Bajaj Broking in its pre-Budget note said Union Budget 2025 should ideally continue the trajectory of simplifying and rationalising taxes on capital market products. It said long-term capital gains tax, which was rationalised at 12.5 per cent in Budget 2024, can be reduced by 50—200 basis points to benefit investors. Likewise, reducing Securities Transaction Tax (STT) and simplifying provisions for Alternative Investment Funds (AIFs) will foster institutional investments, enhance market liquidity, and encourage foreign portfolio participation.
"Continuing in the same vein, simplifying tax rules for financial instruments, such as bonds, stocks, and derivatives, as well as for FPIs, would remove complexities and enhance the market’s attractiveness," it said.
The brokerage anticipates capital expenditure (capex) to see an increase, with a particular emphasis on key infrastructure sectors such as roads and highways, railways and defence. The government is likely to expand the scope of the Production-Linked Incentive (PLI) scheme to include new sectors, which would be a strategic move to further boost manufacturing and support economic growth, it said.
Stocks to buy Bajaj Broking has recommended three stocks to buy for 21-24 per cent potential gains over the next 12 months. They are Apeejay Surrendra Park Hotels Ltd (Park Hotel), DCX Systems Ltd and Ion Exchange (India) Ltd.
Bajaj Broking said Park Hotel is at the cusp of breakout above recent consolidation range after base formation above the recent trendline breakout area and 20-week EMA, thus, offers fresh entry opportunity. This brokearge expects the stock to head towards Rs 235 level in the coming year being the confluence of the previous all time high and measuring implication of the recent range (Rs 206-176). The buying range is Rs 190-200 apiece.
On DCX India, Bajaj Broking said the share price of DCX India is at the cusp of breaking above the 14-month range of Rs 390-280, signaling strength and continuation of the overall up trend. It sees the stock heading towards Rs 449 level in the coming quarters. This is the confluence of the previous major high and rising trendline resistance joining previous major highs. The brokerage suggested the buying range of Rs 355-380.
Ion Exchange (India) Ltd is in strong uptrend, forming higher high-low on the long-term chart. The stock has recently rebounded, taking support at the previous breakout area signaling a change of polarity.
"We expect the stock to head towards 780 levels in the coming year being the 123.6 per cent external retracement of the last decline (Rs 755-599)," Bajaj Broking said.