Which announcements in Budget 2026 can keep the stock market positive?

Updated: 14-01-2026, 04.53 PM

What is the news?

Union Finance Minister Nirmala Sitharaman will present the country’s general budget on 1 February next month. This budget will be for the financial year 2026-27 and will be his ninth consecutive budget. Everyone’s eyes are fixed on the budget, from common people to businessmen and investors. There is less hope for tax changes this time, but on which sectors the government increases expenditure, it can play an important role in determining the pace of the country’s economy and the times to come.

government spending

Market can get support from government spending

In this budget, the central government can pay a lot of attention to important sectors like infrastructure, roads, railways, housing and manufacturing. If government expenditure increases in all these sectors, then companies will get new projects and employment opportunities will also be created. Such decisions are generally considered positive for the stock market, because it accelerates economic activities and gradually strengthens investor confidence.

Investment related rules can provide relief

There is little hope of major relief in income tax, but changes in some rules related to investment are possible. If the government gives some relief on taxes related to the stock market, such as transaction tax or tax on long-term investments, then investors may become more active. Such small but important changes can also help in taking the market environment in a positive direction.

Expectations pinned on long-term growth

This budget may not bring a big jump in the stock market immediately, but its decisions can prove to be very important in the long run. If the government focuses on all stable policies, increasing exports, supporting industries and creating employment, it will strengthen the country’s economy. Investors consider such a budget to be reliable for the future, which provides gradual and steady support to the market.