ITC, Zomato, Trent, DMart: Consumption-linked stocks in focus on Budget 2025-26 announcements

In her eighth Budget speech, the FM announced that individuals earning up to ₹12 lakh annually will not have to pay income tax under the new tax regime. The move aims to boost consumption and spending, which has languished due to low wages and high inflation.

Finance Minister Nirmala Sitharaman said on Saturday that the government has put a "substantial amount of money" in the hands of people through the rejig of I-T slabs in the Budget. An additional 1 crore people will pay no tax due to a hike in the tax rebate to Rs 12 lakh per annum.

The 2025-26 Budget increases the tax rebate available to individual taxpayers to ₹12 lakh from the next fiscal year, up from ₹7 lakh currently.

"One crore more people will pay no income tax due to the hike in the rebate to ₹12 lakh," Sitharaman said at the post-budget press conference.

This move is likely to give a fillip to the economy, as it will see money flowing into multiple pockets of the economy.

Reacting to the announcements, consumption stocks surged on Saturday. They are expected to extend their gains on Monday as well.

The BSE Fast Moving Consumer Goods index ended at 21,152.76, up 597.49 points, or 2.91%, while the BSE AUTO index ended at 52,428.15, up 901.30 points, or 1.75%. Further, the BSE CONSUMER DURABLES index closed the session at 59,283.06, up 1,431.17 points, or 2.47%, and the BSE Consumer Discretionary index rallied to 9,441.87 levels, up 265.38 points, or 2.89%.

Blue Star ended at ₹2,057.85 on the BSE, up 13.17%.