committed to leveraging these opportunities to innovate, expand, and contribute even more significantly to India’s economy. Together, we move forward towards a stronger, more self-reliant India.

We are optimistic about Marico due to its robust potential for double-digit sales growth in the medium term, supported by strategic price hikes, improved direct distribution, and strong performance in its Foods and Premium Personal Care segments. Furthermore, as its new business verticals expand, there is an upside potential for margins in the long term, strengthening our positive outlook. We revise MRCO to Accumulate from Buy as the stock has run-up 5% in the past month, with TP unchanged at INR 752 on 50x FY27E P/E as we roll-forward.

City Union Bank reported a promising Q3, with strong delivery across key metrics – PAT at Rs 2.86 billion – above consensus (8% beat). The highlights were: a) improving growth momentum (gross loan grew >3.5% QoQ, 14.5% YoY), b) better core profitability and c) continued asset quality improvement (negative net slippages), while credit cost looked optically higher on rising coverage (up >340bps QoQ to 58.6%).

The discussion hereon will be centred around growth sustainability and outcomes of strategic changes made by the bank. CUBK has already invested in these (setting sales culture, revamping retail team, digital transformation etc.) and thus, outcomes become critical and may drive future narratives. Last few quarters have shown encouraging trends and predictability seems to be setting in. Maintain BUY.

Weakness in INR continues to persist and we believe that INR movement along with yields in advance economies will continue to have an impact on domestic bond yields. After RBI took proactive steps in augmenting the domestic liquidity, the consensus view in the bond markets is that the MPC will reduce the policy rates in the upcoming MPC policy meeting on 7th . We believe that it’s a 50% probability - RBI may not be aggressive in cutting rates, so the total rate cuts in this cycle may be limited to 50bps. It may not make too much of a difference if they start reducing rates in Feb or the April meeting. The Union Budget has already provided stimulus in the form of lower personal income tax rates and these tax breaks can support consumption. 

The focus of RBI will continue to be on addressing the liquidity deficit of the banking system along with INR, though it seems that the new regime at RBI is more willing to let INR depreciate in light of the global scenario. Thus, we believe that RBI will start the rate cutting cycle in India from April 2025. We also expect the yield curve to steepen incrementally and would prefer the 4-8 year maturity segment from a risk-reward perspective. 

Investors can continue to allocate to Short Term/Corporate Bond Funds having portfolio duration up to 4 yrs while being tactical in their allocation to Dynamic Bond Funds. Investors should have an investment horizon of 12-18 months while investing. Money market yields of up to one year are looking attractive from a relative risk-reward scenario and investors can look to allocate in that segment also.

Trading in USD-denominated BSE Sensex derivatives at the India International Exchange (India INX) --- located in the International Financial Services Centre (IFSC) at GIFT City --- was launched on Monday. Read more

1. Shakti Pumps: PARTNERSHIPS

Company has expanded its tie-ups for DCR cell-based solar modules for FY26. Along with existing partners Mundra Solar PV (Adani) and Premier Energies, the company has secured an additional INR 1,300 Cr supply partnership with ReNew Photovoltaic Pvt Ltd, strengthening its growth momentum.

2. HBL Engineering: ORDER

HBL-Shivakriti Consortium has received an order worth INR 410 Cr for supply and Installation of way-side Kavach on Ahmedabad-Palanpur section and Ahmedabad-Samakhiyali section on Ahmedabad Division of Western Railway, to be completed within 2 years.

3. RMC Switchgears: ORDER

Company has received an order worth INR 108 Cr for development of distribution infrastructure work for 11 KV UG Cable, & RMU System in some Districts of Gujarat State.

4. Anant Raj: GOOD TO EXCELLENT RESULTS

For the quarter ending Dec-24, Sales up 36% YoY from INR 392 Cr in Dec-23 to INR 535 Cr in Dec-24. Similarly, Net Profit up 55% from INR 71 Cr to INR 110 Cr. On a QoQ basis, Sales up 4% and Net Profit up 4%.

5. Texmaco Rail: GOOD TO EXCELLENT RESULTS

For the quarter ending Dec-24, Sales up 48% YoY from INR 896 Cr in Dec-23 to INR 1326 Cr in Dec-24. Similarly, Net Profit up 2.5x from INR 30 Cr to INR 76 Cr. On a QoQ basis, Sales down 1% and Net Profit up 3%.

6. Kore Digital: EXCELLENT RESULTS

For the quarter ending Dec-24, Sales up 2.2x YoY from INR 53.95 Cr in Dec-23 to INR 119 Cr in Dec-24. Similarly, Net Profit up 3.1x from INR 4.16 Cr to INR 13 Cr. On a QoQ basis, Sales up 2.9x and Net Profit up 5.8x.

Union Budget 2025 is a liquidity focused, offering significant relief to the middle class while maintaining a strong focus on infrastructure and real estate. With tax slab rationalization, increased disposable income and less compliance burden, it puts more money in the hands of common man, thus boosting both spending appetite and encouraging investment patterns for the general public. 

The ₹11 lakh crore capital expenditure push will accelerate infrastructure development, along with the Urban Challenge Fund which reinforces urban transformation, boosting development and creation of newer micro-markets for the real estate sector. Along with this, the introduction of SWAMIH 2.0 with ₹15,000 crore allocated for 1 lakh housing units strengthens the real estate sector. 

Key reforms like TDS and TCS simplification increase in the TDS limit on rent and the allowance of two self-occupied properties instead of one will leave more money in the hands of the consumer, thereby boosting consumption. Additionally, extending the investment timeline for AIF Category I & II until 2030 supports long-term capital formation. Overall, the budget also covers the key engines of development across sectors, MSMEs, investment, and exports, ensuring sustained economic momentum.

“The decision to raise the FDI limit to 100% is a transformative step that will attract capital inflows, drive innovation, and enhance industry competitiveness. Additionally, reducing the corporate tax rate for several foreign companies from 40% to 35% is a positive move that may encourage global businesses to invest in India.

However, while increasing foreign ownership from 74% to 100% is significant, challenges in ease of doing business remain. Foreign insurers are still cautious due to a deteriorating business environment in India, which may hinder substantial investments. Large-scale economic measures for growth and development are essential, but ensuring a stable and investor-friendly ecosystem is equally critical to unlocking the sector’s full potential”.

“The Budget is expected to provide a major boost to consumption with the massive reliefs on income tax front for the lower and middle class. At a time when the economic moment was slowing down and incremental capex was beginning to generate a declining multiplier factor on the margin, as was desired by most analysts, budget has delivered this mega booster for renewed consumption boost. Along with sustained capex, economy is expected to regain the lost momentum in quick time. Continuing to adhere to the guided fiscal consolidation path even while providing tax relief is another positive feature which should help improve India’s rating upgrade prospect. RBI is also likely to take note of the same and a progressively more accommodative monetary policy is to be expected in the near term.”

Funds raised will be used to accelerate business growth and development of infrastructure

Nettlinx Limited, an internet infrastructure and services sector firm, has announced that its Board of Directors has approved a preferential issue of warrants amounting to ₹85 crore. The decision was made during the board meeting held on February 3, 2025.

As per the approved plan, the company will issue up to 1,00,00,000 (One Crore) warrants, each convertible into or exchangeable for one fully paid-up equity share of ₹10 at an issue price of ₹85 per share. The preferential allotment will be made to identified non-promoter investors in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The issuance is structured as follows:

25% of the warrant issue price will be paid upfront at the time of subscription and allotment.

The remaining 75% will be payable upon the exercise of warrants, which can be done in one or more tranches within 18 months from the date of allotment.

If the warrants are not exercised within this period, they will lapse, and the upfront amount will be forfeited by the company.

In addition to approving the preferential allotment, the Board has decided to convene an Extraordinary General Meeting (EGM) on March 5, 2025, to seek shareholder approval for the issuance. The meeting will be held through video conferencing and other audio-visual means.

It fixed February 26, 2025, as the cut-off date for determining shareholder eligibility for e-voting.

Barbeque Nation Hospitality reported its consolidated net profit at ₹5 crore in the quarter ended December 2024 as against ₹4.8 crore in the corresponding quarter previous year. 

Board has approved acquisition of 51% of equity share capital of Willow Gourmet Private Limited (WGPL), and further acquisition of 162 Equity Shares, representing 2.48% of paid-up share capital, of Red Apple Kitchen Consultancy Private Limited, a Subsidiary of the Company.

Shares traded at ₹314.15 on the NSE, down 3.16%.

• Coforge (+2.59%)
• Wipro (+2.40%)
• Persistent Systems (+1.57%)
• Infosys (+1.16%)

Suraj Ltd reported its consolidated net profit at ₹9.88 crore in the quarter ended December 2024 as against ₹9.38 crore in the corresponding quarter previous year. 

Board has declared an interim dividend of ₹1.50 per share.

Shares traded at its lower circuit on the NSE at ₹403.75, down 5%.

Taj GVK Hotels & Resorts reported its consolidated net profit at ₹45.84 crore in the quarter ended December 2024 as against ₹34.62 crore in the corresponding quarter previous year.

Shares rose 2.33% on the NSE to ₹386.

Divi’s Laboratories reported its consolidated net profit at ₹589 crore in the quarter ended December 2024 as against ₹358 crore in the corresponding quarter previous year.

Shares gained 1.11% on the NSE to ₹5,680.85

Man Infraconstruction reported its consolidated net profit at ₹83.75 crore in the quarter ended December 2024 as against ₹83.03 crore in the corresponding quarter previous year.

The board has declared Second Interim Dividend of ₹0.45 per equity share.

Shares traded at ₹193.90 on the NSE, down 4.56%.

Iris Clothings reported a net profit of ₹2.37 crore in the quarter ended December 2024 as against ₹1.98 crore in the corresponding quarter previous year.

Shares traded at ₹58.93 on the NSE.

Nila Infrastructures reported a consolidated net profit of ₹4.91 crore in the quarter ended December 2024 as against ₹3.21 crore in the corresponding quarter previous year.

Shares traded at ₹11.77 on the NSE.

Dhanuka Agritech reported a consolidated net profit of ₹55.04 crore in the quarter ended December 2024 as against ₹45.36 crore in the corresponding quarter previous year.

Shares traded flat on the NSE at ₹1,389.

Agneyastra Innovations Private Limited, a subsidiary company of Swan Energy Limited has received a Purchase Order / Letter of Acceptance from Agneyastra Technion Private Limited amounting to Rs.111 crores for Supply Installation and Commissioning of AI based Comprehensive Infra-secure items. 

Swan Energy stock traded at ₹544.60 on the NSE, down 3.50%

Aarti Industries stock traded 1.84% on the NSE at ₹451.20, posting a decline in standalone net profit to ₹47 crore in the quarter ended December 2024 from ₹124 crore in the corresponding quarter previous year.

“With the 2025 budget announcement, Finance Minister Nirmala Sitharaman has set a clear path for India’s clean tech revolution. The National Manufacturing Mission aims to accelerate domestic production of solar cells/panels, and EV storage batteries ensuring that India not only strengthens its ‘Make in India’ vision but also becomes a key player in global supply chains. The reduction of BCD on Lithium batteries is a very welcome step, as Storage goes along with increased adoption of renewable energy.

Alongside this, the focus on Industry 4.0 opens up exciting opportunities for our youth to lead the charge in innovation, creating a sustainable and energy-efficient future for generations to come. This is more than just a step toward economic growth—it’s a bold move to make India a global hub for clean energy solutions, driving job creation, reducing dependence on imports, and ultimately contributing to India’s clean energy goals”.

Post Budget Quote on Tax Reforms, Private investment and Capital Markets

“As we await the detailed provisions of the 2025 budget, the initial indications suggest a clear emphasis on boosting consumption, particularly among the middle class. The proposed tax reforms are expected to put more disposable income in the hands of consumers, potentially driving increased spending. However, on the investment front, while market expectations were high for more substantial measures to boost investment, the allocation appears more modest, with a slight reduction in the overall figures.

The budget highlights certain key sectors, including electronics, shipping, and nuclear energy, reflecting a strategic push towards these industries. While the investment proposals may not fully align with market expectations, the budget strikes a balance between consumption and investment, which seems appropriate given the current economic context.

On a broader economic scale, the fiscal deficit remains under control, and there are no significant surprises, whether positive or negative, except for the personal tax relief, which is notably more substantial. While the finer details will offer greater clarity, the budget as it stands appears to be balanced, positioning India for steady growth without introducing any major shifts in the economic trajectory.”

“We applaud the government for putting out a forward-looking budget that underlines the central role of MSMEs not only as the spine of India’s economy but also as its second growth engine. Indeed, their importance is undeniable at more than 5.7 crores, with over one crore registered businesses employing 7.5 crore people and contributing 36% to India’s manufacturing. Moreover, they drive 45% of the nation’s exports, making India a global manufacturing hub.

To enhance the growth cycle, the government increased investment and turnover limits 2.5 times and 2 times, respectively, while doubling credit guarantee cover. These measures will help MSMEs scale, innovate, and generate more employment opportunities. Emphasis on customized credit solutions and digital access to finance means playing a game-changer in bringing millions of small businesses into formal finance. More than just a policy shift, this mindset shift cements MSMEs as key drivers of exports, employment, and technological progress. India is not just building an economy but cultivating a powerhouse of resilient, future-ready enterprises.”

“Spurring urban development is one of the key priorities of the government and the Union Budget lays strong emphasis on this point. With the introduction of the Rs. 1 lakh crore Urban Challenge Fund, coupled with the continued success of the Pradhan Mantri Awas Yojana (PMAY-U), the government is reinforcing its commitment towards enhancing urban infrastructure. Additionally, the significant tax relief measures proposed for the middle class will help in augmenting the disposable income and drive consumption across sectors including housing. At Aadhar Housing Finance, we are excited to align with these progressive steps, thereby strengthening our support towards the government’s vision of creating Cities as Growth Hubs.”

”Gold prices saw correction in its prices in today’s trading session. The key factors behind this correction could be attributed to the rise in dollar index which rose by 1% to trade above 109 levels. The US has imposed a 25% tariff on all goods imported from Mexico and Canada and 10% on Chinese goods. Following this, Mexico and Canada has also retaliated with levies against US after Trump imposes tariffs on them. China will devalue its currency in line with the tariffs announced. 

The effects of these were observed in the domestic market as well where INR has hit all-time low of 87.20/$ post rise in the dollar index. 

Moving ahead, gold prices will see some corrections till the rally continues in dollar index. We expect gold prices to be in focus in 2025 which will be driven by the Trump’s stance on tariffs.”

“The 2025 Budget marks a significant milestone for India’s MSME sector, which remains crucial to our economic development. The investment and revenue thresholds for MSMEs, raised by 2.5 and 2 times respectively, will greatly enable businesses to expand, create, and enhance efficiency. This will enable MSMEs to boost their competitiveness internationally, establishing India as a more robust manufacturing center..

The first-time entrepreneurs, especially those from underrepresented communities, will foster chances for a more varied and inclusive business. The improvement of credit guarantees for MSMEs and startups is a positive development, facilitating easier access to funding and lowering obstacles to growth. Backing well-managed exporter MSMEs is another crucial move towards enhancing India’s export potential. Altogether, this budget reflects a robust dedication to the growth of MSMEs, job creation, and fulfilling India’s vision for an Atmanirbhar Bharat.”

Stocks advanced on BSE at 12 noon on Feb 3, 2025, were 1,087 against 2,707 stocks that declined, and 177 remained unchanged. Total stocks traded were 3,971. The number of stocks that recorded a 52-week high was 67, and those that hit a 52-week low was 92. A total of 162 stocks traded in the upper circuit, and 294 in the lower circuit.

The budget indeed made a fine balance between fiscal consolidation and stimulating economic growth. With a fiscal deficit target of 4.8% for FY 25, and 4.4% for FY 26, the government clearly paved the way for disciplined fiscal spending ahead of even the most aggressive fiscal deficit target by analysts. While the consensus economic growth target for FY 26 was at 10.5%, the government has estimated this to be at 10.1%, clearly walking the conservative path. Even primary deficit is now close to pre-covid levels, with the government indicating its range of debt to GDP anchors. This would provide a clearer pathway for money markets and the central bank.

The changes in personal income tax have been targeted at boosting consumption from middle class households. These changes, in which the government has estimated foregoing almost Rs. 1 trillion in tax income would largely benefit middle-income households with an annual income of between of Rs. 10-50 lakh. The government expects a big bump in corporate income tax in the last quarter of FY 25. Furthermore, personal income taxes would have increased from merely 1% in 2001 to about 4% of GDP in 2026 because of larger number of people in the tax net and substantial increase in capital gains taxes.

Capex for FY 26 would largely be spent amongst railways, roads, defense and power. Specific segments of defense and power have seen higher increase than other categories. In the backdrop of this, we expect that discretionary consumption, transmission capex linked sectors, capital markets and companies lending to small ticket consumers would be the beneficiaries of this year’s budget policy.

“The recognition of agriculture as the first engine of growth and MSMEs as the second growth engine in the Union Budget 2025 reflects the government’s strategic vision for India’s economic development. 

The comprehensive reforms announced, particularly the Prime Minister Dhan Dhanya Krishi Yojana, demonstrate a holistic approach to agricultural transformation through enhanced irrigation, credit access, and skill development across 100 agri districts, benefiting 1.7 crore farmers, while initiatives like the National Mission on High Yielding Seeds and Cotton Productivity Mission create a robust framework for sustainable agricultural growth.

As part of the StarAgri Group, we are well-positioned to support this proposed reform through our technology led integrated agricultural value-chain services such as procurement, trade facilitation, warehousing, collateral management, financing solutions, digital marketplace and technology based value added services, to farmers, traders, millers, processors and corporates. With our network of 2,189 warehouses which enables us to create and benefit from a networking effect and our technology driven integrated platform offering key services to the agricultural sector, we remain committed to redefining the agricultural landscape, providing transparency, efficiency, and security to all stakeholders involved.”

The Union Budget 2025 reaffirms the crucial role of MSMEs as India’s second growth engine, driving innovation, employment, and global competitiveness. Our sector is at the heart of India’s economic transformation, with 5.7 crore MSMEs, including over 1 crore registered enterprises, employing around 7.5 crore people and contributing 36% to manufacturing and 45% to exports.

The government’s decision to increase the MSME investment limit by 2.5 times and the turnover limit by 2 times is a game-changer. These reforms will enable us to scale operations, adopt advanced technology, and create more employment opportunities, particularly for the youth. Improved access to resources and global markets will strengthen our ability to compete internationally and drive India’s vision of becoming a global manufacturing powerhouse.

This budget signals a new era of growth and resilience for MSMEs. With better financial backing, enhanced ease of doing business, and a supportive policy framework, we are optimistic about the future. As an MSME, we are committed to leveraging these opportunities to innovate, expand, and contribute even more significantly to India’s economy. Together, we move forward towards a stronger, more self-reliant India.

India Credit Opportunities Fund II (ICOF II), the second performing private credit fund of Modulus Alternatives has been awarded CARE AIF 1 grading by CareEdge Analytics & Advisory, a subsidiary of CARE Ratings Ltd.

Quess Corp stock traded flat on the NSE at ₹617.70. Amazon on Saturday sold shares of Quess Corp for ₹46 crore through an open market transaction, while promoter billionaire Prem Watsa promoted Fairfax Capital increased its holding in the company.

The introduction of a new income tax bill aimed at simplifying corporate taxation is a forward-thinking initiative. By streamlining tax provisions and reducing compliance burdens, India is making strides toward a more business-friendly environment, which could attract increased foreign investment and stimulate economic growth.

DEV Information Technology Limited has announced securing of two cybersecurity orders from an existing USA-based enterprise client. These contracts will contribute an annual revenue of USD 250,000 (~₹2 Cr) to the company.

Shares traded at ₹152.09 on the NSE, up 1.18%.

• Jindal Stainless (-4.87%)
• APL Apollo (-4.18%)
• SAIL (-4.02%)National Aluminium (-4.01%)
• NMDC (-3.93%)

“The Union Budget 2025-26 is holistic in its approach and has been well thought out as it addresses all sections of the society - students, farmers, the economically weak and women - which is a must for India to move forward.

The Budget takes significant steps to strengthen India’s manufacturing sector, boost MSMEs, and enhance supply chains, reinforcing the Make in India vision. By supporting domestic industries and easing business regulations, it paves the way for companies like Godrej Enterprises Group to contribute more effectively to the country’s progress through innovation and engineering. 

The government’s focus on advanced technology, with funding for deep tech and 10,000 new research fellowships, will drive growth in critical sectors such as clean energy, aerospace, and defence where we continue expanding our expertise. The ₹20,000 crore investment in Small Modular Reactors under the Nuclear Energy Mission is a strong step toward energy self-sufficiency and sustainability, strengthening India’s position in green technology and reinforcing our commitment to Atmanirbharta.

The focus on warehousing infrastructure, particularly for air cargo and high-value perishable products, will improve logistics efficiency and support businesses reliant on fast, secure supply chains. This, along with continued investments in industrial infrastructure, will strengthen India’s manufacturing ecosystem. 

Additionally, the simplification of business regulations under the Jan Vishwas Bill 2 will encourage industry growth and investment, allowing companies like ours to focus on expansion rather than navigating complex compliance processes. 

On an individual level, it addresses current challenges such as personal consumption by ensuring higher disposable incomes across a large section of the populace through Income tax reliefs. It also aims to generate employment among the youth by continuing to invest in skilling which will further boost incomes and hence consumption.

With a well-balanced approach to business and people, this budget lays a strong foundation for the future. We at Godrej Enterprises Group look forward to supporting these initiatives and strengthening India’s position as a global manufacturing hub.”

Bank Nifty opened today’s session with a gap-down at 49,075 versus last week’s close of 49,507. It is currently hovering around 49,180, down 0.7 per cent.

The advances/ declines ratio is currently at 3/9, showing a bearish bias. IDFC First Bank is the top gainer, advancing 0.7 per cent, whereas Canara Bank, down 2.1 per cent, is the top loser.

Nifty PSU Bank has lost 1.2 per cent so far today and Nifty Private Bank is down 0.6 per cent. Therefore, broadly, the public sector banks are facing higher selling pressure than their private peers.

Bank Nifty prediction today – February 3, 2025: Index testing a base

Bank Nifty prediction today – February 3, 2025: Bank Nifty futures (February) has a support at 49,200; a breach of this can drag it to 48,500

“The Union Budget 2025 is a good hope for most sectors, such as toys, stationery, homeware, sports, and exports. What we are excited about is the reduction in GST on toys from 28% to 18%, which will make toys cheaper and encourage more domestic manufacturing. The government’s move to further build on the National Action Plan for Toys will help India become a global destination for toys. Clusters, skills, and a manufacturing ecosystem will ensure that India produces quality, innovative, and sustainable toys that reflect the ‘Made in India’ brand.”.

The government’s drive on ‘Make in India’ initiatives is one of the measures that would not only encourage and boost local productions but also enable the country to reduce imports dependence. We expected more focus and investment in sports and grassroots level promotion of sports in India, eyeing the upcoming trend and adaption of competitive sports in the country. It would have been huge for the growth of the sector. On the other hand, Increased capital investments in education or skill development exercises will spur educational stationery markets. We are keen to see the detailed action plan for skill development and whether it is directed to key sectors, effectively utilizing our existing large manpower and solve the need of efficient human capital in SME and MSMEs.

We also see the government’s efforts to increase the purchasing power of the middle class through tax relief as an important facilitator for consumer demand in all sectors. This is expected to redirect disposable income towards genuine quality and homegrown premium products, a favourable situation for our homeware, kitchenware and lifestyle brands. The steps to enhance exports and enhance India’s position in global supply chains might further benefit sectors that have been traditionally a little slower in exports such as toys, stationery, homeware, and sports goods. We are keen to learn more on this, but overall, this budget looks like a positive milestone for the growth and development of these sectors in India

Granules India announced resignation of Riaz Ahmed from the position of Senior Vice President & Head- Supply Chain Management with effect from the closure of business hours of February 03, 2025

The Budget has managed to meet the goals of boosting consumption though tax cuts, increasing capex through transfers to states, and maintaining the path of fiscal consolidation. We expect cyclical growth recovery, supported by both fiscal and monetary measures.

Government presents F2026 Budget: The Budget has balanced needs to support growth and continue with fiscal consolidation. As such, the Budget targets a lower fiscal deficit of 4.4% of GDP for F2026 (MSe: 4.5% of GDP) even as it reduced income taxes to support consumption, especially for low / middle income tax payers, and expanded capex growth, mainly through a boost in grants to states for capex creation. Indeed, as per the Finance Minister, direct tax changes should lead to a revenue loss of INR1000bn (0.3% of GDP), which should help support consumption. On the spending side, the mix remains tilted to capex, with effective capex (direct capex plus grants in aid of creation of capital assets) seen growing at 17.4% in F2026BE vs. 5.3% of F2025RE.

“I do not believe the Finance Minister has prioritized consumption over capital expenditure (capex). If we analyze the total capex—which includes central government spending, grants provided to state governments, and investments by central public sector enterprises—it is projected to reach ₹20 lakh crore by FY2026. For an economy with a size nearing ₹350 lakh crore, this level of capex is highly significant and supportive of growth.

Additionally, the market may have underestimated the significance of the ₹1 lakh crore tax rebate announced in the budget. This is not a one-time benefit but a recurring relief, which will enhance disposable incomes and boost consumption over the long term. It represents a well-balanced approach combining both capex and consumption to drive economic momentum.

Regarding concerns around Foreign Portfolio Investments (FPI), we remain optimistic. While January witnessed heavy FPI outflows, we expect a strong recovery in February. This is partly due to the U.S. market appearing overvalued and facing uncertainties from tariff-related policies. As a result, capital flows to emerging markets are likely to rise, and India stands to gain its fair share of these inflows.

As for the U.S. tariffs, it remains uncertain how beneficial they will ultimately be to their economy. This is an evolving situation, and markets are likely to respond with periodic knee-jerk reactions as developments unfold.”

Nifty 50, the benchmark index, opened today’s session with a gap-down at 23,319 compared to last week’s close of 23,482. The index is currently trading at 23,260, down 0.9 per cent.

The local market is taking bearish cues from the Asian equity market. Major indices like Nikkei 225 (38,470), ASX 200 (8,370), Hang Seng (20,070) and KOSPI (2,440) have lost between 0.8 and 3 per cent so far today.

Nifty Prediction today – Feb 3, 2025: Index facing selling pressure but there is support ahead

Nifty 50 opens lower, influenced by Asian markets, with potential for further decline in futures trading.

The Budget 2025 is a steadfast blueprint for the emergence of India as a self-reliant economy. The move to introduce multiple reforms under PMKY benefitting over 1.7 crore farmers is a colossal move towards focusing on boosting agricultural productivity, thereby further empowering agri-exports and at the same time, ensuring sustained affordability on food prices. Along with this, the step taken towards achieving atmanirbharta in pulses will bolster agri-output as well as reduce the dependency on other international producers of pulses, especially Tur and Masoor.

In the corporate segment, speedy approvals for company mergers will enhance the quotient of Ease of Doing Business and foster collaborations more than competition, thus promoting fair practices in Businesses. Overall, the Union Budget is consumption-oriented and focuses on strengthening the middle class, thus ensuring growth is fostered right in the hands of those who are the dominant contributors to the growth story of India.

Coming alongside the reduction in commercial LPG prices, we hope for a further easing of inflation. There is a critical need for fiscal policy to dovetail monetary policy so that some of the consumption impact on weakening rupee can hopefully be offset by the reduced taxation in middle income groups.

The transformation of India Post’s 1.5 lakh rural post offices, backed by a 2.4 lakh-strong workforce, marks a historic shift in Bharat’s logistics and economic landscape. This initiative will bridge the urban-rural divide, ensuring seamless access to financial, digital, and logistical services in tier 2 and 3 cities. With public-private partnerships and digitization at its core, eCommerce will extend beyond urban centres, empowering local businesses, artisans, and entrepreneurs.

The introduction of BharatTradeNet, alongside enhanced credit facilities and export promotion initiatives, will revolutionize how businesses handle international trade, especially the smaller businesses with simplified documentation and financial solutions, reducing compliance burden. These reforms will help strengthen India’s position in global supply chains while creating significant employment opportunities.

Government’s MSME-focused budget measures further reinforce this vision. Enhancing credit guarantees, raising MSME classification thresholds, and extending tax exemptions provide crucial financial support to small enterprises. The introduction of customized credit cards with a ₹5 lakh limit for micro-enterprises and an expanded fund of funds program with ₹91,000 crores committed to AIFs signal strong intent toward fostering entrepreneurship and job creation.

These strategic interventions will not only strengthen Bharat’s economic backbone but also drive inclusive growth, ensuring that self-help groups, women entrepreneurs, and emerging start-ups can thrive. By integrating logistics expansion with robust financial support for MSMEs, the government is laying the foundation for a more self-reliant and prosperous Bharat

Saahil Goel – MD & CEO, Shiprocket

Engineers India Limited (EIL) has recently been appointed as a “Project Management Consultant on Depository mode for Development of an Academic Institute of National Importance with a project cost of approximately ₹1200 crore. In this regard, a contract agreement was signed between the Institute and Engineers India Limited.”

Stock traded at ₹164.03 on the NSE, down 2.64%.

Stocks plummet at around 10.10 am on the NSE

• Ircon (-4.76%)
• BEML (-4.96%)
• RVNL (-6.47%)
• RAILTEL (-5.98%)
• Texmaco Rail (-4.62%)
• Titagarh (-6.32%)
• IRCTC (-2.86%)
• IRFC (-4.60%)

Shifting Gear: From Capex-Led Growth to Consumption-Driven Expansion

With urban consumption slowing down, it was essential for the government to intervene. Rising to the occasion, the Modi administration displayed a genuine commitment to strengthening middle-class savings, which is expected to drive consumption. The expansion of the nil tax slab for salaried individuals, along with revisions in the tax structure and TDS/TCS relaxations, will increase disposable income for households. Additionally, the Budget has prioritized growth in domestic manufacturing, MSMEs, and agriculture. However, concerns remain over government capital expenditure, as FY26 projections indicate a slowdown compared to the robust double-digit growth seen in earlier years (before FY25). Time will tell whether these consumption measures will materially help lift private capex.

The offshore yuan plunged to around 7.36 per dollar, hitting its record low. The Canadian dollar fell past 1.47 per US dollar, reaching its weakest level since April 2003.

Monday, 3 February, 2025 (Today)

Derivative Segment

• Aditya Birla Cap Ltd.

• Tube Investments Ltd.

• Divi’s Lab Ltd.

• HFCL Ltd.

• Power Grid Ltd.

• Tata Chem Ltd.

Cash Segment

• Castrol Ltd.

• Gland Pharma Ltd.

• Garden Reach Ltd.

• Alembic Pharma Ltd.

• K.P.R. Mill Ltd.

• KEC International Ltd.

• General Insurance

• NLC India Ltd.

• Poly Medicure Ltd.

• Religare Ltd

Tuesday, 4 February, 2025

Derivative Segment

• Asian Paints Ltd.

• Max Financial Ltd.

• Titan Company Ltd.

• Tata Power Ltd.

• Godrej Properties Ltd.

• Metropolis Health Ltd.

Cash Segment

• BASF India Ltd.

• Thermax Ltd.

• Global Health Ltd.

• Happiest Minds Ltd.

• Mishra Dhatu Ltd.

• JB Chemicals Ltd.

• Kajaria Ceramics Ltd.

• Lemon Tree Ltd.

• Zydus Wellness Ltd.

• Triveni Engineering LTD

• Birla Corp Ltd.

• Eris Lifesciences Ltd.

• Fine Organic Ltd.

• Torrent Power Ltd.

• Whirlpool Ltd.

Wednesday, 5 February, 2025

Derivative Segment

• Cummins India Ltd.

• Page Industries Ltd.

• Info Edge Ltd.

• Zydus Lifesciences Ltd.

• Abbott India Ltd.

• Gujarat Gas Ltd.

Cash Segment

• Kansai Nerolac Ltd.

• Timken India Ltd.

• CCL Products Ltd.

• Data Patterns Ltd.

• Redington Ltd.

• Solar Ind Ltd.

• Welspun Corp Ltd.

Thursday, 6 February, 2025

Derivative Segment

• BSE Ltd.

• Aurobindo Pharma Ltd.

• SBI

• Trent Ltd.

• Hero MotoCorp Ltd.

• Ramco Cements Ltd.

• Bharti Airtel Ltd.

• Britannia Ind Ltd.

• ITC Ltd.

• PI Industries Ltd.

• Apollo Tyres Ltd.

• Chambal Fertilisers Ltd.

• MRF Ltd.

• NCC Ltd.

• NMDC Ltd.

• PVR Inox Ltd.

• REC Ltd.

Cash Segment

• Motherson Sumi Wiring Ltd.

• Aadhar Housing Ltd.

• Bharat Dynamics Ltd.

• Bharti Hexacom Ltd.

• Bikaji Foods Ltd.

• ZF Commercial Ltd.

• BEML Ltd.

• Cochin Shipyard Ltd.

• Finolex Industries Ltd.

• JK Lakshmi Cement Ltd.

• KIMS Ltd

• Minda Corporation Ltd.

• NMDC Steel Ltd.

• Prism Johnson Ltd.

• Sapphire Foods Ltd.

• Sobha Ltd.

• Sonata Software Ltd.

• UNO Minda Ltd.

Friday, 7 February, 2025

Derivative Segment

• LIC

• Alkem Lab Ltd.

• Delhivery Ltd.

• M&M Ltd.

• Oil India Ltd.

Cash Segment

• Akzo Nobel Ltd.

• Chola Fin Hold Ltd.

• Latent View Ltd.

• Honeywell Auto Ltd.

• 3M India Ltd.

• Action Construction Ltd.

• Firstsource Solutions Ltd.

• AIA Engineering Ltd.

• Archean Chemical Ltd.

• Balrampur Chini Ltd.

• Caplin Point Ltd.

• Century Ply Ltd.

• Chemplast Sanmar Ltd.

• Fortis Health Ltd.

• Gujarat State Petro Ltd.

• Linde India Ltd.

• Mazagon Dock Ltd.

• NHPC Ltd.

• Shipping Corp Ltd

• Edelweiss Ltd

Saturday, 8 February, 2025

Cash Segment

• Amara Raja Ener & Mob Ltd.

• Shaily Engineering LTD

• Affle Ltd.

Monday, 10 February, 2025

Derivative Segment

• Bata Ltd.

• Apollo Hospitals Ltd.

• Escorts Kubota Ltd.

• FSN E-Commerce Ltd.

• Grasim Ind Ltd.

• National Aluminium Ltd.

Cash Segment

• CRISIL Ltd.

• Esab India Ltd.

• Gillette India Ltd.

• Glaxosmithkline Ltd.

• HBL Engineering Ltd.

• Elgi Equipments Ltd.

• Patanjali Foods Ltd.

• PNC Infratech Ltd.

• Sun Pharma Advanced Ltd.

• Varroc Engineering Ltd.

Tuesday, 11 February, 2025

Derivative Segment

• Berger Paints India Ltd.

• IRCTC Ltd.

• Lupin Ltd.

Cash Segment

• P&G H&H Ltd.

• HEG Ltd.

• Bayer CropScience Ltd.

• Astrazeneca Pharma Ltd.

• RHI Magnesita Ltd.

• Cera Sanitaryware Ltd.

• E.I.D. - Parry Ltd.

• Kirloskar Oil Ltd.

• NBCC (India) Ltd.

• Tata Investment Ltd.

• Moil Ltd

Wednesday, 12 February, 2025

Derivative Segment

• Muthoot Finance Ltd.

• Ashok Leyland Ltd.

• Bharat Forge Ltd.

• Hindustan Aero Ltd.

• Jubilant FoodWorks Ltd.

Cash Segment

• Endurance Tech Ltd.

• P&G Health Ltd.

• Suven Phar Ltd.

• IFCI Ltd.

• Finolex Cables Ltd.

• Honasa Consumer Ltd.

• Natco Pharma Ltd.

• Ratnamani Metals Ltd.

Thursday, 13 February, 2025

Derivative Segment

• Hindalco Ltd.

• United Breweries Ltd.

• Deepak Nitrite Ltd.

• Ipca Lab Ltd.

• Manappuram Finance Ltd.

Cash Segment

• Concord Biotech Ltd.

• Grindwell Norton Ltd.

• KNR Constructions Ltd.

• MMTC Ltd.

Monday, 17 February, 2025

Derivative Segment

• ABB India Ltd.

• National Aluminium (-5.28%)
• Vedanta (-5.11%)
• NMDC (-4.85%)
• SAIL (-4.74%)
• Hindalco (-3.89%)

SBI Mutual Fund, India’s largest fund house announces the launch of SBI Nifty IT Index Fund, open-ended scheme replicating/ tracking Nifty IT Index. The New Fund Offer (NFO) period for the scheme is February 4 – 17, 2025. 

The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved. 

The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty IT Index and up to 5% in Government securities (like G-Secs, SDLs, treasury bills and any other like instruments as specified by the RBI from time to time), including triparty repo and units of liquid mutual fund. The minimum application amount required is of Rs. 5,000 and in multiples of Re. 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP (Systematic Investment Plan). 

The fund manager for SBI Nifty IT Index Fund is Mr. Harsh Sethi who has been associated with the fund house since May 2007 and currently manages passive offerings such as SBI Nifty IT ETF, SBI Nifty Consumption ETF, SBI Nifty Private Bank ETF, SBI Nifty Midcap 150 Index Fund, SBI Nifty Small Cap 250 Index Fund, SBI Nifty India Consumption Index Fund and SBI Nifty Bank Index Fund. 

About SBI Funds Management Limited (SBIFM), the asset management company of SBI Mutual Fund: 

SBIFM is a Joint Venture between State Bank of India, India’s largest bank, and Amundi, Europe’s largest asset manager and one of the world’s leading asset management companies. SBIFM is acting as the asset management company of SBI Mutual Fund and offers Discretionary, Non-Discretionary and Advisory Portfolio Management Services in addition to Alternative Investment Fund offerings to various High Net worth Individuals, Corporates, and Institutional Investors amongst others. SBIFM was the first asset management company in the mutual fund industry to sign the CFA Institute of Asset Manager Code of Conduct and is also the signatory of the United Nations Principles for Responsible Investment (UN PRI). 

SBI Mutual Fund is the leading mutual fund house in the country, managing an AUM of over Rs. 11 lakh crore.

Texmaco Rail & Engineering stock declined 4.51% on the NSE to ₹169.97 despite reporting over two-fold jump in its consolidated profit after tax to ₹76 crore in December quarter, as against ₹30 crore PAT (profit after tax) in the year ago quarter.

L&T Technology Services has joined the Arizona Technology Council (AZTC) to expand its global reach in cutting-edge smart city and digital solutions.

Stock declined 1.27% on the NSE to ₹5,350.

Paytm Cloud Technologies Limited, Paytm’s wholly-owned subsidiary, has approved an investment of USD 1 million (equivalent to ₹8.70 crore) in Seven Technology LLC incorporated in Delaware for acquisition of 25% stake.

Paytm stock traded flat on the NSE at ₹740.55

Macpower CNC Machines informed that a fire incident occurred on Feb 2 due to short circuit in the Unit-2 godown premises located at Metoda GIDC Nr.

Shares traded at ₹1,218.95 on the NSE, down 1.26%.

* Caixin China General Manufacturing PMI was 50.1 in January 2025, below market consensus and December’s 50.5.

* Fourth consecutive month of rise in industrial activity, but weakest due to falling international orders.

* Employment decline highest since February 2024, leading to fourth monthly increase in backlogged work.

* Output increased for 15th consecutive month, with growth quickening with new orders trend.

* Buying levels increased significantly due to faster delivery times.

* Cost side, input prices were stable, supplier reductions offset increased raw material costs.

* Selling prices fell at highest pace since July 2023.

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9:00 AM Unicommerce Eso

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9:30 AM Aster DM Health

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11:00 AM Texmaco Rail

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11:00 AM Aptus Value Housing

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12:00 PM Credo Brand Mar

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3:30 PM ONGC

*Analyst Meet:*Ball Room Hotel Taj Lands End Bandra West, Mumbai, Maharashtra 400050

4:00 PM Speciality Rest

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4:30 PM Poly Medicure

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4:30 PM AB Capital

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4:30 PM KRN Heat Exchan

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Investec on UPL: Upgrade to Buy on company, raise target price at Rs 700/Sh (Positive) 

Jefferies on ITC: Maintain Buy on Company, target price at Rs 550/Sh (Positive) 

MS on ITC: Maintain Overweight on Company, target price at Rs 554/Sh (Positive) 

Nomura on Fivestar FIn: Maintain Buy on Company, target price at Rs 870/Sh (Positive) 

Kotak Institutional on Market Strategy: FY26 Budget positive for bonds & consumption (Positive) 

Goldman Sachs on Auto: Budget favors 2W & affordable cars, EMI savings to benefit TVS, Hero, Bajaj, Maruti, and Ashok Leyland (Positive) 

GS on Union Budget: 2-w stocks major beneficiaries, TVS top pick followed by Hero, Eicher and Bajaj Auto (Positive) 

MOSL on Union Budget: Tax rates changes are positive, Maruti and Indigo preferred picks. (Positive) 

Investec on India Consumer Goods: Urban demand to benefit, Buy GCPL, Marico, ITC, Nykaa, Titan, Sapphire Foods set to gain (Positive) 

Jefferies on Auto Sales: January auto wholesales up 9% YoY for tractors, modest 3-4% growth for 2W, PV, and trucks, TVS Motors and Eicher Motors remain top buys. (Positive) 

HSBC on Union Budget: Govt balances fiscal consolidation with growth, tax revenues may disappoint slightly but overall assumptions reasonable. (Neutral) 

CLSA on Market Strategy: Consumption focus returns, tax cuts could save ₹1.1L/year, large PSU divestments add pressure on share sales. (Neutral) 

CLSA on Telecom: FY26 telecom receipts expected to fall 33%, lower BSNL spectrum-related non-cash receipts impact sector. (Neutral) 

JP Morgan on Indusind Bank: Maintain Neutral on Bank, cut target price at Rs 1100/Sh (Neutral) 

JP Morgan on ONGC: Maintain Neutral on Company, target price at Rs 293/Sh (Neutral) 

Jefferies on GMR Airports: Maintain Equal weight on Company, cut target price at Rs 92/Sh (Neutral) 

JP Morgan on Union Budget: Budget prioritizes conservatism, tax cuts to boost urban consumption but pressure expenditure, total cost at 0.3% of GDP. (Neutral) 

BOFA on Union Budget: Fiscal policy follows a “do no harm” approach, stable revenue assumptions but tax cuts may require reduced exemptions. (Neutral) 

Investec on Building Materials: No direct demand push, execution key for FY26, prefer Astral, Kajaria, Century Ply, Greenply, Ambuja, Ultratech. (Neutral) 

Goldman Sachs on Insurance: Budget impact small positive, ULIP taxation clarified, high new tax regime adoption, demand trends healthy. (Neutral) 

Bernstein on Insurance: ULIP taxation concerns overdone, SBI Life less impacted, Max Financial reverse merger may benefit. (Neutral) 

CLSA on India Property: Budget impact marginally positive, tax benefits for second homes, SWAMIH-2 to support stalled housing projects. (Neutral) 

Incred on Market Strategy: Cautious stance, favor large caps like Britannia, Hero MotoCorp, and Maruti Suzuki, maintain Nifty target at 23,260. (Neutral) 

Bernstein on Market Strategy: Remain underweight on industrials, shift discretionary (ex-auto) to Equal Weight, modest Overweight on durables. (Neutral) 

JP Morgan on Infra: FY26 infra capex growth underwhelming, defense capex picks up, muted outlook for L&T. (Neutral) 

Capital Economics on Tariffs: Tariffs could push Canada and Mexico into recession, US inflation may rise above 3%, interest rate cuts unlikely (Negative) 

Nomura on Tariffs: No deal likely before Feb 4, tit-for-tat escalation expected, rising tariff risks for Europe, markets brace for slower growth & higher inflation. (Negative) 

MOSL on Capital Goods: Cap Goods will face challenges in growth, downgrade Hitachi & Thermax to sell (Negative) 

Jefferies on OMCs: Govt’s budgeted LPG subsidy implies that OMCs will bear 69% of FY25 under-recoveries, budgeted LPG subsidy move suggests govt has capped marketing profitability of OMCs (Negative)

United States

Imposed 10% tariffs on Canadian oil and 25% on Mexican energy imports.

Triggered retaliatory tariffs from Canada and Mexico and a WTO challenge from China.

Strengthening US dollar led to pressure on global currencies and commodities.

Canada

Accounts for a quarter of US crude imports (with Mexico).

Responded with 25% tariffs on $155 billion of US goods.

Canadian dollar hit a multi-year low due to trade war fears.

Mexico

Energy exports to the US now face a 25% tariff.

Pledged retaliatory tariffs against the US.

Mexican peso dropped to multi-year lows following US tariffs.

China

Export orders fell for the second consecutive month.

Factories cut selling prices aggressively due to competition.

Domestic demand improved, but real estate prices and sales declined.

Announced plans to challenge US tariffs at the WTO.

Yuan hit a record low in offshore trading.

Japan

Factory activity declined at the fastest rate in 10 months.

Business confidence hit a two-year low amid sluggish demand.

BOJ policymakers debated rate hikes due to inflation risks and yen weakness.

Australia

Retail sales fell by 0.1% in December, but beat forecasts.

Sales volumes rose 1% in Q4, contributing to GDP growth.

Markets still expect an interest rate cut soon.

Global Markets

Cryptocurrencies slid as trade war fears drove investors away from risky assets.

Gold prices fell as a stronger US dollar pressured commodities.

OPEC+ unlikely to change output plans despite trade tensions.

“The 2025 Budget announced by the Government of India is a bold and visionary step towards a more prosperous and inclusive Bharat. The focus on infrastructure development, domestic consumption, and production, as well as digital transformation, is commendable. Its emphasis on the manufacturing sector, through measures designed to further enhance ease of doing business, will benefit multiple stakeholders.

The enhanced National Manufacturing Mission will not only boost domestic production but also position India as a global manufacturing hub. This is also a significant step towards Atmanirbhar Bharat, helping us create numerous job opportunities and setting the stage for a vibrant and competitive manufacturing sector in India.

The budget also offers significant tax relief through rebates, which is anticipated to boost domestic consumption and invigorate the retail sector. This increased disposable income should allow consumers to spend more and improve their quality of life.

Another key decision by the Govt. is the increased focus on Public-Private Partnerships in infrastructure development as well as the Special Window for Affordable and Mid-Income Housing (SWAMIH) and the decision to develop the top 50 tourist destinations, aiming to bridge the gap between rural and urban, providing improved facilities and connectivity to all citizens. I am confident that this budget will pave the way for a brighter future for India.”

Key Highlights:

The main announcement was that no Income Tax payable up to ₹12 Lakh under new regime. Tax benefits will be in the range of 80,000 –1,10,000.

Fiscal deficit for 2025-26 is estimated to be 4.4 percent of GDP (4.8% for FY 2024-25)

Budget allocation for FY2025-26 it highlights earmarking of Rs.11.21 lakh crore(3.1 percent of GDP) towards capital expenditure. For FY25, revised estimate is of 10.18 lakh crore.

The government has announced Rs14.82 lakh crore gross market borrowing for FY26, as compared to Rs14.01 lakh crore for FY25. However, net market borrowing to finance the fiscal deficit is lower at Rs11.54 lakh crore for FY26, from Rs11.63 lakh crore in FY25.

The government has kept its financial year 2026 disinvestment target at ₹47,000 crore, according to data from the Budget documents. For financial year 2025, the revised estimates stands at ₹33,000 crore, compared to the budgeted estimate of ₹50,000 crore.

“The Union Budget 2025 has laid out a roadmap for economic resilience, focusing on tax relief, infrastructure expansion, and sectoral reforms. With significant income tax cuts, the biggest being the no income tax upto Rs 12 lakh under the new tax regime, higher exemptions, and fresh incentives for startups and MSMEs, the government has aimed to boost both middle-class incomes and drive long-term sustainable growth.

The fiscal deficit set at 4.4% is widely as per market expectations signals continued commitment to fiscal consolidation. Moreover, capital expenditure target has been increased by 10.08% to Rs 11.21 lakh crore for FY26 with the aim to boost the faltering demand and consumption in the country. Initiatives under ‘Make in India’ and allocations towards projects that are expected to aid infrastructure development are directed towards economic growth and development.

From a sectoral perspective, the budget appears to benefit consumption-driven industries like FMCG, consumer durables, automotive, and other consumer sectors. Tax relief announced is expected to further stimulate the economy. Overall, there is optimism about the market’s medium to long-term outlook, driven by the budget’s pro-growth and investment-friendly measures.”

‘’The budget has laid the framework for long-term economic growth while fuelling all the key drivers – consumption, manufacturing, infrastructure, innovation, employment, private investment etc. At the same time, the government has demonstrated fiscal prudence by staying on the fiscal glide path. The personal tax reform will offer strong impetus to urban consumption, thus driving demand. The continued emphasis on infrastructure development will further enhance efficiency in the logistics operations – be it storage, transport and distribution. The focus on ease of doing business and regulatory reforms will further improve the investment climate and strengthen private investment in various sectors. The proposal to transform India Post into a large public logistics organization will boost the logistics capacity nationwide. The budget also reflects the government’s vision to turbocharge the development with new-age technology interventions through AI and deep tech innovation. All in all, the budget will act as a force-multiplier and will further strengthen macroeconomic stability while building resilience.”

The budget has proposed some effective measures to build self-reliance in defence manufacturing. Earmarking a sizable part of the modernisation outlay for procurement through domestic sources and domestic private industries is a move in the right direction to boost bolster capacity and capability. It will also pave the way for a stronger private sector’s participation in the country’s defence ecosystem. The focus on AI and deep tech innovation also augurs well for the defence and precision engineering domain as it will lead to the development of a future-ready talent pipeline. In a way, new-age tech interventions will also bolster defence manufacturing capabilities. From a holistic perspective, the budget has set the progress path to drive defence exports to attain the defence exports target of ₹50,000 crore by 2029.

“With over 30+ sections governing resident payments, TDS rates ranged from 0.1% to 30%. Simplifying this complex structure has been a key demand, and the government has now initiated steps to rationalize TDS provisions. In terms of dividends, providing administrative relief, no tax will be deducted on dividends paid to individual shareholders if the total amount does not exceed INR10,000.”

A new Fund of Funds (FoF) for start ups with an expanded scope and ₹10,000 crore allocation is set to be established. This is expected to boost the growing AIF industry, attract greater domestic institutional investments, and enhance support for startup-focused Funds of Funds”

“A very solid budget that focusses on accelerating growth, by increasing consumption, providing a boost to employment and the MSME sector, while remaining fiscally prudent. The lower income tax outgo will give a fillip to consumption and incentives to labour intensive sectors will boost employment. A slew of measures to the MSME sector - the backbone of employment and growth – including easier credit access and guarantees, and support to women led enterprises is encouraging. The infrastructure buildout has been widened to include connectivity, new age sectors and skilling/education which have multiyear multiplier effects and aid employment. These measures will surely put India on course to becoming a USD4tn economy by March 2026.”

“Budget announcements for FY26 have managed to hit the right balance between the need for a consumption stimulus and structural support towards a sustainable growth path for the economy.

Proposed income tax reliefs for the middle-class population should bring in plenty of cheer and boost consumption. At the same time, CAPEX thrust has been maintained in the budget with targeted support to critical sectors. The economy thus gets both consumption and CAPEX push to strengthen growth momentum in the year.

Reforms in the identified key engines of development- Agriculture, Investment, MSMEs, and Exports, will help accelerate transformation of these sectors as key growth drivers. Focus on Agriculture and Urban transformation will significantly help in unleashing the potential of the economy in the medium term. Announcements around ‘Grameen credit score framework’ and commitment to revamp KYC norms are big positives for the lending business. Focus sectors identified for MSME support are mostly labour-intensive sectors and besides driving manufacturing push, it will also help augment employment generation, skill development, credit availability etc.

Most importantly, the underlying intent of deregulation and trust is very positive for the private sector. Overall, a well-balanced budget that sets the path for broad-based and sustainable domestic growth despite global headwinds.”

Budget provides a big boost to NBFCs, with a special focus on MSMEs

“This marks a significant step towards strengthening India’s economic backbone, focusing on MSMEs and the middle class while maintaining fiscal prudence. The revision of MSME classification is going to be a major game changer for the manufacturing sector. With over 1 crore MSMEs already driving 45% of India’s exports, the enhanced investment and turnover limits will empower these businesses to scale up operations and embrace technological innovation.

Rajendra Kumar Setia, MD & CEO, SK Finance Limited on Union Budget 2025

Enhancement of the credit guarantee cover for MSMEs to Rs 10 crore; term loans for exporter MSMEs to Rs 20 crore and start-ups to Rs 20 crore, will provide a big fillip to the industry. These measures will enable NBFCs in scaling up their operations, and will drive inclusive growth. The announcement of customized credit cards with a Rs. 5 lakh limit for micro-enterprises will increase liquidity and lead to establishment of new entrepreneurs. All in all, Budget 2025 will have a positive impact on India’s economic growth trajectory, with MSMEs driving growth.”

Anant Raj: Net profit at Rs 110 cr, up 55%. Revenue at Rs 534 cr vs Rs 392 cr (YoY) (Positive) 

Moil: Company’s production of 1.6 lakh tonnes of Manganese Ore Sales up 17% YoY at 1.57 lakh tonnes. (Positive) 

Lemon Tree: Company signed a Concession Agreement with Meghalaya Tourism Development Corporation for the redevelopment, operation, and maintenance of Orchid Hotel in Shillong. (Positive) 

Kirloskar Ferrous Industries: Company’s 70 MW DC solar plant is fully operational. (Positive) 

Easy Trip Planners: Company incorporated a wholly-owned subsidiary, Easy Trip Planners Do Brasil Ltda., in Brazil on January 30, 2025. (Positive) 

International Conveyors: Company announced the acquisition of Gulshan Polyols Limited. (Positive) 

Eicher Motors: Total sales for Jan up 20% YoY; YTD sales up 7% YoY (Positive) 

Globus Spirits: Rajasthan excise policy, net selling value per unit across brands to increase by 4.35% from 1st April 2025 (Positive) 

Lupin: Receives zero Form 483 observation for USA plant. (Positive) 

Neogen: Net profit of ₹10 crore from ₹1 crore, Revenue up 22.5% to ₹201.4 crore. (Positive) 

Aarti Industries: Net profit at Rs. 46 cr vs Rs 124 cr, Revenue at Rs. 1840 cr vs Rs 1732 cr (YoY) (Neutral) 

GR Infra: Net profit up 7.8% at ₹261.7 cr vs ₹242.7 cr, Revenue down 20.6% at ₹1,694.5 cr vs ₹2,134 cr (YoY) (Neutral) 

Hero Motocorp: Total sales up 2% at 4.42 lk units vs 4.33 lk units (YoY) (Neutral) 

Happiest Minds: Company acquires Gavs’ Middle East business in $1.7 million deal (Neutral) 

Coal India: Coal Production down 0.8% at 77.8 mt vs 78.4 mt (YoY) (Neutral) 

Maiden Forgings: Company announced it received a crisil BBB/Stable rating for its bank facilities totaling Rs. 42.5Cr. (Neutral) 

Indian Bank: Bank to Hike Lending Rates by 5 bps in Most Tenures, Effective February 3, 2025 (Neutral) 

Nuvoco Vistas: Company’s subsidiary received a demand order from the Joint Commissioner, Central Goods & Services Tax, West Bengal. The order alleges inadmissible input tax credit of Rs. 4.74 Cr. (Neutral) 

Auro Impex: Company announced the resignation of Mr. Raghav Jhunjhunwala, Company Secretary and Compliance Officer. (Neutral) 

TVS Holdings: Company acquired 80.74% stake in Home Credit India Fiannce Private Limited. (Neutral) 

Max Healthcare: Company announced an investment of approximately Rs. 50 Crore in its wholly-owned subsidiary, Jaypee Healthcare Limited. (Neutral) 

Mishtann Foods: Company announced the resignation of its Company Secretary & Compliance Officer. (Neutral) 

Mazagon Dock: Company announced changes in senior management effective February 1, 2025. Cdr. D K Jain retired after superannuation, while Shri. A Vinod received an internal promotion to ED (Technical) (Neutral) 

V-Guard: Company’s subsidiary received three demand notices totaling approximately Rs. 4.52 Crore from West Bengal’s Commercial Taxes department. (Neutral) 

GICRE: Company received a tax demand of Rs. 138.46 Cr from the Additional Commissioner CGST & Central Excise, Mumbai South Commissionerate. (Negative) 

KEI Industry: Company received a GST demand order for Rs. 59.03 Cr in tax and an equal amount in penalties and interest from the additional commissioner, central goods and services tax Delhi East. (Negative) 

V.S.T. Tillers Tractors: Company reported January 2025 sales 3416 total power tillers and tractors, compared to 4146 in January 2024. (Negative)

“The Union Budget reaffirms India as an innovation and knowledge centric economy with a slew of reforms across agriculture, MSME, export centricity, education and healthcare and balancing skills and AI. The rationalisation of personal tax reforms could unleash a potential consumption boom of at least Rs 3.3 trillion spend over baseline. The fiscal numbers are conservative. The budget has several bold initiatives for Agri sector aimed at boosting farmers income through crop diversification, participation in Agri value chains and focus on allied activities. The MSME sector will benefit from expanded credit availability through credit guarantees, empowering women entrepreneurs and credit cards for micro enterprises. The enhancement of TCS limit on remittances, the enhancement of TDS limits for senior citizens will significantly simplify ease of doing business. Overall, the Budget is a significant step towards making India a global hub for innovation and advanced manufacturing.”

With a focus on fiscal consolidation, the government has set a fiscal deficit target at 4.4% for FY26, compared to 4.8% in FY25, which was revised downward from the original target of 4.9%. This downward trend in the fiscal deficit is a positive indication of the government’s commitment to fiscal consolidation. It suggests that central governments borrowings in FY26 will remain relatively stable, which could push bond yields lower. This creates favorable conditions for the private sector to borrow more at a reduced cost of capital, particularly at a time when private sector capex has been sluggish for various reasons. By strengthening fiscal stability, the government may also aim to improve its sovereign credit rating, potentially in FY26.

Removing regulatory cholesterol

The government plans to set up a high-level committee to drive regulatory reforms across all non-financial sectors. By reducing regulations and eliminating redundant compliance requirements, the government aims to stimulate private investment. The private sector, particularly SMEs and MSMEs, continues to face significant regulatory burdens. This is welcome initiate from the government as deregulation will help lower transaction costs, enhance competitiveness, and improve the productivity of the private sector.

Capex falls short of expectations

The government has revised its capital expenditure target for FY25 down by 8% YoY. The revised target FY25 is Rs.10.18 lakh cr compared to original budgeted Rs.11.11 lakh cr. On the other hand, capex outlay for FY26 has been raised to Rs.11.2 lakh cr, which is higher than the previous year but still below industry expectations. It’s important to note that the central government’s capex spending has been a key driver of overall investment growth in recent years, despite weak private sector investments. While the FY26 capex figure may seem disappointing compared to FY25, it is still substantial, provided the government fully utilizes the allocated funds. In the first eight months of FY25, the government was unable to spend even half of the Rs. 11.11 lakh crore target. Nevertheless, the focus on sectors like construction, infrastructure, railways, and defense will continue in FY26, benefiting companies operating in these areas.

Consumption Bonanza – Delivering Growing Aspirations of Masses!

Neeraj Chadawar, Axis Securities

The Union Budget 2025-26 was presented today by the finance minister Nirmala Sitharaman. The expectations from the Budget were reasonably high as the Indian economy was facing signs of moderation

in economic growth during H1FY25 due to a reduction in government spending, credit tightening in unsecured lending, consumption slowdown (especially in the urban areas), extended monsoon, and

inflation. The biggest expectation from the finance minister was to spur economic consumption. We believe the finance minister has laid the foundation for consumption growth in the economy by giving

landmark tax rebates for individuals with income up to Rs 12 Lc, thereby providing a significant boost to the masses. The fiscal deficit for FY25 is now revised to 4.8%, 10bps lower than the projected number

and is set at 4.4% for FY26. Overall, we believe the Union Budget has played a balancing act to maintain fiscal discipline and support a consumption-led demand in the economy.

The past decade was defined by development-focused schemes, with the construction of roads, bridges, metro systems, and other infrastructure projects serving as benchmarks for the ruling party’s success.

However, the capacity creation phase has had its own set of challenges that resulted in lower allocation to social schemes. Now, with this budget further strengthening, the focus is given towards rural,

masses, and the middle class for spurring consumption, indicating a shift in the economic regime. Consumption-led growth will have a cascading effect on the economy and provide a much-needed boost to

the private capex, which has been sluggish for several years. This is expected to positively impact consumption-related stocks, while some moderation is anticipated in capex-related stocks.

Our Key Takeaways from the Union Budget are as follows:

Consumption Booster for the Middle Class: The Finance Minister has provided a consumption boost to the middle class by implementing a transformational reform in the tax structure, offering rebates for

individuals with incomes up to Rs 12 Lc under the new regime. We believe that individuals in the Rs 12 Lc salary bracket will save approximately Rs 83,000 per year, translating to savings of around Rs 7,000

per month. This is expected to benefit the middle class. Urban consumption, which has been sluggish for multiple quarters, is likely to see a revival in the coming quarters. Sectors such as Retail, FMCG,

QSR, Automobiles, and Travel & Tourism are expected to be the key beneficiaries.

Continued Thrust on CAPEX: The CAPEX spending in FY25 was sluggish due to the election year. The revised estimate for FY25 CAPEX spending was Rs 10.18 Lc Cr vs the Budget estimates of Rs 11.1

Lc Cr. For FY26, the government has set the CAPEX target of Rs 11.2 Lc Cr, a growth of 10% over the revised estimates. We believe these CAPEX estimates are reasonable and align with the nominal GDP

growth rate of 10.1% for FY26. Its unwavering focus remains on Roads, Power, Urban Development, and Railways, sectors that are expected to drive significant long-term economic multipliers.

Fiscal Math Reasonable: Nominal GDP growth for FY26 is projected at Rs 356.97 Lc Cr, reflecting a robust increase of 10.1% from the revised FY25 figure of 324.11 Lc Cr. The government has set the

fiscal deficit target at 4.4% for FY26, demonstrating fiscal prudence in the coming financial year, even with the landmark tax rebate for individuals with incomes up to Rs 12 Lc.

Significant Push for Rural and Skill Development: The budget’s emphasis on Rural Development and Agriculture & Allied Activities, with a total outlay of Rs 2.66 Lc Cr and Rs 1.71 Lc Cr, respectively, is

likely to benefit sectors such as Auto, FMCG, Fertilizer, and other rural-oriented industries moving forward. Additionally, the budget will indirectly support the rural sector through infrastructure improvements,

tourism, fisheries, and skill development initiatives.

The Union Budget for 2025-26 faced a clear challenge: to support economic growth while maintaining fiscal prudence. Given the global uncertainties, particularly due to Trump’s trade policies, the focus had to be on strengthening domestic demand.

The Budget addressed the calls for increased consumption by opting for the most effective tool to leave more money in the hands of the average Indian: - income tax adjustments.

The Budget also emphasized reviving consumption demand. Several proposals were made towards enhancing agriculture and allied activities for the rural population to increase their earnings.

The government is implementing several programs, including the Dhan Dhanya Krishi Yojana, the National Mission for Edible Oil Seeds, and initiatives to boost cotton productivity, all aimed at increasing agricultural production and farmers’ incomes.

Another takeaway is that the post-Covid of government capital expenditure led growth has ended. The government capex for fiscal year 2025-26 is projected at Rs 11.2 lakh crore, compared to the revised estimate of Rs 10.19 lakh crore for 2023-24. The budget estimate for this fiscal year was Rs 11.11 lakh crore, indicating that government capex remains essentially flat.

India is making a big push for nuclear energy, with plans to generate 100 GW by 2047. While that goal is still a ways off, the country is already working on developing smaller nuclear reactors. Additionally, regardless of the views of the Trump administration, this initiative is part of a larger effort to transition to cleaner energy sources, which also includes investments in solar panels, batteries, and electric vehicles.

India’s projected fiscal deficit for the 2026 fiscal year is 4.4% of GDP. This is better than the 4.5% that markets were anticipating and significantly lower than the 4.8% deficit in the 2025 fiscal year.

The Union Budget exceeded expectations regarding direct taxes but didn’t include any major new initiatives. It demonstrated both caution and a focus on stimulating economic growth. Recognizing the slowdown in urban consumption, the budget aims to boost middle-class spending power. This is expected to initially increase demand, and if that demand proves strong and sustained, it could encourage businesses to invest in expanding their production capacity. Ultimately, this increased domestic consumption could trigger the private capital expenditure revival that the government has been seeking for several years.

It definitely seems like the finance minister had to navigate a tricky global landscape. With geopolitical tensions and tariff wars, making decisions that balances economic growth, domestic priorities, and global dynamics must have been quite the challenge.

Major Tax Reforms to Boost Consumption

Tax-free income limit raised to ₹12.75 lakh, infusing ₹1 lakh crore into middle-class households.

Expected to stimulate consumer spending, benefiting FMCG, retail, and discretionary sectors.

Massive Agriculture & Rural Development Push

₹1.7 lakh crore allocation (+21.7%) for agriculture and allied sectors.

Kisan Credit Card (KCC) loan limit increased from ₹3 lakh to ₹5 lakh to support farmers.

Dhan Dhanya Yojana launched to improve productivity and post-harvest storage.

Infrastructure & Capex Growth, but Below Expectations

₹11.2 lakh crore capex allocation, slightly higher than last year but lower than market expectations.

Defence outlay increased by 13% (₹1.8 lakh crore), but capital expenditure remains underwhelming.

Road & railway budgets remain stagnant, raising concerns over long-term growth.

Banking & Insurance Reforms

FDI limit in insurance sector raised from 74% to 100%, allowing foreign firms full ownership.

ULIP taxation changes, making them less attractive investment options.

Credit guarantee cover doubled for MSMEs & startups, boosting business funding.

Strong Push for Green & Renewable Energy

Renewable energy budget hiked by 53% to ₹26,549 crore.

₹20,000 crore Nuclear Energy Mission for Small Modular Reactors (SMRs).

Expansion of PM Surya Ghar Muft Bijli Yojana for clean energy adoption.

The Union Budget 2025-26 was largely on the expected lines with focus on broad areas covering Poor, Youth,

Middle Class, Farmers, MSMEs, Export, Women and reduction of compliance burden. The budget aims to initiate

transformative reforms across six domains viz Taxation, Power, Urban development, Mining, Financial, and

Regulatory reforms.

Major focus of the budget was on revival of consumption leaving other expenditure heads either unchanged or

with marginal revision thereby ensuring fiscal prudence. In a big boost to the Indian middle class, Finance Minister

announced that there will be no income tax payable for income up to Rs 12 lakh under the new tax regime. The

idea behind the move was to boost consumption which is benign as highlighted by many consumer facing

businesses over the last few quarters.

Budget outlined 10 priority areas, viz,

1) Spurring agriculture growth and productivity

2) Building rural prosperity and resilience

3) Inclusive growth

4) Boosting manufacturing and Make in India

5) Supporting MSME

6) Employment led development

7) Investing in people, economy and innovation

8) Securing energy supplies

9) Promoting export

10) Nurturing innovation

Overall, Union Budget 2025-26 appears more consumption oriented and has set the stage for next leg of inclusive

growth of Indian economy in the backdrop of global policy uncertainties and trade wars.

Key takeaways

 Zero tax for salaried class up to Rs 12 lakh income: In a big boost to salaried class, government has made

income up to Rs 12 lakh completely free of tax (excluding capital gains). This will drive urban consumption

which has been languishing since last 2-3 quarters. This will create a positive impact on discretionary as well

as non-discretionary spending.

 Path of fiscal prudence is intact: The budget not only revised lower the FY25 fiscal deficit target to 4.8% of

GDP v/s 4.9% BE but also reduced FY26 fiscal deficit target to 4.4% of GDP. This entails total gross and net

borrowing for FY26 at Rs 14.82 lakh cr and Rs 11.53 lakh cr respectively.

 Capital outlay: The government expects FY26 capex to be at Rs 11.2 lakh cr which is 10.1% higher than RE

of Rs 10.18 lakh cr for FY25 - Inline with FY26E nominal GDP growth of 10.1%

 Further boost to MSME: MSME contributes 36% of India’s manufacturing, employs 7.5 cr people and

contributes 45% of India’s exports. To enable them achieve higher efficiencies of scale, technological

upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs

will be enhanced by 2.5x and 2.0x respectively. Steps includes enhancement of a) credit availability with

guarantee cover, b) credit cards for micro enterprises, c) fund of funds for startups, d) promote labour-

intensive sectors, and e) measures to boost domestic production of toys, footwear, food processing, etc.

SBI Securities Union Budget FY 2025-26 3

Union Budget 2025-26: Key Takeaways

 Focus on Defence, Railways and Infrastructure: The railways capex for FY26 is Rs 2.52 lakh cr similar to RE

for FY25. Marginal increase in capex towards laying of new lines, signaling, track renewals, payment of

capital components for leased assets, local trains in urban areas, etc is proposed. Overall defence budget is

up by ~Rs 40,000 cr to Rs 6.81 lakh cr with a capital outlay of Rs 1.8 lakh cr which is Rs 21,000 cr higher than

RE for FY25. NHAI allocation for FY26 is at Rs 1.70 lakh cr v/s Rs 1.69 lakh cr as per FY25 RE.

 Nuclear Energy Mission for Viksit Bharat: Development of 100 GW of nuclear energy by 2047 is essential

for energy transition efforts. Rs 20,000 cr is being allocated towards R&D of SMR (Small Modular Reactors).

This will create opportunitiesfor players specialized in building small reactors.

 FDI in insurance increase to 100% from 74%: This enhanced FDI limit will be available for those companies

which invest the entire premium in India. The move is expected to bring more players into the market and

drive innovation.

 Exemption of Basic Custom Duty (BCD) on raw materials, components, consumables or parts in ship

breaking shall help drive growth of ship building and repair industry.

Our View: Overall, we believe the Union Budget 2025-26 is a consumption led growth oriented budget in the

backdrop of slowing domestic economy and uncertain global environment. The reduction in personal income tax

burden is nothing short of stimulus to the tune of ~Rs 1 lakh cr. The extra money will flow back to economy in the

form of consumption or savings. Personal income tax cut also encourages retired population and pension earners

to park their savings in the FDs (kindly refer to the section of Direct Tax for further details) which augurs well for

deposit starved banks in medium to long term. The tempo of capex is maintained with record Rs 11.2 lakh cr

spending for the upcoming financial year. Going by the historical track record, we believe, many additional reform

measures and key policy decisions will be taken by the government outside of the Union Budget too. One such

reform is new income tax bill which will be in public domain in the ensuing week. We continue to remain

constructive on sectors such as Auto, Auto Ancillary, Realty, FMCG, Healthcare, Renewables, Railways, Defence,

ERW pipe makers and select banks and NBFCs with medium to long term investment horizon.

“The Union Budget 2025-26 presents a well-balanced and robust economic framework that effectively intervenes fiscal discipline with growth initiatives. A targeted fiscal deficit of 4.4% of GDP communicates to global investors about India’s commitment to macroeconomic stability while sustaining growth momentum.

What sets this budget apart is its simultaneous emphasis on structural reforms across critical sectors including taxation, urban development, mining, the financial sector, power, and regulatory frameworks thereby addressing essential segments of the economy.

The infrastructure investment, highlighted by the ₹25,000 crore Maritime Development Fund and the ₹1.5 lakh crore interest-free loans to states for infrastructure development, lays a strong foundation for long-term infrastructure growth. Additionally, the asset monetisation plan’s target of Rs 10 lakh crore showcases the government’s innovative approach to infrastructure financing, potentially paving the way a new era of public-private partnerships.

Notably, the budget adopts a nuanced approach to agricultural transformation. The PM Dhan Dhyan Krishi Yojana’s targeted interventions in 100 low-yield districts, combined with the national mission for high-yielding seeds and a comprehensive pulses self-sufficiency programme, are a significant step forward for Indian agriculture. These initiatives have the potential to fundamentally alter rural economics and address persistent challenges related to agricultural productivity.

The taxation relief provided to individual investors is fundamentally enhanced. Extending the zero-tax liability threshold up to Rs 12 lakh (Rs 12.75 lakh for salaried individuals), the government has effectively provided more disposable income to the middle class.

The budget’s vision for innovation and urban development is equally promising. The Rs 20,000 crore innovation promotion fund alongside the Urban Challenge Fund has the potential to raise India’s potential among global knowledge economy. The strategic focus on establishing India as a global manufacturing hub for sectors such as toys, footwear, and leather also enhances our competitive advantages in labor-intensive manufacturing.

Perhaps the most transformative aspect of this budget is its approach to financial inclusion and entrepreneurship. The Rs 2-crore term loan scheme for women, SC, and ST entrepreneurs, supported by an enhanced credit guarantee cover of Rs 20 crore, could catalyze a surge of entrepreneurial activity at the grassroots level. This capital access may be the key to further unlocking India’s demographic dividend.

The urban development initiatives, particularly the Rs 1 lakh crore Urban Challenge Fund, recognises cities as vital engines of future growth. Coupled with power sector reforms and DISCOM rehabilitation, the budget addresses critical infrastructure bottlenecks that have historically constrained growth.

This budget has presented a comprehensive roadmap for India’s transition to Viksit Bharat status. The careful calibration of immediate economic stimulus with long-term structural reforms, while maintaining fiscal prudence, positions India as a model of sustainable growth amid an uncertain global economy. The emphasis on inclusive development is expected to positively impact growth in the coming years.

For capital markets, this budget would continue to serve as an engine of wealth creation for the larger population.”

Direct Tax proposal in the budget continued to make the new tax regime more attractive for resident taxpayers except for equity traders who will not benefit from rebates on his special rate income which is the subject matter of litigation and recently discussed in SLP filed before Hon’ble SC.

New tax income tax bill with half in the number of chapters as well as words existing in 64 year old present income tax law; will also be presented next week for comments.

Ongoing vivad se vishwas scheme 2024 and increase in monetary thresholds for filing tax dispute appeals by the department, reduced number of pending litigations to some extent. However, to reduce litigation in future, time limits of filing updated return is increased to 4 years and it gives golden chance to taxpayers to offer income which was not offered to tax and/or to forgo expenditure which can be subject to litigation. By which taxpayers can buy peace of mind and avoid penal consequences as well as to avoid cost of litigations.

Proposal to keep foreign remittances for the purposes of education (funded out of a loan obtained from specified financial institutions), outside the ambit of TCS supports intention of legislature of introducing said provision to ensure that proper tax compliance are done and money being sent abroad can be tracked.

Union Budget 2025-26 Review

The Indian economy continues to be the fastest-growing among major global economies, presenting a unique

opportunity over the next five years to realize Sabka Vikas by fostering balanced and inclusive regional growth. 

Asit C Mehta on Budget

The Union Budget 2025-26 builds upon the government’s commitment to accelerating economic expansion, securing

inclusive development, invigorating private sector investments, uplifting household sentiment, and enhancing the

spending power of India’s rising middle class. Four key drivers—Agriculture, MSMEs, Investment, and Exports—are

poised to fuel this journey of development. To support this momentum, a capital expenditure (Capex) allocation of

₹11.21 lakh crore (3.1% of GDP) has been earmarked for 2025-26. This budget also sets the stage for transformative

reforms across six crucial domains: Taxation, Power Sector, Urban Development, Mining, Financial Sector, and

Regulatory Reforms. Over the next five years, these reforms will strengthen India’s global competitiveness and drive

sustainable growth, ultimately steering the economy toward the vision of Viksit Bharat.

“The Union Budget introduced several transformative measures for MSMEs, signaling strong government commitment to support their growth. The revised MSME classification will encourage enterprises to scale, while enhanced credit access via increased credit guarantees, customized credit cards for micro-enterprises, and a new Fund of Funds will inject the much-needed growth capital into the MSME ecosystem. The focus on ease of doing business through regulatory reforms, targeted schemes for women entrepreneurs, and export incentives would further strengthen the sector. Direct Tax reforms boosting urban consumption and fiscal prudence also reaffirm the government’s commitment to sustainable and balanced economic growth.”

Consumption stimulus in the form of tax cuts (~Rs1trillion) is likely to provide boost to the urban middle class, for which the demand setting was muted in 2HCY24. Given the quantum of benefit, FMCG companies will need to strategize better to boost category growth. Near term, we expect consumer down-trading to be arrested and price hikes in categories to be absorbed. We expect players to shift focus on structural growth vs a promotion driven volume growth strategy. Such a shift in strategy may hurt margin delivery near-term, but will enhance prospects. We see the risk to our high single-digit to low double-digit revenue growth from FY26 largely mitigated. Also, such stimulus is positive from a valuation perspective, as the government has recognized support needs; this precedent will arrest any material sector de-rating (unlike other emerging economies). We stay selective on limited execution, and favor HUL and Emami.

Tax slab revision and rebates under new tax regime to aid consumption

We see announcements of a tax slab revision and rebates (up to Rs1.2mn income) under the new tax regime boosting the overall consumption growth. Savings per taxpayer are likely to be Rs2,500-9,150 per month. Given the quantum benefit, we see consumers opting for discretionary/big-ticket items equally. FMCG players will need to strategize better to benefit from the savings boost. We see execution being key to enticing consumers toward FMCG spends. Near-term, we expect category down-trading trends to be arrested and hence companies looking to effect price hikes.

Unchanged excise for tobacco products a positive for ITC

Steady taxation for cigarettes can be considered positive for formal consumption, which is seeing 3-4% volume CAGR. This too will help arrest illegal industry volume growth. We see a trend emerging – the GoI has been making tax changes every four years, which means taxation would be steady for 3 years at least. Had our expectations of a mid-single-digit taxation materialized, ITC would have retained volume and eased margin pressure with price hikes. ITC has historically effected price hikes largely with tax change.

Steady import duty for edible oil; asks for price hikes

Along with the sector, we too were hopeful of a duty rate revision amid the sharp surge in base commodity prices. Now, with unchanged taxation, we see the need for price hikes to offset the impact. In our coverage, savory snacks players have 1/4th dependence on imported palm oil, 1/5th for Godrej Consumer, and 10-15% for Nestlé, Britannia, HUL.

Trump says to hold talks Monday with Canada, Mexico on tariffs.

Tariffs could get a lot worse.

Tariffs planned on EU products ‘pretty soon’.

IDEXX Laboratories, Inc. (Pre market) (Sector- Healthcare)

Tyson Foods, Inc. (Pre market) (Sector- FMCG)

Palantir Technologies Inc. (Post market) (Sector- Technology)

NXP Semiconductors N.V. (Post market) (Sector- Technology)

Equity Residential (Post market) (Sector- Realty)

Clorox Company (The) (Post market) (Sector- FMCG)

Everest Group, Ltd. (Post market) (Sector- Financial)

Healthpeak Properties, Inc. (Post market) (Sector- Realty)

Mitsubishi UFJ Financial Group Inc (TENT) (Sector- Financial)

Super Micro Computer, Inc. (TENT) (Sector- Technology)

CHINA Market Holiday

10.30 INDIA HSBC Manufacturing PMI (Expected: 58.0 versus Previous: 56.4)

14.30 EURO Final Manufacturing PMI (Expected: 46.1 versus Previous: 46.1)

15.00 U.K. Final Manufacturing PMI (Expected: 48.2 versus Previous: 48.2)

15.30 EURO CPI Flash Estimate y/y (Expected: 2.4% versus Previous: 2.4%)

20.30 U.S. ISM Manufacturing PMI (Expected: 49.3 versus Previous: 49.3)

23.00 U.S. FOMC Member Bostic Speaks