“Markets did not rise because …”: The founder of Hakma Hattish, where the markets ignore the tax reductions of the budget

Despite the Federation’s 2025-26 budget, which announces a large tax reduction of the middle class, the flat markets have closed, pushing sharp reactions from analysts, including the founder of the Hattish Hells of Sriffastava.

In his evaluation, Sharfastava did not win the words: “The markets did not rise despite the declaration of tax cuts. Why? This special tax reduction is a popular step, not a reasonable economic step. This does not solve the problem of growth; it simply solves the problem of popularity.”

The budget of the Finance Minister Nermalla Setharmann gave the annual income of 12 rupees of the income tax under the new system, along with the exciting tax panels to provide relief to the middle class.

While this advertisement was expected to strengthen the feelings of investors, the market’s reaction was lukewarm – Sensex 5 points only to 77,506, while NIFTy fell 26 points to 23,482 points.

Shrivastava argued that the tax reduction, despite its impact on individuals, lacks the depth of the impact on broader economic growth or investor confidence. He said: “It gives the feeling that at least” something “is done to the middle class,” which indicates that the step is more symbolic than the strategy.

Driving the numbers, the most prominent Shrivastava is a major issue in the tax structure of India. He pointed out that approximately 6.5 % of income tax declarations in files in the country, but only about 2 % of the population actually ends in payment of income tax. With the advertisement of new tax cuts in the budget 2025-26, this number is expected to decrease further, leaving only 1 % of the population pay taxes effectively.

He added: “This does not build any kind of investor confidence,” which implicitly means that the shrinking tax base can constitute financial challenges with little to stimulate economic growth in the long term.

Market experts chanted similar feelings. Vinod Nair, Geojit Financial Services, noted that the mixed market response was due to a modest increase of 10 % on an annual basis in capital spending for the fiscal year 26-which is less than expectations, especially in sectors such as railways, defense and infrastructure. “The consumption -based sectors, which are expected to benefit more than others, had a low effect on the wide market because of its modest situation on the market,” Nair explained.

Meanwhile, Ajit Mishra, SVP Research in Broking Religare, suggested that although the budget effect may be probably, the markets are likely to remain linked to the range as the participants are waiting for more clear signals. He said: “NIFTY may remain around its current levels as the market participants are waiting for the next decisive step,” noting the technical resistance near the level of 22,620.