Union Budget 2026: Expectations, LTCG Relief Buzz
As India approaches Union Budget 2026, market expectations are focused on growth continuity, tax stability and investor confidence. The budget, to be presented by Nirmala Sitharaman, is expected to remain reform-oriented rather than populist.
What’s the Market Talking About
The Street expects a continued capex push in infrastructure, railways, defence and power, as these sectors have driven economic momentum. Alongside this, there is strong demand for income tax relief for the middle class, simpler compliance and clarity on market-related taxes. Manufacturing, MSMEs and Make in India remain key themes.
LTCG Relief: What Is Being Expected
One of the biggest investor discussions is around Long-Term Capital Gains (LTCG) tax. While a sharp rate cut looks unlikely, markets are expecting incremental relief, such as:
Increase in LTCG exemption limit beyond the current ₹1.25 lakh
Simplification of capital gains rules
No increase in equity-related taxes or transaction levies
Any positive move on LTCG could significantly improve long-term equity sentiment.
What the Budget Should Ideally Deliver
A balance between fiscal discipline and growth support is key. Priority areas include sustained infrastructure spending, tax simplification, MSME credit support, and higher allocation to renewable energy and EV ecosystem.
Sectors & Stocks to Focus On
If expectations materialise, attention may remain on:
Infrastructure & Capital Goods: