New Delhi, Jan 22 (SocialNews.XYZ) The Union Budget 2026 will maintain fiscal prudence and prioritise strategic, capex‑heavy sectors -- making defence sector the top beneficiary, a report said on Thursday.
The report from investing platform smallcase said that nearly 40 per cent of respondents flagged defence sector for higher allocations driven by indigenisation, modernisation, export potential and sustained government spending.
A pre‑budget survey of over 50 investment managers found that infrastructure ranked second at about 29 per cent, reflecting confidence in public capex and long‑term growth multipliers.
Equity managers reflected confidence in India’s medium-term equity outlook with a strong preference for capex-led sectors and expectations of short-term market volatility.
Majority of managers remained bullish on Indian equities over the medium term. Over 82 per cent expect the Nifty 50 to close FY27 above 25,000 and 43 per cent projected it in the 25,000–27,500 range, the report said.
Inflation expectations remain well-anchored, with more than 85 per cent projecting FY27 inflation in the 4–5 per cent or below 4 per cent range, the report said.
Manufacturing accounted for about 18 per cent of sectoral responses, supported by expectations of continued PLI-led policy support. Consumption and agriculture were cited by roughly 7 per cent each, , indicating expectations of targeted rather than broad-based support, the report said.
Nearly 80 per cent of managers anticipated near‑term market volatility around the Budget, , largely driven by event-based positioning, policy surprises, and global cues. Most expect volatility to be short‑lived as markets revert to fundamentals, the report said.
On taxation, the survey indicated expectations of incremental rather than sweeping relief. Most respondents cited limited scope for large corporate tax cuts, while targeted relief or simplification for salaried individuals is viewed as more likely.
Corporate taxes are more likely to see stability rather than cuts, with continued focus on capex-linked incentives and compliance, the report said.
Most respondents cited selective measures to support urban and rural demand, rather than broad fiscal stimulus, in line with the government’s fiscal discipline, the report noted.
—IANS
aar/na
Source: IANS
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