These equities have also profited from the nature of India’s economic recovery, which has been powered by commodity price increases, the investment cycle, construction, exports, and pent-up discretionary demand.

According to the firm, “on the basis of investing approach, mid/small caps have emerged as resilient outperformers.”

The brokerage ascribed midcaps and smallcaps’ resilience to the valuation gap that established with largecaps during the first phase of outperformance following March 2020.

It went on to suggest that the post-COVID growth spurt was primarily coming from small and midcap companies.

The budget 2023-24 declared a tax refund in which no tax would be charged on persons with yearly incomes of up to 7 lakh under the new tax system. Experts interpreted the decision as a drive for salaried taxpayers to migrate to a new tax structure that provides no deductions for investments.

No tax will be paid on income up to Rs 3 lakh under the redesigned new tax regime. Income between 3-6 lakh will be taxed at 5%, 6-9 lakh at 10%, 9-12 lakh at 15%, 12-15 lakh at 20%, and 15 lakh and beyond at 30%. In addition, the new system allows for a 50,000 standard deduction.

Now, the government has made changes to the Finance Bill 2023, providing marginal relief’ to taxpayers earning less than Rs 7 lakh per year.

Although the government has not established the income level that would be eligible for marginal relief, tax experts estimate that individual taxpayers with an income of $7,27,777 would benefit from this relief.