FIIs may make a comeback this year, says investor Madhusudan Kela

The central government offered a big stimulus for middle class households in the Union Budget 2025-26 by ensuring that those who earn up to Rs 12 lakh would not have pay any income tax in the new tax regime. This is expected to boost consumption and, hence, lead to a revival in corporate investment, which has remained tepid in recent years. The tax cut has turned the focus to stocks of companies in the consumption space. These companies had faced a demand slowdown, first in rural areas and then even in urban areas. Now, they are expected to see an increase in demand. As a result, their stocks could perform well on the markets.