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Below the Quote on market by Krishna Appala, Sr. Research Analyst, Capitalmind Research

“In the past week, Nifty has recorded a slight gain of 0.3%, driven by strong performances and positive growth forecasts from IT majors TCS, Infosys, and HCL Tech. As we approach the budget next week, the spotlight is on key sectors: Capital Goods, Defence, ESM, and Tourism. The market anticipates a continuation of last year's incentives, maintaining the status quo.

Capital Goods: The government plans a Rs. 4.75 lakh Cr investment to upgrade India's power transmission, targeting 618 GW capacity by 2028, along with metro expansions in over 40 cities and Rs. 1.5 lakh Cr in oil and gas.

Defence: The defence budget has increased to Rs. 6.2 lakh Cr, aiming for 70% self-sufficiency and a Rs. 1.75 lakh Cr turnover by 2025.

Electronics: The government is incentivizing domestic production with Rs. 76,000 Cr, projecting the ESDM market to grow from $25B to $100B in 5-7 years.

Tourism: The market is expected to expand from $24.6B in 2024 to $31B by 2029, with demand outpacing supply.

Budget expectations include larger PLI in battery manufacturing, toys, and high-end machinery, with increased support for sectors like semiconductors, renewable energy, nuclear power, and low-cost housing. A continued focus on infrastructure, including roads, railways, ports, airport expansions, defence, and tourism, is vital. Currently, the market isn’t anticipating negative surprises in areas like income tax, LTCG, STCG, or STT. However, any changes could have a short-term negative impact.”

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