Budget 2025 Impact on Stock Market, Gold Rate, Agriculture, Healthcare & MSMEs

The Union Budget 2025-2026 introduces transformative reforms across multiple sectors with a primary focus on driving economic growth, enhancing productivity, and fostering sustainability across multiple industries. These initiatives are expected to significantly impact market dynamics, influencing both stock market trends and mutual fund investment strategies. By providing sector-specific support, the government aims to address long-term challenges and create a favorable environment for private sector investments.

Budget 2025 Impact on Agriculture & Rural Development 

In the Agriculture & Rural Development sector, strategic initiatives such as Prime Minister Dhan-Dhaanya Krishi Yojana aim to bolster agricultural output by improving productivity, diversifying crops, and developing robust post-harvest infrastructure. Additionally, the focus on making India self-sufficient in pulses through Mission for Aatmanirbharta in Pulses and enhancing seed quality with the National Mission on High Yielding Seeds aims to ensure sustainable farming practices. 

Impact on Stocks

Rural income and consumption will rise, benefiting agriculture-related stocks like: 

• UPL
• PI Industries 
• Coromandel International 

Rural-focused FMCG companies are expected to see higher demand, especially as farmer incomes improve, which include:

• HUL 
• Dabur 
• Britannia

Budget 2025 Impact on MSMEs & Startups 

The MSMEs & Startups sector benefits from an expanded credit framework, with the government raising the investment and turnover limits for MSMEs, allowing more businesses to access MSME-related benefits. The introduction of a Credit Guarantee Cover to facilitate easier access to credit for micro and small enterprises further bolsters growth. The creation of a Fund of Funds for Startups, which includes a ₹10,000 crore allocation, is designed to fuel the growth of emerging startups, especially first-time entrepreneurs, with a particular focus on women and SC/ST groups. 

Impact on Market

MSME-focused non-banking financial companies (NBFCs) such as the following will see increased demand for credit: 

• Bajaj Finance 
• L&T Finance
• Small and mid-cap companies

Investors may look to mutual funds focusing on small-cap and mid-cap stocks, such as: 

• Invesco India Small Cap Fund 
• HDFC Mid-Cap Opportunities Fund

Budget 2025 Impact on Infrastructure & Capital Expenditure 

In Infrastructure & Capital Expenditure, the government’s ₹10 lakh crore infrastructure push includes the launch of a Public-Private Partnership (PPP) framework for infrastructure projects and a robust asset monetization strategy targeting ₹10 lakh crore by 2030. This is complemented by the Jal Jeevan Mission and a ₹1 lakh crore allocation for urban development projects. 

Impact on Market

Construction and engineering companies such as the following will benefit from increased infrastructure spending: 

• L&T 
• KEC International 
• NCC 
• UltraTech Cement 
• Siemens 
• ABB India  

Infrastructure-focused mutual funds, such as the following could see substantial inflows as investors capitalize on the government’s spending initiatives:

• ICICI Prudential Infrastructure Fund 
• SBI Infrastructure Fund

Budget 2025 Impact on Energy & Power 

The Energy & Power sector is set to benefit from the government’s focus on sustainable energy sources. The Nuclear Energy Mission aims to generate 100 GW of nuclear power by 2047, positioning nuclear energy as a key component of the national energy mix. 

Impact on Market

The push for electric vehicle (EV) infrastructure will create long-term growth opportunities for companies in the renewable energy space like: 

• Adani Green 
• Suzlon Energy 
• Tata Power
• Exide Industries
• Tata Motors 

Investors may find opportunities in mutual funds focused on clean energy or electric vehicles, such as: 

• Tata Resources & Energy Fund 
• SBI Energy Opportunities Fund

Budget 2025 Impact on Financial Sector 

The Financial Sector receives a significant boost with the increase in the FDI limit in insurance from 74% to 100%, paving the way for more foreign investments in the sector. This is likely to attract greater capital inflows into large insurance companies like LIC, HDFC Life, and ICICI Prudential Life. Additionally, the introduction of a Credit Enhancement Facility aims to support the corporate bond market, particularly in the infrastructure sector. 

Impact on Market

Financial institutions, including private sector banks and NBFCs such as the follows stand to benefit from improved credit availability and streamlined processes: 

• HDFC Bank 
• ICICI Bank 
• Bajaj Finance

Investment funds focused on banking and financial services, such as are likely to attract increased capital from investors:

• Nippon India Banking Fund  
• SBI Banking & Financial Services Fund

Budget 2025 Impact on Healthcare & Pharmaceuticals 

The Healthcare & Pharmaceuticals sector stands to gain from the government’s focus on expanding access to healthcare services. Key reforms include the establishment of Day Care Cancer Centres in district hospitals to enhance cancer care accessibility, and customs duty exemptions for 36 lifesaving drugs to reduce the cost of critical medications. 

Impact on Market

Pharmaceutical companies such as the follows are expected to see revenue growth due to these measures:

• Sun Pharma 
• Dr. Reddy’s Labs 
• Cipla  
• Apollo Hospitals 
• Fortis Healthcare

Healthcare-focused mutual funds are poised to benefit from these policy changes, such as:

• SBI Healthcare Opportunities Fund 
• Tata India Pharma & Healthcare Fund

Budget 2025 Impact on Technology & Innovation 

In the Technology & Innovation sector, the creation of a Centre of Excellence in AI for Education and the establishment of a Deep Tech Fund of Funds demonstrate the government’s commitment to fostering cutting-edge technological innovation. 

Impact on Market

Leading IT services companies are likely to benefit from increased demand for AI and deep tech solutions, while the EdTech startups will benefit from the integration of AI into education, which include:

• TCS 
• Infosys 
• Wipro 
• UpGrad 

Technology-focused mutual funds are expected to see increased investor interest as AI and deep tech companies expand, including:

• Aditya Birla Sun Life Digital India Fund 
• Tata Digital India Fund

Budget 2025 Impact on Tourism & Hospitality 

The Tourism & Hospitality sector will be supported through initiatives like the development of 50 tourist destinations and streamlined e-visa facilities, which will likely boost inbound tourism. 

Impact on Market

Hospitality companies and travel firms are well-positioned to benefit from the expected uptick in international tourists., such as:

• Hotels (Taj Group) 
• EIH (Oberoi Group) 
• MakeMyTrip 
• Thomas Cook

Thematic funds targeting tourism and hospitality sectors are likely to see positive returns as the sector recovers and expands.

The Union Budget 2025-2026 introduces policies designed to promote long-term growth and sustainability in critical sectors such as agriculture, infrastructure, energy, healthcare, and technology. By aligning with these growth themes, investors can potentially benefit from rising opportunities in the stock market and mutual funds. Sectors like infrastructure, clean energy, FMCG, and financials are expected to outperform, providing lucrative options for investors seeking exposure to India’s evolving economic landscape.