Budget largely positive for consumption related
sectors like auto, personal care: PL Capital
Ø Nifty target at 27,100 by December ’25 provided stable earnings
and normal monsoon year
Mumbai, February 01, 2025: PL Capital- Prabhudas Lilladher,
one of the most trusted financial services organisations in India, held a
post-budget webinar by Mr. Amnish Aggarwal, Director Institutional research,
PL Capital. According to the research house, the budget is largely positive
for consumption related sectors like auto, personal care. Benchmark Nifty 50 is
expected to trade near 27,100 level by December 2025 provided stable earnings
and normal monsoon year.
Consumption Boost
The changes in the income tax slabs will increase
the discretionary income, thereby leaving more money in the hands of the
consumer. This is a big positive on consumption, sectors like auto, personal
care will witness a boost in business. PL Capital expects Maruti Suzuki to be
the biggest beneficiary of rising discretionary income post budget, M&M
will gain if monsoon is normal, they are positive on Eicher Motors in the two
wheeler space.
Rate cut
PL Capital expects atleast one rate cut by the RBI
in the current calendar year. A reduction in the interest rates will be
positive for Banks and NBFCs.
Capex
The Government announcing a Rs 12 lakh crore capex
budget indicates their seriousness to kick start capex cycle. While the
government capex is ample, the private capex is required for a higher economic
growth. The high capex budget is a positive, expect the capex related companies
to do well due to this. PL Capital expect railways to do well on the back on
high government capex spend. They are positive on L&T, Siemens, Praj
Industries.
Market
projection
The
market is expected to post double-digit growth for the current calendar year.
The benchmark nifty 50 is expected to be near 27,100 level provided stable
earnings and normal monsoon year.
Global
factors
The US
increasing its crude oil production will lead to softening in prices. This will
be a big long-term positive for India as we are net importers of crude oil. PL
Capital expects crude to trade in the range of 60-80/bbl if US production rises
as per their initial claims.
