Budget 2015: Private banks may outperform in the rally, says Ashwani Gujral
As far as the market is concerned, we remain in the 8500-9000 band and post further consolidation here, we should move higher slowly.
Updated:
By Ashwani Gujral
This budget introduces fiscal-policy loosening and ease of doing business. It lays down the contours of making society and governance transparent, besides the call for targeting subsidies. In sum, monetary and fiscal policy loosening plus ease of doing business should lead to a surge in corporate earnings and investments, which should manifest as an upward movement of the market.
Also, there is a concerted effort to kick-start investments by increasing public sector spending in infrastructure.
As far as the market is concerned, we remain in the 8500-9000 band and post further consolidation here, we should move higher slowly.
The long-term bull market continues and the Nifty is likely to cross 10000. Private banks are likely to outperform in the current leg of the rally. The good news is that the Budget has not damaged the good sentiment and should help in providing more flows to the market. Specific proposals are likely to help tourism, FMCG, private banks and entertainment.
This budget introduces fiscal-policy loosening and ease of doing business. It lays down the contours of making society and governance transparent, besides the call for targeting subsidies. In sum, monetary and fiscal policy loosening plus ease of doing business should lead to a surge in corporate earnings and investments, which should manifest as an upward movement of the market.
Also, there is a concerted effort to kick-start investments by increasing public sector spending in infrastructure.
As far as the market is concerned, we remain in the 8500-9000 band and post further consolidation here, we should move higher slowly.
The long-term bull market continues and the Nifty is likely to cross 10000. Private banks are likely to outperform in the current leg of the rally. The good news is that the Budget has not damaged the good sentiment and should help in providing more flows to the market. Specific proposals are likely to help tourism, FMCG, private banks and entertainment.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
PSU banks lose gold loan sourcing share as private banks, NBFCs gain traction: Report2026-06-23T10:05:24Z- Defence valuations 'obnoxious'; private banks look strong: Sandip Sabharwal's full market playbook2026-06-23T07:56:55Z
- NBFCs and private banks better positioned than PSU banks: Aman Chowhan2026-06-16T07:53:10Z
The limit of reduction of health insurance premium was enhanced from Rs 15,000 to Rs 25,000. For senior citizens this limit has been increased from Rs 20,000 to Rs 30,000.
"For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens," Jaitley said.
Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.
Jaitley also proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income-tax and any payment from the scheme shall not be liable to tax.
Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.
Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.
"For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens," Jaitley said.
Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.
Jaitley also proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income-tax and any payment from the scheme shall not be liable to tax.
Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.
Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.
ADVERTISEMENT
