Since the Union Budget 2025 turned out to be a mixed bag of positives and negatives, Rohit Srivastava, founder of Indiacharts.com feels it is unlikely to pull the market out of its current phase of consolidation. That said, Srivastava predicts the market to consolidate another week as investors digest the budget announcements, before it eventually moves towards higher levels.
The market sentiment remains divided, sparking sector-specific gains instead of a broad-based rally, driven by how capital allocations have been distributed. Sectors that saw increased capital allocations moved higher, while those that saw reduced flows fell out of favour, Srivastava explained.
On of the prominent sectors that hopped on the limelight today was the FMCG pack, which also happens to be one of the hardest hit when the market peaked in September. Given that many of these stocks are yet to recover their losses, Srivastava sees the scope for more upside in these counters.
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"From a short-term trading perspective, February still holds upside potential for these segments. However, for the broader market, the Nifty has hit resistance near 23,500-23,600 and may consolidate before breaking out. While a move toward 24,000 appears likely in the weeks ahead, it could take time to materialise," he added.
Consumer stocks enjoyed favourable budget measures, fuelling hopes of increased disposable income boosting consumptions. "Secondary effects will also come into play, but another crucial area --capital expenditure and infrastructure has seen less discussion," Srivastava said.
Government-driven investments in this sector have slowed, with growth in spending declining from 30 percent two years ago to 10 percent last year and now down to 8-9 percent this year. This has tempered expectations for overall growth in these segments, ultimately, souring sentiment for these sectors.
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