Budget 2026 Preview
The upcoming Budget 2026, scheduled for February 1st, has generated significant anticipation within the Indian economy. Various sectors, including auto,
real estate, and taxation, are keenly awaiting the budget's announcements. Economic experts anticipate that the government may aim to limit the fiscal deficit to 4.3%, while simultaneously focusing on medium-term debt consolidation. The event will see both the BSE and NSE remain operational for live stock trading, indicating the importance of the event to the financial market.
Market Reactions & Trends
Simultaneously, the market has seen notable shifts. Stock markets experienced a downturn, with the Sensex falling over 1,400 points and the Nifty 50 dipping below 25,200 points in just two days. This decline has prompted analysts to evaluate the situation, providing guidance to investors. Within the precious metals market, gold and silver continue to rise, with silver prices surpassing Rs 3 lakh. Hindustan Zinc shares also saw a surge, mirroring the positive sentiment. In the real estate sector, there's a stabilization in Q4 2025. Capital inflows in the real estate sector jumped to a record $14.3 billion in 2025. Experts foresee a significant rise in office occupancy in Delhi-NCR, potentially exceeding 80% by 2027, illustrating a robust outlook for the commercial property segment.
Sectoral Expectations
Expectations from the auto sector include EV incentives and clarity on GST 2.0-related measures, while the real estate sector is calling for tax relief and policy stability. The auto industry seeks measures such as electric vehicle incentives and clearer guidelines following the implementation of GST 2.0. The real estate sector, on the other hand, is pushing for tax benefits and stable regulatory policies to boost confidence. These expectations highlight the critical need for supportive policies to foster growth and address sector-specific challenges. Further, Budget 2026 is anticipated to explore joint tax filing for married couples.
Investment Strategies
Investors are carefully observing market dynamics and strategizing accordingly. Silver ETFs have increased by 8% as prices hit record highs. The question for investors is whether to secure profits or maintain their investments. Similarly, analysts are evaluating the market's trajectory, offering counsel on potential short-term recoveries. The performance of railway stocks is also under scrutiny. Experts are highlighting top picks in anticipation of Budget 2026. The rising prices of precious metals, especially silver, is impacting investment decisions. With the price hitting Rs 3 lakh, investors are watching the market closely.
Income Tax Reforms
Taxpayers and experts are watching for potential changes to the income tax regime. Experts seek higher deductions and relief in the 30% slab, alongside capital gains tax modifications. A key focus is whether the government will phase out the old tax regime. Amidst the anticipation, experts are pushing for tax clarity and a faster dispute resolution mechanism to simplify doing business. The government has also stated that a new income tax system would be put into effect from April 1 to streamline tax procedures.
