Stock market investors expect stable budget, government will emphasize on job creation

Union Budget 2023: Finance Minister Nirmala Sitharaman will present the budget for the financial year 2023-24 on February 1. Overall, six of the last 10 years saw a rise before the budget, and six times a fall in the last 10 years after the budget.

share market investors Is expecting a stable budget this time. He believes that the government will lay emphasis on job creation, increasing spending on basic infra, controlling the deficit and improving the economy in the general budget. There is a sluggish trend in the stock markets before the general budget. BSE Sensex has been almost flat this month. Even the quarterly results of the companies failed to enthuse the markets.

However, positive movement was seen in some indices like IT and Bank. foreign portfolio investors (FPI) Has withdrawn more than Rs 16,500 crore from the domestic stock markets so far this month. Apart from this, investors are also cautious about the fear of inflation and global recession.

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Generally, silence is seen in the stock markets before the general budget. Finance Minister Nirmala Sitharaman will present the budget for the financial year 2023-24 on February 1. Overall, six of the last 10 years saw a rise before the budget, and six times a fall in the last 10 years after the budget.

Narendra Solanki, Head of Equity Research, Anand Rathi Shares & Stock Brokers Said that equity investors are expecting a uniform tax structure for capital gains in its upcoming budget 2023 from the general elections. He said that apart from this, investors would also like fiscal consolidation, which is necessary for financial stability in the economy. Investors are also looking forward to policy reforms to remove obstacles coming in the way of growth. These policy reforms include subsidies, a clear guideline for disinvestment targets and expediting privatization of PSUs.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said”The market will keep an eye on the fiscal deficit for the financial year 2023-24. A figure above six per cent will disappoint the market. But, its chances are less. He further said that if the capital gains tax is increased, then this proposal can have a negative impact on the market.

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Sumit Chanda, Founder and CEO, Jarvis Invest Said that if there is more disposable income in the hands of the salaried class and corporate, then the market will go up. He added that any change in tax slabs for the salaried class or any stimulus to corporates in the form of capital expenditure or lower taxes would be considered positive and a post-budget rally in the market can be expected.