Magazine : 
Budget 2024: Expectation of Booming Stocks and More Disposable Income
India is close to getting its 2024 Budget, with the stock market buoyant and high hopes of tax relief for the common man. Investors and analysts feel they're on the brink of making hefty gains since the policy measures underway are very conducive to consumer spending and betterment of infrastructure.
The NSE Nifty 50 Index eases 0.1%: As per a Bloomberg poll of 24 strategists and investors, the NSE Nifty 50 Index may rise as much as 26,000 points by the end of this year, which is a growth of up to 20%. The index has already climbed 12% this year as it has scaled newer highs. A lower majority for Prime Minister Narendra Modi's BJP has prompted the investor community to switch its focus to the consumer sector, given to the expectation of more populist measures. Moreover, the prospects of agricultural companies have been heightened by an early monsoon.
Thirteen of the analysts surveyed said earnings growth of Nifty components would be strong, while five said optimism on earnings may be stretched. Data from Bloomberg Intelligence shows that earnings per share for MSCI India Index companies are seen growing 15.6% in 2024, outstripping Chinese firms' 10% gain.
"It is now eagerly awaited to spell out Modi's policy priorities with his new coalition government. Half of the surveyed respondents expect a balanced approach with incentives for consumption, being offset by capital expenditure in the form of infrastructure; a quarter think it will tend to capital expenditure, a quarter tend to give a fillip to consumer demand."
The most attractive alternatives were seen to be the consumer discretionary stocks, with financials and commodities shares following. Not just among investors, the optimism is also holding out some hope for taxpayers. The government is mulling several measures to augment disposable income. It is considering tax relief.
Among the proposals are increasing the exemption limit in the new tax regime to Rs 5 lakh per annum, against the current Rs 3 lakh. This is expected to be in conformity with the EWS criteria for having a gross annual family income below Rs 8 lakh. Another available possibility is to make it so that there is nil tax liability for an income of up to Rs 8 lakh per annum.
"If the exempted limit goes up to Rs 5 lakh, then people with goods incomes above Rs 7.5 lakh, who are not left much to do much post their tax payment, possibly average the highest at Rs 10,000 relief in terms of total tax liability. This is meant to leave more cash in the hands of taxpayers, increase consumer spending, and consequently, economic growth".
The Budget 2024 will, therefore, by and large, define the Indian economic space, one that will balance growth initiatives and fiscal prudency; hoards of millions of investors and taxpayers await to see the steps taken by the government that will possibly further the stakes at the stock markets and bring out enhanced financial relief to the people concerned.
Read More News :
