InvestorQ : Which stocks will be impacted the most if the Budget2020 is below expectations?
Gayatri Surendran made post

Which stocks will be impacted the most if the Budget2020 is below expectations?

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Neelam Naik answered.
1 year ago
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Clearly, the stock markets are expecting some very positive news flows from the budget in terms of a boost for consumption and for the rural sector. That is the reason, companies in the consumer finance space, consumption and FMCG space as well as stocks in the auto space have been gaining ground ahead of the budget. It is expected that a combination of a people friendly budget, bigger tax breaks and more spending on rural projects will give a boost to consumption.

However, it also needs to be remembered that the government revenues are likely to be extremely short of target with an Rs.2 lakh hole in terms of direct and indirect tax collections. There could be a scenario wherein the government may be constrained by resources to undertake big expenses. In that cases, these sectors like autos and FMCG will be the most disappointed by the Union budget.


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