Top stocks for 2024 ahead of first Union Budget Modi 3.0: Financial experts

As expectations for the Union Budget 2024-25 build, the Indian stock market continues its uptrend, hitting new highs on the back of strong investor confidence and favourable economic indicators. In light of the upcoming Budget, financial experts have highlighted key stocks that are set to benefit from the government’s anticipated policies and sectoral growth.

Market prospects

The Indian market is currently in a strong rally, with frequent milestones and new record highs. On June 27, the benchmark Nifty index crossed the 24,000-mark for the first time, having hit a record high of 24,174 on June 28. The surge reflects growing investor optimism, buoyed by positive economic signals, policy stability and increased foreign investment.

Key stock recommendations

Leading financial analysts have identified several stocks that will outperform the EU budget significantly. Here are the most popular types from different sectors:

Infrastructure and Defense

1. Larsen & Toubro Ltd (L&T)

Current Market Price (CMP): ₹3,605.85

Goal: £4,300

Potential growth: 19%

Rationale: With an expected allocation of ₹ 11,11,111 crore for infrastructure, L&T will benefit significantly. The company has forecast a 10% growth in order inflow and is targeting group revenue of Rs 2.7 lakh crore in 2025-26 at an EBITDA margin of 8.25%.

2. Hindustan Aeronautics Ltd (HAL)

CMP: ₹5,283

Goal: £5,819

Potential increase: 10%

Rationale: HAL, a major player in the defence sector, is expected to benefit from the Rs 6.22 lakh crore defence budget. The company has a large order book of Rs 94,000 crore, ensuring solid future revenues.

3. Titagarh Rail Systems Ltd

CMP: ₹1,767

Goal: 2030 pounds

Potential upside: 15%

Rationale: Being a leader in manufacturing of railway rolling stock, Titagarh will benefit from the government’s allocation of Rs 2.55 lakh crore for railway infrastructure and initiatives like Prime Minister Gati Shakti.

Housing Finance and Renewable Energy

4. HUDCO (Housing and Urban Development Corporation)

CMP: 210 lbs

Potential growth: 30% (in 3 months)

Rationale: HUDCO has been showing strong technical momentum and solid financial performance, making it a viable choice ahead of a budget that is expected to provide cheaper housing financing options.

5. IREDA (Indian Renewable Energy Development Agency)

CMP: ₹200

Potential growth: 25%

Rationale: IREDA is well-positioned to benefit from increased budget allocations for renewable energy, and the stock has strong fundamentals that point to a potential breakout.

Technical selection

6. BHEL (Bharat Heavy Electricals Limited)

Buy Range: ₹295-297

Stop-Loss: £285

Target: ₹320

Rationale: BHEL stock is showing strong support and breakout from consolidation, suggesting the beginning of an uptrend supported by high trading volumes.

7. WIPRO

Shop Assortment: £501-£506

Stop-Loss: ₹480

Goal: £560

Justification: WIPRO shares have broken out of the consolidation phase, supported by higher trading volumes, which indicates growth prospects.

8. Praj Industry

Buy range: ₹680-685

Stop-Loss: £645

Target: ₹760

Justification: On the daily chart, the stock is forming a bullish pattern, suggesting a continuation of the uptrend.

9. BEL (Bharat Electronics Limited)

Buy Range: ₹295

Stop Loss: ₹283

Goal: £340

Justification: BEL is maintaining a pattern of higher highs and is trading above key moving averages, signaling a potential uptrend.

10. Steel Dad

Shop the range: £169-168

Stop Loss: ₹158

Target: £185-£190

Rationale: Tata Steel is holding above the key 21-week EMA, with strong support levels, making it an attractive long option.

Basic types

11. Apollo APL pipes

CMP: ₹1595

Rationale: As India’s largest manufacturer of structural steel pipes, APL Apollo is expected to benefit from the government’s emphasis on infrastructure and real estate.

12. Triveni Engineering

CMP: ₹395

Rationale: With a diversified portfolio in the sugar and engineering sectors, Triveni is poised to benefit from growing ethanol demand and government product blending initiatives.

13. I love welding

CMP: ₹1338

Rationale: Ador Welding is experiencing strong demand in the infrastructure and rail industries and is expanding its market presence with new investments in automation.

14. Transport Corporation of India (TCI)

CMP: 923 lbs

Rationale: As the largest logistics provider, TCI is well positioned to benefit from the shift to organized logistics and continuous infrastructure support.

Other expert recommendations

15. Godrej Agrovet

Goal: £740

Justification: Given its high growth potential and effective cost management, Godrej Agrovet is undervalued and has the potential to deliver significant gains.

16. SBI (State Bank of India)

Goal: £950

Stop Loss: ₹790

Justification: After a short-term correction, SBI is showing a positive medium-term trend, supported by a higher bottom formation on the weekly charts.

17. Reliance Industries Limited

CMP: ₹3,027

Justification: Reliance broke the consolidation pattern with an increase in volume, indicating strong buying interest and a continuation of the growth trend.

18. Washing Industry

CMP: 690 lbs

Justification: Praj Industries has broken out of a rounded bottom on the weekly chart, supported by increased volume indicating strong buying momentum.

Application

As the Union Budget 2024 approaches, investors should keep an eye on these expert recommendations and consider sector-specific opportunities. Each listed stock has been carefully selected based on current market trends, technical patterns and underlying strengths. However, before making any investment decisions, it is crucial to conduct thorough research and consult with certified financial advisors.

Disclaimer: Opinions and recommendations are those of individual analysts and brokerage firms, not Mint. Investors are encouraged to seek advice from certified professionals before making any financial decisions.