Budget 2026: Muted Expectations, Fiscal Path & Bond Market Key for Stocks, says Axis AMC CIO
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CNBC TV18•29-01-2026, 12:15
Budget 2026: Muted Expectations, Fiscal Path & Bond Market Key for Stocks, says Axis AMC CIO
- •Axis AMC CIO Ashish Gupta states market expectations for Union Budget 2026 are low, emphasizing fiscal discipline over new announcements.
- •Gupta highlights that government has already implemented significant measures outside the Budget, limiting scope for major new policies.
- •Investors will focus on fiscal consolidation plans, especially after a recent bond market sell-off, seeking comfort on bond supply and yields.
- •Stability in tax policy, including capital gains and withholding tax review, is crucial for attracting debt flows back to India.
- •Equity markets benefit from lower fiscal deficit, supporting reduced borrowing costs and improved credit growth; corporate earnings outlook in India has improved.
Why It Matters: Budget 2026 expectations are low; fiscal discipline, bond market stability, and tax policy are key for Indian stocks.
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