What foreign brokerages Nomura and UBS have to say on Union Budget 2025
1 month, 3 weeks ago

What foreign brokerages Nomura and UBS have to say on Union Budget 2025

Live Mint  

The Indian stock market experienced heightened volatility on February 1, 2025, following the announcement of the FY26 Union Budget by Finance Minister Nirmala Sitharaman. While the budget introduced substantial changes in income tax slabs, which aimed to boost middle-class consumption, market sentiment remained mixed due to concerns about the government’s reduced focus on capital expenditure. Foreign Brokerages on Budget 2025: Nomura Nomura's Sonal Varma, Chief Economist, commented on the budget’s balanced approach, noting the fiscal discipline coupled with measures aimed at supporting growth. UBS UBS analysts have highlighted that the Union Budget 2025 strikes a balance between stimulating near-term growth and maintaining fiscal discipline, while addressing concerns about softer domestic growth and global uncertainties, such as tariff risks under "Trump 2.0". UBS analysts noted that while the urban consumption boost of ₹1 trillion is positive for sectors like consumer durables, two-wheelers, and banking, the capex increase of only 10.1 per cent YoY is disappointing, especially when compared to the 30 per cent YoY growth seen between FY22-24.

History of this topic

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