Union Budget 2024 is around the corner and Finance Minister Nirmala Sitharaman will table the first full time budget on behalf of Modi 3.0. However, it will be the first time since 2015, when the BJP is not in power with full majority on its own but the Indian stock markets are in full swing.
With an assurance of continuity in the government policies, the new government is likely to push for rural consumption to combat rising inflation. A host of brokerages and analysts, participating in the Business Today budget survey, have suggested a host of stocks and sectors that may be benefitted from the upcoming union budget and announcements.
Bringing inflation down without causing too much collateral damage to the economy and labor markets. Although inflation has moved down from its peak, its still way above the target, said Tata Mutual Fund in its recent report.
It suggested a balanced portfolio strategy to capitalise on the various pockets of strong earnings recovery and outlook. The fund house sees drivers of growth cutting across investment cycles, power, capital goods and real estate.
Narendra Solanki, Head Fundamental Research at Anand Rathi Shares and Stock Brokers is positive on consumption theme and has picked FMCG, consumer, autos (2-wheelers), auto ancillaries, agri and rural focused sectors should do well. He is also positive on Infra and manufacturing as a theme picking ITC, Varun Beverages and Minda Corp as his key picks.
Manish Chowdhury, Head of Research, StoxBox is positive on stocks like Housing & Urban Development Corporation (Hudco), IRCON International and HAL.
Hudco anticipates 15 per cent annual loan growth from FY24 to FY30, driven by state agency contracts and a focus on high-yield infrastructure assets, aiming for improved financial metrics and strong government support in the NBFC sector, he said. "IRCON showcases a robust Rs 27,208 crore order book and strong financial performance with a 17 per cent ROE," Chowdhury added.
Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities said that auto ancillaries have declared excellent financial performance in Q4FY24. "We believe the earnings momentum to continue going forward. Our top picks in this space are Lumax Auto Tech, Uno Minda and Endurance Technology," he said.
Trivesh D, COO, Tradejini has picked Larsen & Toubro (L&T), IRCTC, Hindustan Aeronautics (HAL) and Bharat Electronics as his key budget picks. However, it has suggested investors to stay away from overheated pockets like SME space
Nishit Master, Portfolio Manager, Axis Securities PMS believes that infrastructure, capital goods, defence, and farm equipment sectors will be at the focus in the budget. "On the other hand, the IT sector is not expected to receive any major benefits in the budget," he said.
Ravi Singh, Senior Vice-President of Retail Research at Religare Broking: is positive on PSUs, Defence, and Railways on the back of government's focus on capital construction, boosting domestic manufacturing, reducing dependency on imports and modernizing existing infrastructure.
Shrey Jain, Founder and CEO at SAS Online, India’s Deep Discount Broker has not recommended any stocks in specific, but sees select stocks from textile, chemicals and agro-processing industry are expected to do well in near to medium term.
Nitasha Shankar, Head Equity Strategy at YES Securities is positive on infra and ancillaries, housing and building materials, agri focused sectors like tractors, agro chemical, auto and auto ancillaries, PSU space and power sector focused on green and clean energy as the key budget themes.