Budget 2024: Analysts say defence, rail, infrastructure and renewable energy sectors will remain in focus

Market investors are eagerly waiting for Finance Minister Nirmala Sitharaman to present the full budget for fiscal 2025. According to media reports, the government will present the budget in the third week of July, but no official announcement has been made so far.

Experts say the Indian stock market has maintained a positive tone since the elections, gradually rising week-on-week. On Friday, profit-taking at higher levels once again weighed on the Indian stock market, causing benchmarks, Sensex and Nifty 50, to end with losses on Friday, June 28, snapping their four-day winning streak.

“Indian benchmark indices rallied this week despite mixed signals from the global market, especially on inflation concerns. Investor focus was mostly on large cap stocks, resulting in underperformance of midcap and small cap segments. The IT sector, in particular, showed a significant recovery, while private banks outperformed public sector banks in the banking segment,” said Vinod Nair, Head of Research, Geojit Financial Services.

Which sectors should remain in focus ahead of Budget 2024?

According to Ravi Singh, vice-president of retail research at Religare Broking Ltd, infrastructure investments will focus on sustainability and will aim to modernize transport networks and improve environmental performance.

“Energy policy is expected to emphasize renewables, aligning with global sustainable development goals and reducing carbon emissions. We cannot forget about the defense and railway pockets, where the emphasis will be on higher investment outlays. The development of these sectors will be closely watched as stakeholders await the impact of the Budget on economic growth and economic recovery strategies,” Singh told Livemint.

Brokerage firm Jefferies India Pvt Ltd expects the budget to have a positive impact on several domestic sectors, including affordable housing, capital expenditure, consumer discretionary and interest rate-sensitive sectors. However, it expects information technology and pharma to be lacking significant catalysts.

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