FM Sitharaman's Budget 2024 boosts consumer durables sector
Finance Minister Nirmala Sitharaman allocated a significant amount of capital for rural development, Agriculture and allied sectors which has potential to boost rural and urban consumption.
The Government of India’s focus on higher allocations for rural development, agriculture, and allied services, along with schemes for employment and skilling of youth, is expected to boost both rural and urban consumption for consumer products.
The budget also focuses on helping the middle class by providing tax relief, including a higher standard deduction of Rs 75,000 for salaried individuals and additional benefits under the new tax regime. This will boost consumer purchasing power as individuals will have more cash in hand.
The government's plan to provide 3 crore more houses under the PM Awas Yojana is expected to increase demand for basic large consumer durables. Efforts are also being made to make it easier to do business in the manufacturing sector.
New employment incentives across various sectors will encourage workforce growth and support the ‘Make in India’ initiative, complementing the existing PLI schemes.
As part of the Union Budget 2024, Finance Minister Nirmala Sitharaman has reduced import duties on components like compressors and semiconductors. This leads to lower production costs for the companies and makes the finished goods cheaper for consumers, boosting the overall demand.
Consumer Durables Performance Today
By the end of the trading session, Nifty Consumer durables closed at 38,545.40 points, making it the second-largest gainer after FMCG, with a 2.11 per cent increase from the previous close. The rise in the index was led by Rajesh Exports, Titan, Kajaria Ceramics, Kalyan Jewellers, Blue Star, V-Guard and others.
Rajesh Exports, Titan, Kalyan Jewellers, and other jewellery stocks part of the consumer durables sector were up after the finance minister announced a significant reduction in customs duties on gold, silver, and platinum.
Disclaimer: The article is for informational purposes only and not investment advice.