Anil Singhvi Market Strategy on Budget 2025 Day, Feb 1: Market guru shares key things to track & stock picks today
Anil Singhvi Budget 2025 Day Market Strategy: With all eyes on Finance Minister Nirmala Sitharaman's Union Budget for 2025-26 today, here is an overview of how Zee Business Managing Editor Anil Singhvi views Dalal Street and what suggests investors and traders do in the special session on February 1.
Anil Singhvi Market Strategy, Union Budget 2025: With just a couple of hours left before Finance Minister Nirmala Sitharaman presents the Budget 2025, Zee Business Managing Editor Anil Singhvi shares his insights on Dalal Street and the potential implications of major announcements on the economy and investors. According to the market wizard, the Budget's success hinges on three crucial factors: whether the fiscal deficit target is ambitious or overly cautious, whether the middle class remains a priority, and whether tax relief is extended to all—including investors.
Here is how market guru Anil Singhvi views the incoming Budget:
Market Wizard Anil Singhvi Shares Pre-Budget D-Street Strategy
The market wizard expects strong support for the headline Nifty 50 index at 23,250-23,350 levels and higher levels in the 23,575-23,700 zone.
For the Nifty bank, he expects strong support at 49,050-49,300 levels and a higher range in the 49,825-50,000 zone.
Anil Singhvi on What Will Make Budget 2025 a Bad Union Budget
Here are the key points the market guru has highlighted:
- Fiscal deficit below 5% of GDP this financial year
- FY26 fiscal deficit target at 4.5%
- Tax relief for middle class
- Tax relief for even those falling in the higher income tax rate category; this will boost consumption
- A raise in capex to Rs 11.5-12 lakh crore
- No more tax hikes for stock market and other investments
- A reduction in the LTCG tax (a hike was announced in the last Budget)
- Relief in securities transaction tax (STT)
- Schemes aimed at creating jobs and boosting manufacturing
- A Budget attracting wealth & prosperity for everyone, in line with PM Narendra Modi's remarks on Budget Eve
Anil Singhvi on What Will Make Budget 2025 a Bad Union Budget
Here are the key points the market guru has highlighted:
- Difficulty in meeting the fiscal deficit goal
- Complacency in spending on capex and infrastructure
- No tax relief for the middle class
- No measures to boost consumption and economic growth
- Higher taxes on the stock market and other investment avenues
- Populist measures denting a hole in the government's coffers
What Will Be the Focus Areas of Budget 2025?
Heart says 'it will be good'
Mind says 'don't be too optimistic'
Infrastructure, road, water irrigation and textiles to remain in focus
Luxury items can attract higher taxes
FII and Market Position Before Budget 2025
Few expectations, absence of bad news will suffice
Budget is bulls' last hope in the current phase
FIIs are off (Saturday)
FII's junior operatives will be in action
A big market reaction expected on Monday as well
What to Do During Budget Speech & Afterwards?
Be cautious if Finance Minister makes populist announcements in the beginning of the speech
Populist measure in the beginning may be a sign of higher taxes somewhere in Budget 2025
There is a low possibility of Budget 2025 raising income tax
Liquor, petrol & diesel, cigarettes, luxury items may attract higher taxes
ITC to be in focus
Cigarettes may attract a 5% hike in taxes
Nifty50 has crossed 22,800 in a good sign
Nifty50 may find support at 22,500-22,800 in case there is no major good or bad announcement
A good Budget may take Nifty 50 to 24,000-24,200 levels
Market Wizard Anil Singhvi's Big Budget Idea
Domestic investors should get some tax concession on new SIPs
For instance, an annual threshold of up to Rs 3 lakh on Rs 10,000-25,000 monthly SIPs
Such a measure will address the economy capital needs
Anil Singhvi’s Budget Pick: Cipla Set for Strong Growth
Anil Singhvi praises Cipla for its strong Q3FY25 results, highlighting record margins of 28%, robust free cash flow, and a focus on improving operational performance. In the run-up to the Budget presentation, he anticipates significant growth from upcoming launches, acquisitions, and innovation, suggesting investors shift from midcap to largecap pharma stocks like Cipla and consider SIPs on a 10% dip.
Anil Singhvi’s Budget Pick: Union Bank Eyes Strong Upside
Anil Singhvi says the PSU bank has delivered better-than-expected Q3 results, focusing on improving its balance sheet with controlled NPAs below 4% and slippages under the Rs 11,500 crore guidance for March 2025. In the run-up to the Budget presentation, he highlights the bank’s lower exposure to credit cards and MFI loans, while RBI’s liquidity increase and a potential interest rate cut could benefit Union Bank. The stock has recovered well after a decline, and he recommends an SIP on every 10% dip. With a CMP of Rs 105, Singhvi has set share price targets at Rs 130, Rs 160, and Rs 185, with an investment horizon of 1-3 years.