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Below the Quote on Market Outlook by Sunil Damania, Chief Investment Officer, MojoPMS

"The Indian stock market’s wealth creation story has hit a roadblock, with many investors who thrived in 2024 now facing significant portfolio losses. As the Union Budget approaches, the critical expectation is to revive market sentiment. Recent budgets have seen increased taxation on the capital market—higher STT, capital gains taxes, taxation of dividend income in shareholders’ hands, and the removal of tax benefits on buybacks.

This year, it’s imperative for the Finance Minister to avoid introducing new taxes on investors. Instead, providing meaningful tax rebates to enhance consumer spending power could help revive the consumption cycle. Additionally, while higher capex allocations are welcome, the Budget should include clear quarterly timelines for actual spending. Without effective execution, increased allocations lose their impact.

Finally, if achieving these goals requires a temporary relaxation of the fiscal deficit, it should be considered a necessary trade-off for long-term economic growth."

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