Budget holds promise for retail investors: Shripal Shah, Kotak Securities CEO
Budget, set to be presented on February 1, retail investors and industry stakeholders are hopeful of consumer relief and market-friendly reforms. Anticipation is building around potential tax breaks for lower-income groups and adjustments to capital gains taxes — measures that experts believe could boost consumption, revive urban demand, and reinvigorate the stock market.
Shripal Shah, MD & CEO of Kotak Securities, highlighted key measures that could shape the economic and market landscape. “The upcoming Budget holds promise for retail investors, particularly with expectations of tax relief in the lower income slabs. If the government reduces tax rates for smaller taxpayers, it could lead to higher disposable income in the hands of the common man,” Shah said.
This increase in purchasing power as a result of anticipated tax relief in the lower-income slabs has the potential to boost consumption, indirectly benefiting the stock market by spurring growth in consumer-driven sectors, Shah added.
In addition to tax reforms, Shah suggested that adjustments in capital market policies could also significantly impact investor sentiment and said, “from a capital market perspective, we also hope for measures to improve sentiment in the wake of current macroeconomic challenges.”
“A reduction or moderation in capital gains tax or Securities Transaction Tax (STT) would support domestic retail participation and make Indian equities more attractive to foreign investors. Such measures could counteract FII outflows, stabilize the
