New Delhi: With stock market benchmark indices taking a beating in the last 3-4 months, the investors are hoping that Finance Minister Nirmala Sitharaman presents some big ticket announcements while presenting the Budget 2025 which could bring back Foreign Institutional Investors and also boost the sentiments of domestic players.
Speaking to News9, Markets are gearing up Gaurang Shah, Sr Vice President, Geojit Financial Services Ltd expressed his opinions on the upcoming Budget that will be presented on February 1, 2025.
Expert Predictions: Tax Cuts and Market Revival
Shah said he has a slight bit of hope from the upcoming budget as the government can weigh in factors such as slowing consumption, slowdown in capex, slowdown in credit growth, threats coming from the global economy and newly-elected US President Donald Trump’s statements on tariffs.
The Geojit Financial Services VP said the government should announce some tax reliefs like reducing the tax slabs as this could help people to save money. He, however, said such a step would not turnaround the markets overnight, but can surely give some boost.
Impact of FII Sell-off on Indian Stock Market
The domestic stock market have been on the downtrend since October 2024. The POSU stocks which were once the darling of the investors have fell sharply. Not to forget the Railway stocks, IRCTC, IRFC, RVNL, IRCON, RITES and other shave also ‘corrected’ sharply.
The major big reason for the decline in the stock market is the relentless selling by the foreign investors. The FIIs’ net sales have neared the $8 billion mark in January 2025 and there are still three days left for the month to end.
The FIIs have been selling equities driven by expectations of a weak Q3 earnings season, a steady rise in the US dollar, and concerns over tariff war during Donald Trump’s presidency. In December 2024, the FIIs made an investment of Rs 15,446 crore.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds and crypto assets.)
With the Indian stock market experiencing a downturn, investors eagerly await Budget 2025. Geojit Financial Services’ Gaurang Shah anticipates tax relief measures to stimulate consumption and investment. The significant FII sell-off, driven by concerns about Q3 earnings, a strengthening US dollar, and potential tariffs, has fueled the market decline. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
