Automobiles and FMCG are likely to get a boost from higher rural spending
FinTech BizNews Service
Mumbai, January 30, 2024: As the Indian budget approaches, BFSI companies are buzzing with anticipation. Pranav Haridasan, MD and CEO, Axis Securities, reveals the expectations from the interim budget and its impact on the equity markets: “We believe that the interim Budget will retain the growth roadmap and reaffirm the government's commitment to long-term growth, with a continued focus on infrastructure development. The impact of the Union Budget on the equity market has reduced notably over the past few years, with the government undertaking most of the reforms outside the purview of the Budget. Nonetheless, the market participants continue to view it as a critical catalyst stimulating the growth of the Indian economy and, thereby, the Indian market. With the Budget being an interim one and a vote on account, we do not see significant announcements in this Budget. However, we expect key policy reforms, such as Atmanirbhar Bharat, Make in India, and the PLI scheme, to continue and receive further impetus in FY 25. There may be an increased emphasis on power, utilities, and renewables. Railways, infrastructure, and capital goods companies are poised to remain in the spotlight with higher capex spending. Automobiles and FMCG are likely to get a boost from higher rural spending.”
