Factbox: -Corporate winners and losers from India's budget

Sbi Life Insurance

01/02/2025 10:51

Feb 1 (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  .NIFTYFMCG  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  HLL.NS , Nestle and Dabur  DABU.NS 
gained 1.5%-2%.
    Shares of cigarette companies ITC  ITC.NS  and Godfrey
Phillips India  GDFR.NS  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  BAJA.NS , Hero MotoCorp
 HROM.NS  and Eicher Motors  EICH.NS  jumped between 1.4% and
4%, powering auto index  .NIFTYAUTO  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  MRTI.NS  and Hyundai
Motor India  HYUN.NS  also added 5% and 4.4%, respectively. 
    
    
    REALTY 
    The real estate index  .NIFTYREAL  gained 3.4% and posted
its best day since June 6, 2024, with Phoenix Mills  PHOE.NS 
emerging as top gainer with 7.5% rise. 
    
    
    FOOTWEAR, FISHERIES STOCKS 
    Footwear makers Bata India  BATA.NS  and Liberty Shoes
 LIBS.NS  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  APEX.NS  and Zeal Aqua  ZEAQ.BO  jumped about
5% each among the major stocks.
    
    
    INFRASTRUCTURE
    Infrastructure-related stocks slumped, with the index
 .NIFTYINFR  down 1.1%, following 'modest' hike in capital
spending announced in the budget.
    Shares of L&T  LART.NS  led losses in the index, down 3.4%
and marking their sharpest one-day fall since Oct. 25, 2024
    UltraTech  ULTC.NS , 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  .NIFTY500 . 
    
    INSURERS
    HDFC Life  HDFL.NS , SBI Life  SBIL.NS  and ICICI Prudential
Life  ICIR.NS  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)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Sectoral impact due to announcements in union budget for fiscal
year 2026    https://reut.rs/3PWrVjX
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Manvi Pant and Vivek Kumar M; Editing by Eileen
Soreng)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))