Considered to be one of the best budgets in recent times, the Union Budget 2025 presented by Finance Minister Nirmala Sitharaman has come as a big relief to the middle class. A back to basics budget, Budget 2025’s top highlight was the zero income tax payable announcement for individuals earning up to ₹12 lacs, under the new tax regime. The earlier threshold for the same was ₹7 lacs.
During her 8th consecutive and shortest budget speech till date, FM Sitharaman spoke about how “The new structure will substantially reduce taxes on the middle class and leave more money in their hands, boosting household consumption, savings and investment.
Let’s break down the sectors and stocks that could potentially benefit from Budget 2025 and investors should watch out for:
Top 6 Sectors to watch out for Post Budget 2025
1. FMCG Sector: Increased disposable income boosts consumer spending
With Budget 2025’s tax relief announcements, Indians will now have more cash in hand, which could directly benefit the Fast-Moving Consumer Goods (FMCG) sector. The rise in disposable income can lead to higher demand for daily essentials and premium products alike. The FMCG industry has seen immense growth post it’s recovery after the pandemic. Additionally, aspirational India is also seeing a rising demand for premium FMCG products.
| Stock | Market Cap (₹ Cr) | Return 1D | Return 1Y |
| Hindustan Unilever (HINDUNILVR) | 588,470 | 1.47 | 2.18 |
| ITC Ltd. (ITC) | 578,539 | 3.14 | 12.12 |
| Nestle India (NESTLEIND) | 224,152 | 0.73 | -6.21 |
| Varun Beverages (VBL) | 189,601 | 4.71 | 9.16 |
Tata Consumer Products | 105,823 | 4.16 | -6.85 |
Explore all the top FMCG sector stocks post Budget 2025 here
2. Consumer Durables: Stronger Spending Power on the rise in Urban India
With additional tax savings for the middle class post Budget 2025, discretionary spending is also likely to increase. This will be complemented with the Government’s strategic focus on Make in India to boost domestic manufacturing and the rising urban demand for premium products. With that, the consumer durables and electronics sector could be an attractive investment opportunity.
Explore the top Consumer Durables stocks post Budget 2025 here
3. Realty: Increased home buying sentiment post-tax relief
With the government’s YoY increase in capex and incentives towards the infrastructure and urban development space, the real estate sector is set to benefit from a revival in housing demand and commercial property investments. The higher infrastructure spending will also likely boost realty demand.
| Stock | Market Cap (₹ Cr) | 1D Return (%) | 1Y Return (%) |
| DLF (DLF) | 1,88,297 | 2.21 | -3.89 |
| Macrotech Developers (LODHA) | 1,26,115 | 4.92 | 14.83 |
| Godrej Properties (GODREJPROP) | 71,150 | 0.88 | -0.65 |
| Phoenix Mills (PHOENIXLTD) | 63,066 | 6.59 | 42.35 |
| Prestige Estates (PRESTIGE) | 61,509 | 5.77 | 18.15 |
Explore the top Real Estate stocks post Budget 2025 here
4. E-commerce & Food Delivery: Increased consumer spending on convenience-based services
With the government’s push for a digital economy and rising digital transactions growing consumer reliance on online shopping and food delivery, the e-commerce sector could likely continue its upward trajectory.
Explore the top e-commerce stocks post Budget 2025 here
5. Renewable Energy: Solar, Wind, and EV sectors to thrive
FM Sitharaman’s Union Budget 2025 has reinforced its commitment to renewable energy and sustainability. The government’s incentives for clean energy production, push for EV adoption and rising global demand for sustainable solutions will pave the way for solar, wind and the EV sector to grow fast.
| Stock | Market Cap (₹ Cr) | 1D Return (%) |
| NTPC Green Energy (NTPC) | 96,844 | -0.57 |
| Waaree Energies (WAAREEENER) | 69,000 | 0.1 |
| Premier Energies (PREMIERENE) | 49,364 | 5.81 |
Explore the top green energy, solar and energy stocks post Budget 2025
6. Automobiles: Boosted consumer spending on vehicles
Budget 2025 has set the stage for strong growth in the automobile sector, driven by the tax relief measures and the continued push for electric vehicle (EV) adoption, EV manufacturing and infrastructure development. With this rising demand and policy support, automobile stocks—especially those focused on EVs and fuel-efficient models could see gains in the future.
| Stock | Market Cap (₹ Cr) | Return 1D | Return 1Y |
| Maruti Suzuki (MARUTI) | 406320.1 | 4.87 | 21.22 |
| Mahindra & Mahindra (M&M) | 382795.1 | 2.68 | 85.26 |
| Tata Motors (TATAMOTORS) | 259924.3 | -1.42 | -19.6 |
| Bajaj Auto (BAJAJ-AUTO) | 255378.1 | 3.47 | 18.32 |
Eicher Motors (EICHERMOT) | 147644 | 3.85 | 40.9 |
Explore the top EV sector stocks post Budget 2025 here!
Also read: Highlights of the Union Budget 2025
Conclusion - What Should Investors Do?
Exciting opportunities have emerged across various sectors post Union Budget 2025. While the FMCG and consumer durables sectors will benefit from the tax relief announcement, real estate and renewable energy could gain from the government policies. In such a situation, investors should closely monitor the market trends and policy changes. Additionally, while diversification across sectors is beneficial, it is also very important to be aware of company fundamentals and not act hastily in the stock market.
Research Analyst: Farhan Sayyed (Research Analyst Registration No. INH000018948| BSE RA Enlistment No. 6428)
Source: Budget Speech as on 01st February 2025, Screener.in | Data as on 1st Feb 2025
Disclaimer
This blog is for general/educational information purposes and is no way to be considered as advice, or recommendation for investment or otherwise.
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