Union Budget 2025 Impact On Cement, BFSI, Capital Goods, Metals, Mining And More— Read IDBI Capital's Analysis

The government has revised its capital expenditure target for FY25 down by 8% YoY. The revised target FY25 is Rs 10.18 lakh crore compared to original budgeted Rs 11.11 lakh crore. On the other hand, capex outlay for FY26 has been raised to Rs 11.2 lakh cr, which is higher than the previous year but still below industry expectations..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .IDBI Capital Report.With a focus on fiscal consolidation, the government has set a fiscal deficit target at 4.4% for FY26, compared to 4.8% in FY25, which was revised downward from the original target of 4.9%. This downward trend in the fiscal deficit is a positive indication of the government's commitment to fiscal consolidation. It suggests that central governments borrowings in FY26 will remain relatively stable, which could push bond yields lower. This creates favorable conditions for the private sector to borrow more at a reduced cost of capital, particularly at a time when private sector capex has been sluggish for various reasons. By strengthening fiscal stability, the government may also aim to improve its sovereign credit rating, potentially in FY26..Impact on BFSI and our view:The announcements on credit cards for micro enterprises remains positive for banks and key credit card players. Term loans to 5 lakh entrepreneurs, as well as revision in credit guarantee for MSMEs is positive for banking industry. Hike in FDI limit in the insurance sector will ensure deeper penetration and increased M&A activity in the sector. Key stock impacted: Large banks and MSME-focused mid cap banks like City Union Bank, credit card players like SBI Cards, and insurance companies..Click on the attachment to read the full report:.Union Budget 2025 Impact - Key Sector Analysis By Nirmal Bang.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Union Budget 2025 Impact On Cement, BFSI, Capital Goods, Metals, Mining And More— Read IDBI Capital's Analysis

BFSI, building material and more sectors sees positive impact of Budget 2025, while Capital Goods and few others can see 'Neutral' impact according to IDBI Capital.

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