The stock market in India, represented by the Sensex and Nifty indices, has recently reached all-time highs, buoyed by optimism surrounding the upcoming budget and various sector-specific expectations. Here are the key points highlighted by experts:
1. **Current Market Performance**: Both Sensex and Nifty have surpassed significant milestones, with Sensex breaching the 79,000 mark and Nifty surpassing 24,000. This surge comes after an initial setback after the Lok Sabha election results.
2. **Optimism Around the Budget**: Experts, including Dr. Ravi Singh from Religare Broking, attribute the current market optimism to the upcoming budget. They anticipate positive outcomes driven by increased government capex (capital expenditure) and policy continuity.
3. **Sectoral Expectations**: Several sectors are expected to benefit notably from the budget. These include defense, infrastructure, and Public Sector Undertakings (PSUs). Investors are hopeful for significant policy allocations and continuity in these sectors.
4. **Focus on Indigenisation and Infrastructure**: The government is likely to emphasize indigenization in defense, aiming to boost domestic manufacturing, reduce import dependency, and create local employment. Infrastructure, including railways, is set for modernization and expansion, enhancing passenger experience and safety.
5. **PSU Reforms and Financial Stability**: Capital reconstruction for PSUs is prioritized to improve their financial stability and operational efficiency, which is seen as a positive move by investors.
6. **Expectations on Tax Relief**: There is hope among investors for a reduction in Securities Transaction Tax (STT), which could alleviate financial burdens.
7. **Continuation of Successful Schemes**: The Production Linked Incentive (PLI) scheme is expected to see further extension and capital allocation, following its success in promoting manufacturing and exports.
8. **Budget Presentation Timing**: Finance Minister Nirmala Sitharaman is expected to present the 2024 Budget on July 22 or July 23, according to media reports.
Overall, the market sentiment remains bullish leading up to the budget announcement, driven by expectations of supportive policies across key sectors and potential fiscal reforms.
