1 February, 2025; The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, brought significant relief to taxpayers by eliminating income tax for individuals earning up to ₹12 lakh after availing rebate under the new regime. This landmark announcement has triggered a sharp rally in the stock market, particularly in consumption-oriented stocks.
Investors and market analysts have observed a surge in companies tied to consumer spending, as higher disposable income is expected to drive greater demand across sectors. Among the biggest gainers are FMCG companies, liquor manufacturers, and retail chains. Here’s a closer look at some of the top-performing stocks post-budget:
1. Radico Khaitan Ltd.
One of India’s leading liquor manufacturers, Radico Khaitan, saw a significant jump in its stock price following the announcement. With increased disposable income, the demand for premium liquor brands is expected to rise, benefiting companies in this sector.
2. Avenue Supermarts Ltd. (D-Mart)
The retail giant D-Mart, known for its extensive chain of hypermarkets, witnessed an uptick in its stock value. Analysts predict that with more money in the hands of consumers, discretionary and essential spending at retail outlets will increase, boosting revenue for retail chains.
3. Hindustan Unilever Ltd. (HUL)
As one of India’s top FMCG companies, HUL is set to benefit from the rise in consumer spending on daily essentials and premium products. The company’s stock saw a surge as investors anticipate robust sales growth in the coming quarters.
4. ITC Ltd.
With a strong presence in the FMCG and hospitality sector, ITC Ltd. has emerged as a key beneficiary of the tax relief. Its diversified portfolio, ranging from packaged foods to personal care products, is expected to see increased demand.
5. Titan Company Ltd.
Luxury and lifestyle brands such as Titan, which dominates the jewelry and premium watch segments, also experienced a boost in share price. Higher disposable income means consumers are more likely to invest in high-end lifestyle products.
6. Jubilant FoodWorks Ltd.
The parent company of Domino’s Pizza and Dunkin’ Donuts in India, Jubilant FoodWorks is expected to see a surge in demand as eating out and quick-service restaurant consumption rise with increased disposable income. The stock has already seen a strong upward movement post-budget.
7. Nestlé India Ltd.
A leader in the packaged food sector, Nestlé India stands to gain from increased demand for branded food products. The company’s stocks have reacted positively to the budget announcement.
Market Outlook Post-Budget 2025
The broader market has reacted positively to the tax relief measures, with the Nifty FMCG index and consumer discretionary stocks witnessing sharp gains. Analysts predict that the trend will continue in the near term as consumer sentiment remains strong. Additionally, financial experts believe that higher savings due to reduced tax burdens could further fuel investments in equity markets, strengthening the overall economic outlook.
Conclusion
The government’s decision to raise the tax exemption limit has been a game-changer for the stock market, especially for consumption-driven sectors. Investors are optimistic that increased consumer spending will drive growth, making FMCG, retail, and discretionary spending stocks attractive bets in the coming months. With this policy boost, the Indian stock market looks poised for sustained momentum in the post-budget period.
