Once the budget plan, which is expected to benefit the Indian Stock Titan and ITC the most from the 2024 budget, is completed, a more clear picture will emerge.

The current budget had more negative surprises than positive surprises for the stock market, but it was bright material for investors in specific stocks. According to analysts who track consumer-related stocks, ITC and Titan are expected to benefit from some of the measures announced in the budget.

Finance Minister Nirmala Sitaraman is on a budgetIt is proposed to reduce tariffs on gold and silver from 10% to 6%I did it. Also, since the 5% AIDC (Agriculture Infrastructure and Development Cess) remains unchanged, import tariffs on gold and silver have been reduced from 15% to 11%.

Macquarie pointed out that a reduction in gold tariffs should improve Titan's growth prospects. The broker factored in tariff cuts and raised FY26/27EPS for Rakesh Junghunwala stock by 1/ 2%.

Domestic broker Emkay Global has stated that the easing of gold prices associated with tariff cuts will stimulate customers who have taken a stand back as a result of a rise in gold prices.

Titan's first quarter may be moderate due to soaring gold prices, few wedding days, and election-related business issues, but the second half of this fiscal year is expected to be better due to lower tariffs and improvements in the business environment.

Since the shift of consumers to organizational divisions has accelerated and there is a high possibility that they will move away from local players, MK added that it is a strong basis for valuation reevaluation.

According to the old adage, news isn't good news. Changes, updates, and increases in excise taxes and NCCD (National Catastrophe Contingency Tariff) are not good news for the tobacco sector, particularly India's biggest players: it's especially good news for India's largest company, ITC.

Morgan Stanley said the current budget has allayed one of the major concerns about raising tobacco taxes. ITC is in a very good position for sustainable growth, and business fundamentals are solid. According to the broker, ITC is likely to be re-rated.

Jeffries India upgraded ITC to a “buy,” raised its target share price to 585 rupees per share, and predicted a 25% increase. The last tobacco tax increase was 2% in February 2023. This stability allows ITC to focus on sales volume with minimal price increases, Jeffries said.

Furthermore, the securities companyGST tax will remain stable until 2026/3It was anticipated, and it was pointed out that this was for the central government to settle state contributions. Improved demand in the staple food sector will benefit ITC's main business. The 2025/2 budget has an important meaning, but this year's slight price increase will pave the way for next year.

Since approximately 90% of tobacco tax will be used to repay loans from the state under the GST system (GST tax rate 28% + compensation settlement) until 2026/3, tax system stability will be ensured for the next 12 to 18 months.

Furthermore, the fact that the outlook for the consumer goods sector is improving will also have a positive effect on ITC.