The Income Tax Bureau estimates that a rupees can be used by taxpayers by changing slabs, fees, and rebate. Nomura estimates that tax reductions can lead to an increase in numbers in disposable income between individuals and households.
“Changing personal income tax does not only increase the disposable income of the household, increase discretionary expenditures, but also encourage more investment. The higher the discretionary income by consumers is the standard. This should be useful for promoting discretionary products.
The Nifty FMCG index has decreased by about 19 % from the 52-week peak, and has stocks such as Colgate-Palmolive, Balrampur China, Godrej Consumer, Britannia Industries, and Dabur India.
With the weak revenue season and concerns about Trump’s tariffs that affect the growth of the world, analysts want to support the market to some extent in FY2016.
In addition to bringing profits to urban consumers, this budget has also increased significant allocation to rural employment schemes, agriculture, and infrastructure development, which can also improve consumption in non -cities. I have sex. He stated that companies with a wide range of rural distribution networks are fully positioned to make a profit from this expected demand.
Beyond the budget
In addition to budget factors, consumers have been gaps for four years, and since consumer positioning has been the lightest for a long time, the sector is considered to be a comeback, so consumer stock is technically technical. It looks attractive from a point of view.
Since 2021, after the powerful out -performance of value investors, Elara Securities has said that the market has gradually returned to growth/quality style. In such a cycle before relative returns began to return to quality, consumption is always excellent.
“The weight of the consumer name of the NSE500 index has increased in an exponential function in 2019-2020. From 10 % to 15 % between 19 and May 19, weigh now in 18 months. Snil Jine, Ellara Capital, has begun to decrease since January.
Similarly, the weight of FMCG shares has rapidly decreased since March 2020, and has been the lowest level since July 2011 and June 2014.
The equal weight FMCG index has significantly reduced the equal weight Nifty Index since April 2013, and all recovery did not exceed 200-DMA.
“However, despite the recent disappointment of the number of FMCG, the ratio has shown signs of stabilization since the past few months. Jane said that the market was also weak.
Which consumer shares do you buy after your budget?
Nomura analysts say that ambitious and postponed consumption is mostly profitable.
“We hope that discretionary categories such as jewelry, food delivery, paint, retail, and travel -related categories will confirm the most advantages. Especially in the sick city /middle class, the relief is volume. In order to support the growth, Stapler companies hope that the FMCG companies will take over the prices and improve their prospects and prospects. I will make it easier. “
Motilal OSWAL stated that the staple food company is a clear winner, especially if such savings can be used for more important products because the city consumption is exposed to pressure.
Demand is also expected to be increasing in demand for other consumers such as QSR, innerwear, and alcohol. Securities companies bet on Trent, Hul, Titan, Page Industries, Metro Brands.
Yes securities are the main ones such as Havells, Orient Electric, Voltas, Blue Star, Symphony, TTK Prestige, and IFB I am looking at endurance goods as a beneficiary.
Lists that may be the beneficiaries of SBI SECURITIES are FMCG (Hul, DABUR, ITC, etc.), hotels (Indian hotels, lemon Tree, etc.), consumer durability (Bluestar, Amber Enterprises, Havells), and Auto. OEM, Jewellery player is included. , Titan).
By using a factor-based investment strategy, Share.market has identified Hul and Colgate-Palmolive in the consumption pack.
(Disclaimer: Recommendations, proposals, opinions, and opinions given by experts are unique. These do not express the views of the economic era)
