Finance Minister Nirmala Sitharaman is scheduled to present the Budget for the financial year 2020-21 on February 1. Ashika Stock Broking’s President of Equity Research Paras Bothra talks about his expectations from the Union Budget 2020-21:
“For this Budget, the government might put more money in the hands of rural people which might help to revive rural demand for FMCG and other consumer-focused companies. A cut in personal income tax (even in the Rs 5-10 lakhs bracket) could fuel demand for automobiles and consumer durables. There could be SOPs addressed towards the domestic MSME sector in particular given the hue & cry. Thus, select midcaps & small-caps together with rural & MSME focused banks could gain on account of the eventuality of the same.
The government’s effort to revive employment generating sectors will be the primary agenda and we think ancillary businesses related to construction, infra, and real estate will be the sweet spot. Relaxing the LTCG tax and tweaking of the DDT will be favorably taken by the market and will be the key driving force as far as market direction and upward momentum is concerned.”
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