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Below the Quote on Market By Krishna Appala, Sr. Research Analyst, Capitalmind Research

“Nifty Awaits the Budget Spotlight. In the past week, Nifty has recorded a slight gain of 0.7%, following a substantial 12% rally since the election day close. The market commenced the Q1FY25 earnings season on a positive note, with TCS reporting robust figures: a 5.4% YoY revenue growth and an 8.7% profit growth. These results have provided a much-needed boost to the IT sector, where sentiment has been sluggish, and valuations appear reasonable.PSUs are currently leading the market, particularly those in the Railways, Defence, Shipbuilding, Power Financing, and Industrial sectors. The upcoming budget session on July 23rd, is anticipated to deliver further incentives, including investments and capital expenditure, for these sectors. On the global stage, the US core CPI inflation for June stood at 3%, with consumer prices experiencing their first decline in four years as inflation eases. This data suggests that the Federal Reserve might implement one or two rate cuts by the end of the year.As the budget session approaches, the market is optimistic that the government will maintain its focus on infrastructure, defence, railways, and green energy. As of now, the market is not factoring in any negative surprises in the form of income tax changes, LTCG, STCG, STT, etc. Any changes in these areas will be a short-term negative impact on the market.”

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