Budget 2026: Stock Market Eyes Growth Amid US Tariff Concerns

• Budget 2026, to be presented on February 1st, is highly anticipated by the stock market, especially under the shadow of US tariffs.
• Jaspreet Singh Arora expects 11-13% jump in capital expenditure, promoting industries like defense, electronics, AI, nuclear energy, and critical minerals through PLI schemes.
• Government aims to reduce debt-to-GDP to 50% by FY2031 and limit fiscal deficit to 4.4% of GDP, focusing on long-term economic health.
• Relief measures could include deregulation, ease of doing business, PSU disinvestment, and expansion of PLI schemes, with specific tax credits for MSMEs and export sectors.
• Despite near-term challenges like US tariffs, foreign investor sell-offs, and rupee depreciation, IT stocks present a buying opportunity due to improved valuations and AI-driven demand.

Why It Matters: Budget 2026 aims to boost economic growth and capital expenditure, offering opportunities despite market challenges.