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Jagdishen is a specialist in capital raising, investor outreach, and M&A.
February 3, 2025 at 8:38 AM IST
The Union Budget 2025 claims to prioritise self-reliance, sustainability, and inclusive growth. While initiatives like income tax relief, support for agriculture, and clean energy manufacturing have been well-received, concerns linger over lower capex allocations and the absence of major reforms in key sectors. Here’s a first-impression analysis of the budget’s impact on stocks, categorised into positive, negative, and mixed outcomes.
| Sector/Initiative | Impact | Stocks Affected |
| Positive | ||
| No hike in tobacco tax rates | Stability ensures no additional financial burden on the sector | ITC, Godfrey Phillips, VST Industries |
| Income tax exemption up to ₹1.2 million | Boosts disposable income, potentially driving consumer spending | Zomato, Swiggy, HUL, Nestle, Dabur, Trent, Jubilant FoodWorks, Varun Beverages, United Spirits, Asian Paints, Voltas, Havells |
| Atmanirbhar Bharat in pulses and high-yielding seeds | Enhances productivity for agri-based companies | Kaveri Seeds, Indo-US Biotech, Mangalam Seeds, Dhanuka Agritech, Nath Bio-Genes |
| PM Dhan-Dhaanya Krishi Yojana | Benefits companies involved in irrigation and agri-infrastructure | Jain Irrigation, Shakti Pumps, Jash Engineering, Finolex Industries |
| PM SVANidhi and UPI-linked credit cards | Boosts digital transactions and financial inclusion | Fino Payments Bank, Paytm |
| Focus on fisheries and aquaculture | Sustainable growth potential for seafood companies | Avanti Feeds, Coastal Corp, Kings Infra, Zeal Aqua, Apex Frozen Foods |
| EdTech and AI upskilling initiatives | Favourable for skill development firms | NIIT, NIIT Learning, CL Educate |
| Negative | ||
| Lower FY25 capex (₹10.18 trillion) | A setback for infrastructure and defence companies | L&T, JK Infra, NCC, Bharat Dynamics, Apollo Micro, BEL, HAL |
| No changes in 80C/80D exemptions | Reduces attractiveness of insurance products | HDFC Life, ICICI Lombard, Go Digit, PB Fintech |
| No major announcement on LPG subsidy | Potentially impacts oil marketing companies' profitability | IOC, HPCL, BPCL |
| Lower allocation for defence, IT, telecom | Dims growth prospects | BEL, HAL, Bharat Dynamics, Apollo Micro, Infosys, TCS, Wipro |
| Mixed | ||
| Focus Product Scheme for footwear and leather | Growth potential dependent on consumer demand | Mirza International, Redtape, Metro Brands, Campus Active, Liberty |
| Measures for the toy sector | Positive for niche players, but with limited market size | Shaily Engineering, OK Play |
Disclaimer: This article is intended to provide news analysis and general information. It should not be considered as investment advice.
The Budget offers a blend of opportunities and challenges. While tax reliefs, agricultural support, and clean energy incentives create growth potential for FMCG, agri-tech, and renewable sectors, reduced capex and the absence of bold reforms may temper prospects for defence, IT, and infrastructure companies.
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