Investors are closely eyeing sectors poised to benefit from Finance Minister Nirmala Sitharaman’s upcoming announcements in Union Budget 2024. Scheduled for presentation on July 23, Sitharaman will mark a significant milestone by delivering seven consecutive Union budgets, surpassing Morarji Desai’s record of six.
As anticipation builds, brokerage firm JM Financial anticipates the budget to focus on balancing fiscal deficit management, boosting capital expenditure for growth, and enhancing social spending.
Stocks Poised to Gain:
JM Financial has highlighted several stocks expected to attract attention before the budget announcement as per HT:
- Mahindra & Mahindra Ltd
- Hero MotoCorp Ltd
- ITC Ltd
- Sumitomo Chemical India Ltd
- Reliance Industries Ltd
- Power Grid
- NTPC Ltd
- Sanghvi Movers Ltd
- Bharat Electronics Ltd
- Bharat Forge
- VA Tech Wabag Ltd
- Larsen & Toubro Ltd
- DLF Ltd
- Ambuja Cements Ltd
- APL Apollo
- PFC
- IRCON International Ltd
Sectors Likely to Benefit:
- FMCG Sector: Companies like Dabur India, Hindustan Unilever (HUL), Godrej Consumer, and Nestle India could benefit from potential tax adjustments, expanded tax slabs, or increased limits for tax-saving investments under Section 80C. However, increased excise duties on cigarettes and tobacco products may adversely affect manufacturers such as ITC and Godfrey Phillips.
- Defence, Railways, and Infrastructure: A surge in allocation for defence capital expenditure would favor stocks like Bharat Electronics (BEL) and Hindustan Aeronautics (HAL). Similarly, higher capital outlay for railway infrastructure would likely benefit stocks including RVNL, Titagarh Rail Systems, IRCON, and BEML.
Investors and stakeholders are eagerly awaiting Sitharaman’s budgetary announcements, which are expected to shape market dynamics and investment strategies in the coming fiscal year.
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