(Reuters) – India’s Finance Minister Nirmala Sitharaman unveiled the annual budget on Saturday, which focused on boosting the spending power of its middle-class population, encouraging inclusive development and private investment to strengthen growth.
The broader stocks market, however, saw mixed reactions to the policies presented under the budget for 2025-26. [.BO]
Below are some of the key stock movements during the session:
CONSUMER GOODS
The fast-moving consumer goods index climbed 3% and logged its best day in eight months.
The Indian government said people earning up to 1.28 million rupees ($14,791.53) per year will not have to pay any taxes, raising its threshold from 700,000 rupees.
Executives from automobile and consumer firms said this move will put more disposable income in the hands of the people and boost consumption in the country.
Hindustan Unilever, Nestle and Dabur gained 1.5%-2%.
Shares of cigarette companies ITC and Godfrey Phillips India jumped 3.4% and 10.3%, respectively, as there were no tax hikes on tobacco products in the budget.
AUTOMAKERS
Two-wheeler companies Bajaj Auto, Hero MotoCorp and Eicher Motors jumped between 1.4% and 4%, powering auto index 2% higher, with analysts attributing the jump to budgetary measures to put more disposable income in the hands of the consumer through lower taxes. Major auto firms like Maruti Suzuki and Hyundai Motor India also added 5% and 4.4%, respectively.
REALTY
The real estate index gained 3.4% and posted its best day since June 6, 2024, with Phoenix Mills emerging as top gainer with 7.5% rise.
FOOTWEAR, FISHERIES STOCKS
Footwear makers Bata India and Liberty Shoes jumped 6.2% and 7.3%, respectively, on policy plans to support the leather industry.
Fisheries-linked stocks also advanced after the finance minister said the government will focus on sustainable harnessing of fisheries, especially in the Andaman and Nicobar Islands and Lakshwadeep.
Apex Frozen and Zeal Aqua jumped about 5% each among the major stocks.
INFRASTRUCTURE
Infrastructure-related stocks slumped, with the index down 1.1%, following ‘modest’ hike in capital spending announced in the budget.
Shares of L&T led losses in the index, down 3.4% and marking their sharpest one-day fall since Oct. 25, 2024
UltraTech, the country’s largest cement maker by capacity, settled 2% lower, having fallen as much as 6% earlier.
Ircon International shed 9.3% to emerge as the worst hit stock in the Nifty 500 index.
INSURERS
HDFC Life, SBI Life and ICICI Prudential Life fell between 1-3% as an increase in tax slabs tends to reduce incentive for a tax-saving insurance products.
($1 = 86.5360 Indian rupees)
(Reporting by Manvi Pant and Vivek Kumar M; Editing by Eileen Soreng)
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