Kolkata: Ace investor and market veteran Vijay Kedia is of the opinion that the disposable income that Finance Minister Nirmala Sitharaman has placed in the hands of taxpayers is likely to trigger a lot of liquidity in the market. He told the media that the step of the FM will raise consumption but might not trigger a shift in the stock market. Kedia said this after the budget when the markets made a U turn after rising more than 1,000 points in the morning trade on February 1, when FM presented her eighth Budget.
Kedia is known for sniffing out quality stocks. According to reports, some of his favourite stocks are Tejas Networks, Neuland Laboratories, Global Vectra, Elecon Engineering Company, Atul Auto, Sudarshan Chemical Industries, Vaibhav Global, Mahindra Resorts etc.
Budget better than expected, but not likely to help markets now
The ace investor said the income tax reliefs is likely to add Rs 1 lakh crore of extra liquidity in the system. In a press conference after the Budget, Nirmala Sitharaman revealed that following the new relief that she has proposed, about 1 crore more people will not pay any income tax in for FY26. She also hoped that the additional cash in the pocket of the people would trigger aggregate consumption that should have a positive impact on growth and employment generation.
According to the new income tax revisions, a taxpayer won’t have to pay any income tax till the income of Rs 12.75 lakh a year, which takes into account the standard deduction of Rs 75,000 after Rs 12 lakh. Despite ruling out the Budget breathing life into the stock market immediately, Vijay Kedia did admit that the Budget was “better” than expected. “Budget was better than expected. The exemption of income tax will add Rs 1 lakh crore in the system. This may boost some consumption which is positive for the economy. However, the announcement may not bring any major move or shift in the markets,” Kedia was quoted in the media as saying. Kedia, who is known to have a skill of spotting value stocks, told the media that after the correction that began in the market after October some of the shares came down to reasonable levels of valuation.
Vijay Kedia who is famed for his stock picking skills thinks the budget is “better than expected”, will inject liquidity into the system but is unlikely to boost the market right now. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
