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PL Capital- Prabhudas Lilladher, one of the most trusted financial services organisations in India, held a post-budget webinar by Mr. Amnish Aggarwal, Director Institutional research, PL Capital. According to the research house, the budget is largely positive for consumption related sectors like auto, personal care. Benchmark Nifty 50 is expected to trade near 27,100 level by December 2025 provided stable earnings and normal monsoon year.

Consumption Boost

The changes in the income tax slabs will increase the discretionary income, thereby leaving more money in the hands of the consumer. This is a big positive on consumption, sectors like auto, personal care will witness a boost in business. PL Capital expects Maruti Suzuki to be the biggest beneficiary of rising discretionary income post budget, M&M will gain if monsoon is normal, they are positive on Eicher Motors in the two wheeler space.

Rate cut

PL Capital expects atleast one rate cut by the RBI in the current calendar year. A reduction in the interest rates will be positive for Banks and NBFCs.

Capex

The Government announcing a Rs 12 lakh crore capex budget indicates their seriousness to kick start capex cycle. While the government capex is ample, the private capex is required for a higher economic growth. The high capex budget is a positive, expect the capex related companies to do well due to this. PL Capital expect railways to do well on the back on high government capex spend. They are positive on L&T, Siemens, Praj Industries.

Market projection

The market is expected to post double-digit growth for the current calendar year. The benchmark nifty 50 is expected to be near 27,100 level provided stable earnings and normal monsoon year.

Global factors

The US increasing its crude oil production will lead to softening in prices. This will be a big long-term positive for India as we are net importers of crude oil. PL Capital expects crude to trade in the range of 60-80/bbl if US production rises as per their initial claims.

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