{"id":10397,"date":"2025-02-07T13:00:39","date_gmt":"2025-02-07T07:30:39","guid":{"rendered":"http:\/\/43.205.138.160\/?post_type=article&p=10397"},"modified":"2025-02-07T15:39:40","modified_gmt":"2025-02-07T10:09:40","slug":"5-reasons-why-the-stock-market-hasnt-rallied-in-response-to-the-tax-reliefs-in-the-budget-%e2%ac%87%ef%b8%8f","status":"publish","type":"article","link":"https:\/\/signalz.pro\/article\/5-reasons-why-the-stock-market-hasnt-rallied-in-response-to-the-tax-reliefs-in-the-budget-%e2%ac%87%ef%b8%8f\/","title":{"rendered":"5 reasons why the stock market hasn’t rallied in response to the tax reliefs in the budget \u2b07\ufe0f"},"content":{"rendered":"

The government raised the income tax exemption limit to \u20b912 lakh from \u20b97 lakh. A big relief for the middle class. More money in hand should mean more spending, right?<\/p>\n

Markets didn\u2019t think so. The rally was short-lived. Here\u2019s why:<\/p>\n

1. Valuations are already high \u2013 66% of sectors are trading at a premium to historical averages. Even after corrections. Investors aren\u2019t jumping in blindly.<\/p>\n

2. Consumption boost is selective \u2013 People spend more on fashion, travel, and electronics, not essentials. That\u2019s why FMCG stocks fizzled out while consumer durables held gains.<\/p>\n

3. Premiumization is rising \u2013 People want better, not more. Nestl\u00e9 sees a \u20b97,500 crore opportunity, but mass consumption isn\u2019t booming.<\/p>\n

4. Credit demand is rising \u2013 NBFCs like Bajaj Finance (+9% in 5 days) and SBI Cards (+5%) are benefiting. But a broad-based rally? Not yet.<\/p>\n

5. Earnings are weak \u2013 Nifty-50 is expected to grow EPS by just 5% in FY25. Weak earnings, weak market confidence.<\/p>\n

The budget was a good step. But for the market, it\u2019s wait and watch.<\/p>\n

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I am on a mission to provide solid, research-backed investment advice to 1 lakh retail investors who are often misled in the markets by the big players with ulterior motives. Visit my website to know more.<\/p>\n","protected":false},"template":"","article-category":[35],"article-tags":[509,235,129,127],"class_list":["post-10397","article","type-article","status-publish","hentry","article-category-learn","article-tags-budget","article-tags-nifty50","article-tags-stock-market-tips","article-tags-successful-investing"],"acf":[],"_links":{"self":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/article\/10397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/article"}],"about":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/types\/article"}],"wp:attachment":[{"href":"https:\/\/signalz.pro\/api\/wp\/v2\/media?parent=10397"}],"wp:term":[{"taxonomy":"article-category","embeddable":true,"href":"https:\/\/signalz.pro\/api\/wp\/v2\/article-category?post=10397"},{"taxonomy":"article-tags","embeddable":true,"href":"https:\/\/signalz.pro\/api\/wp\/v2\/article-tags?post=10397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}