Look, who gained and who lost in the first full Budget of Modi 3.0 | Stock Market News

The Narendra Modi government announced tax cuts for the middle class in today’s Union Budget, putting about $12 billion more in their pockets, to spur consumption spending.

Indians with an annual income of up to ₹12 lakh will effectively be exempt from paying income tax now as Finance Minister (FM) Nirmala Sitharaman in her budget speech on Saturday raised the cap from ₹7 lakh. FM also announced tweaks in the tax slabs.

All these tax-related changes are likely to result in the government forgoing ₹1 lakh crore in tax revenue, Sithraman said, spotlighting the quantum of extra income that’ll be left in the hands of Indian households, a Bloomberg report said.

The budget aims to uplift household sentiment, enhance the spending power of India’s rising middle class and boost private investment to “unlock greater prosperity,” Sitharaman said at the start of the speech.

The double whammy of falling wages and rising prices has hit Indians, with economic growth entering a slugging phase. The announcements show the revised priority of the government as allocation for infrastructure spending was nearly flat at ₹11.21 billion over the estimates in the full budget last year.

Here are the key winners and losers from budget 2025, according to a Bloomberg report:

WINNERS

Consumption

Tax sops announced by Sitharaman, aimed to tackle the consumption slowdown in the world’s most populous nation, cheered the stocks of India’s consumer-facing firms.

The 77-member BSE Fast Moving Consumer Goods Index, which includes hotels, cookie makers to school supply makers rose the most since June.

Insurance Sector

The government raised the foreign direct investment limit to 100% in the sector from 74% currently.

“This move is likely to attract substantial foreign capital while also fostering innovation and improving service quality through technological advancements. As a result, global insurance companies can now invest fully, and we anticipate the emergence of innovative products and services tailored to meet the diverse needs of Indian consumers,” said Sharad Mathur, Managing Director and CEO, Universal Sompo General Insurance.

Agriculture

The government will provide credit to 17 million farmers. It also introduced a six-year plan to make India self-reliant in pulses. Stocks like Kaveri Seeds Co. and Godrej Agrovet went up after the announcement.

The finance minister also said a new board will be created for fox nuts, which are considered a superfood, in Bihar. Additionally, a new fertilizer plant will be built in Assam.

Startups

The Modi government has planned a ₹100 billion fund for startups to boost entrepreneurship in the country.

Manufacturing

The budget aims to make the country a global manufacturing hub of toys, and announced measures focused on small and medium businesses, calling them a second engine for growth in the country. Footwear makers including Relaxo rose after the government announced a policy to boost production in the sector.

Nuclear Power

Finance Minister Sitharaman said that India will amend its Atomic Energy Act, paving way for private investment in nuclear power projects, and also tweak the Civil Liability for Nuclear Damage Act that has held back investments in the sector.

She also outlined plans to boost nuclear power by over 12-fold to 100 GW by 2047, which will help nuclear gear makers like BHEL, Walchandnagar Industries.

LOSERS

Infrastructure

Construction stocks like Larsen and Toubro and railway stocks like Indian Railway Finance Corporations were among the biggest underperformers in the Nifty 100 index as the increase in capex fell short of expectations.

Cement makers like UltraTech, Ambuja and ACC were among the firms trading down as their fortunes are closely linked to infrastructure projects, Bloomberg reported.

Refineries

Shares of oil market companies, including Hindustan Petroleum Corporation Ltd. (HPCL), Bharat Petroleum Corporation Ltd. (BPCL), and Indian Oil Corporation Ltd. (IOC), declined after the Budget documents indicated that LPG subsidy for the financial year 2026 was decreased to ₹12,100 crore for 2026 from 14,700 crore in financial year 2025.

Fertilizer Firms

The government announced a reduction on fertilizer subsidy to ₹1.68 trillion, which sent shares of National Fertilizers Ltd., Rashtriya Chemicals & Fertilizers Ltd., Chambal Fertilisers and Chemicals Ltd tumbling.

Health Care

Lack of measures to boost health care spending by India’s government sent drugmakers shares lower. The country is among the lowest spenders on healthcare globally at about 3.3% of its GDP. This compares with about 5.4% in China and about 16% in the US, according to latest data from the World Bank, a Bloomberg report showed.

(With inputs from Bloomberg)