Budget 2024: Infrastructure, Energy, Real Estate – What Sectors and Stocks to Watch | Market News

With the stock market in the grips of a seemingly endless bull run, it’s only natural that there will be feverish speculation about which sectors and stocks to watch on Budget Day.

Amid the seemingly endless bull market, speculation is feverish about which stocks and sectors to watch out for on budget day. (Image source: Freepik)

One of the most dynamic parts of the economy over the past 10 years has been India’s stock markets, with the broad Sensex 30 index changing by a whopping 3.24 times – from 25,000 to 81,000 between May 2014 and July 2024.

So it is natural that there will be feverish speculation on stocks to watch in the run-up to the Budget. The Budget that Finance Minister Nirmala Sitharaman will present will be special because the Modi 3.0 government is the first coalition government in India in 10 years.

Certainty of continuing reforms

Significantly, after taking the oath of office, Prime Minister Narendra Modi said his government would continue with reforms announced earlier to make India economically competitive in the global arena. This reassured investors and the bullish rally that had gripped the market since the pandemic subsided re-emerged after a brief dip on the counting day, when there was a massive fall of around 6,000 points.

Experts discussed a number of actions worth paying attention to given the possible development of the budget situation.

Infrastructure, energy, real estate, etc. in the spotlight

“We expect significant reform measures to support sustainable growth and enhance social welfare, with strategic allocations in agriculture, infrastructure, public healthcare, railways, power/renewable energy, real estate, defence, logistics and tourism,” Sugandha Sachdeva, Founder, SS WealthStreet, told Mint.

FMCG, Auto, Defense

“The consumer discretionary sector will be closely watched. So will auto, pharma, healthcare and defence stocks. Manufacturing stocks are also expected to get a boost from this fiscal,” said Nilanjan Dey, director, Wishlist Capital.

Bank and car stocks

Picking specific stocks, head of research at Profitmart Securities, Avinash Gorakshkar told media, “M&M and Tata Motors can be considered in the automobile segment, while SBI, ICICI Bank and Axis Bank can be good picks in the banking segment.”

Capex and low debt

Gorakshhar’s Logic: Companies that have undertaken capital expenditure expansion and debt reduction can be considered. A debt-free company with a solid capital expenditure history would be an ideal stock to buy as the budget could give a boost to such companies.

FMCG valuations are favorable

FMCG companies like HUL, Nestle India, Dabur and Parle Products have also been tipped by some experts. FMCG companies could be a boost to the finance minister’s potential strategy of infusing more cash to the common man and the rural population to boost consumption.

Kotak Mutual Fund managing director and investment guru Nilesh Shah said favourable valuations could be another factor driving growth in fast-moving consumer goods (FMCG) stocks.

Defense stocks, as well as manufacturing stocks, have performed spectacularly over the past few months.

Experts warn that markets traditionally remain volatile on Budget day.

However, please remember that before investing, you must consult with a qualified investment expert.

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