Budget 2026: Tax Reforms, Market Trends, and Investor Expectations Ahead of Feb 1

• Union Budget 2026-27 is scheduled for February 1, with focus on taxation and capital markets.
• Historically, domestic equity markets (Sensex, Nifty) show subdued performance one month before and after the Budget.
• Since 2014, 10 out of 14 Budgets saw negative returns in the month prior, and 7 in the month after.
• Key discussions revolve around personal income tax, with speculation on phasing out the old tax regime.
• Investors seek relief in capital markets taxation, specifically increasing the tax-free exemption limit for LTCG.

Why It Matters: Budget 2026 brings anticipation for tax reforms and capital market changes amidst historical market volatility.