Budget 2024 Expectations: Stocks to watch ahead of Budget

1 Feb 2024 , 11:06 AM

Finance Minister Nirmala Sitharaman will present the interim Budget today.

Undoubtedly, the Union Budget’s effect on the stock market has decreased significantly in recent years, with the government implementing the majority of the measures outside the scope of the Budget.

However, if you go beyond the headline indexes, February 1 might be a watershed moment for several equities, since the Modi administration is expected to maintain the Centre’s budget focused on capital spending from budgetary resources.

Here are some of the stocks that should be on investor’s radar today:

Rail Stocks:

Railway investment may expand by 20% or more year-on-year, driven by additional expansion of DFC, rolling stock, HSR networks, and other infrastructure as defined in the National Rail Plan, according to Nuvama. Rail stocks under consideration are RITES, Ircon, Jupiter Waggons, Titagarh Rail, IRFC, RVNL, and RailTel.

Defence Stocks: 

Defence indigenisation and Defence exports may be boosted by the Budget, with defence capex focusing on R&D, UAV/drones, anti-drone systems, and so on. Defence stocks on the watchlist include Cochin Shipyard, GRSE, HAL, BEL, Mishra Dhatu Nigam, BHEL, Paras Defence, Mazagon Dock, and Bharat Dynamics.

Auto Stocks:

Any support for rural consumption would help rural-focused two-wheeler and entry-level four-wheeler OEMs, as well as auto accessory firms that service these OEMs. Top stocks under the microscope include Maruti Suzuki India, Hero Motocorp, Minda Corp, TVS Motors, Uno Minda, Tata Motors, Sansera Engineering, and Fiem Industries.

Infrastructure Stocks:

We anticipate that capital expenditure on infrastructure would increase significantly in the Union Budget 2024-25 in order to meet the targets established by the National Infrastructure Pipeline and Gati Shakti Master Plan.

Infrastructure is set to seize enormous possibilities. Stocks to watch include PNC Infratech, RITES, KEC International, KNR Construction, and Ahluwalia Contracts.

Power Stocks:

Renewable energy capital expenditure announcements include subsidies for green ventures, PLIs for module manufacture, and investment in battery storage infrastructure. The Suryodaya Yojna also benefits the whole rooftop solar value chain. Tata Power, Borosil Renewables, KPI Green, Adani Green, Waree Renewable, NTPC, NHPC, and Gensol Engineering are among the stocks on the watchlist.

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