Business

6 factors how the budget impacts stock market in India

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Government Spending and Infrastructure Investment

Increased government spending can stimulate economic growth, benefiting sectors like construction, defense, healthcare, and education, thereby boosting related stocks.

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Tax Policies

Changes in tax rates, deductions, and credits can directly impact corporate profits and consumer spending. Lower corporate taxes can increase potentially boosting stock prices.

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Interest Rates

Budgets may influence monetary policy decisions by central banks, which in turn affect interest rates.

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Sectoral Allocation

Budgets often prioritize certain sectors through subsidies, incentives, or regulatory changes. 

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Debt and Deficit Levels

Budget deficits and national debt levels can impact investor confidence and government borrowing costs. 

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Consumer Confidence and Economic Outlook

A well-received budget that supports can boost consumer confidence, leading to increased consumer spending and benefiting sectors like retail, hospitality, and entertainment.

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