Shares of food delivery platforms Swiggy and Zomato rose up to 7% on February 1 as Finance Minister Nirmala Sitharaman announced plans to cut personal income tax rates to boost middle-class spending power in Budget 2025.
In a major change in direct tax slabs, Sitharaman announced that no income tax will be payable on income of up to Rs 12 lakh.
On closing basis on February 1, Swiggy's shares closed 4.65% higher Rs 433 apiece. The shares of Zomato on BSE closed 7% higher at Rs 236 apiece as against day's low of Rs 215.6 apiece.
Sitharaman had also listed a few schemes for online platform workers and gig workers.
“Online platform workers or gig workers provide great dynamism to the new-age services economy. Our government will arrange for ID cards for them with registration on the e-Shram portal and give them health coverage. This will benefit 1 crore gig workers in the country,” said the Finance Minister.
The income tax relief led to a massive 4% surge in Nifty FMCG index with all its constituents rising up to 7%. On February 1, Trent shares rose 7% while those of Tata Consumer Products, ITC, and Asian Paints rose 4.6%, 3.4%, and 2.45%, respectively.
Jewellery shares also rose on February 1 as the Budget 2025 made a clear push towards consumption.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
