Budget 2024 Impact on Stocks to Watch Today Highlight: On February 1, finance minister Nirmala Sitharaman will present an ‘interim’ budget as the government faces a general election this year, in April-May. There are the top stocks to watch before the interim budget to watch for.
The benchmark equity indices ended Budget’s day in the negative territory. The NSE Nifty 50 dipped 0.13% to settle at 21,697.45, while the BSE Sensex dropped 0.15% to 71,645.30. The broader indices ended in mixed territory, with gain led by Large-cap and Midcap stocks. Bank Nifty index ended higher by 0.42% to settle at 46,188.65. PSU Banks and Auto stocks outperformed among the other sectoral indices while Realty and Metal stocks shed.
“The Interim Budget seems to be very positive and growth oriented. It is well balanced budget where the FM has been able to keep fiscal deficit low along with focus on growth and welfare measures. The road map which they have created in last 10 year has been extended further in this budget with focus on Infrastructure, Railway, Renewable, Housing, manufacturing etc. Capital expenditure remains high which drives the economy in the long term. Lower fiscal deficit will have impact on bond yield and yield of govt securities will come down further which already has reacted to the budget positively with around 8 bps down in yield. Trajectory of fiscal deficit has been kept low which is positive from a rating, FII flow and currency point of view. Corridor will port connectivity will reduce turnaround time hugely and will have very positive effect on the economy. Although it is an interim budget and final will come out post election only,” said Mukesh Kochar, National Head of Wealth at AUM Capital.
“The budget showcases a strong projection of India’s journey from developing to a developed nation, with multiple announcements focused on the socio-economic upliftment of the masses under the PMAY scheme through a strong development of real estate and infrastructure. The announcement of a housing scheme dedicated to middle-class citizens will empower the masses to shift to buying from renting, thus elevate the overall standard of living across the country. The Metro Rail and Namo Bharat expansion will influence the rapid spread of urbanization, thus leading to creation of micro-markets in and around metro cities. In the pursuit of economic resilience, the Interim Budget also charts an ambitious course, unveiling a capital expenditure of Rs 11.1 lakh crore for FY25. With a prudent 11.1% rise in infrastructure spending, the budget echoes a commitment to aligning growth estimates. In addressing the pressing issue of deteriorating infrastructure, India’s imperative lies not in reduction but in a substantial increase in investment—a pivotal step towards a robust and sustainable future. From a broader perspective, the First Develop India – FDI initiative will further propel development and infrastructural growth, adding significant value to job creation, emergence of new micro-markets, strengthening purchasing power, ultimately boosting the housing demand across India,” said Dhaval Ajmera, Director, Ajmera Realty & Infra India.
Stocks to watch-
Swan Energy, Macrotech Developers, Mahindra Lifespace Developers, DLF, Godrej Properties, Phoenix Mills Ltd, Brigade Enterprises, Prestige Estates Projects, Sobha Ltd, and Oberoi Realty.
The benchmark equity indices ended Budget’s day in the negative territory. The NSE Nifty 50 dipped 0.13% to settle at 21,697.45, while the BSE Sensex dropped 0.15% to 71,645.30. The broader indices ended in mixed territory, with gain led by Large-cap and Midcap stocks. Bank Nifty index ended higher by 0.42% to settle at 46,188.65. PSU Banks and Auto stocks outperformed among the other sectoral indices while Realty and Metal stocks shed.
“The budget lays strong emphasis on an inclusive and decentralized economic growth that will position India among the supremacy of developed nations. Game-changing strategic move of creating a MSME-friendly regulatory environment, and facilitation of advanced training to trade and compete at a global level will empower a large number of gems & jewellery exporters, thus driving high-octane economic growth for the country.
The recently announced India-Middle East-Europe economic corridor will act as a key enabler that will help Indian gems & jewellery exporters establish new trade relations in the overseas markets. Overall, the announcements made in today’s budget showcase the vision of the government to lead India towards the goal of Vikasit Bharat by 2047,” said, Colin Shah, MD, Kama Jewelry
Stocks to watch-
Titan Company, PCJ Jewellers, Kalyan Jewellers, Tanishq, and Senco Gold.
Finance Minister Nirmala Sitharaman has lowered the allocation for fertiliser subsidy by 13% to ₹1.64 lakh crore for 2024–25 in the interim budget compared to ₹1.89 lakh crore revised budget estimate for FY24. The allocation for fertiliser subsidy for FY24 was budgeted at ₹1.75 lakh crore.
Stocks to watch-
Agro Phos India Ltd, Aries Agro, Bohra Industries, Chambal Fertilisers & Chemicals, Coromandel International, Fertilizers & Chemicals Travancore, Gujarat State Fertilizers & Chemicals, Khaitan Chemicals & Fertilizers, Krishana Phoschem, Madhya Bharat Agro Products, Madras Fertilizers, Mangalore Chemicals & Fertilizers, Nagarjuna Fertilizers & Chemicals, National Fertilizer, Nova Agritech, Paradeep Phosphates, Rashtriya Chemicals & Fertilizers, Rama Phosphates, Southern Petrochemicals Industries Corporation, Zuari Agro Chemicals.
The Nifty Realty index drops over 1% in the intra-day trade on Thursday i.e. Budget day. The fall lead by Phoenix Mills Ltd, Brigade Enterprises, Prestige Estates Projects, Sobha Ltd, and Oberoi Realty.
“It’s encouraging that the government recognizes the importance of addressing skill development to meet the demand for a high-quality workforce in the emerging technology sector, crucial for India’s ambitious goal of a $5 trillion economy..All the initiatives mentioned in the Interim budget speech like establishment of more IITs, IIITs, STEM courses etc., are cementing the foundation of the growing India, which is youth. Commendably, the government’s embrace of deeptech in critical sectors like defense underscores our country’s progressive stance. Given that R&D is a capital-intensive step for businesses in deeptech, blockchain, machine learning, and Generative AI, increased allocation towards MUDRA schemes and the announcement of a 1-lakh crore corpus with 50-year interest-free support will undoubtedly fuel technological growth,” said Sarvagya Mishra, Co-founder & Director at Superbot.
“ We are happy by the government’s forward-thinking approach reflected in today’s announced Interim Budget. The emphasis on the Electric Vehicle (EV) ecosystem underscores a commitment to sustainable mobility and a greener environment. The recognition of EVs acts as a pivotal component that aligns with our vision for a cleaner, more efficient future. The anticipation of a substantial boost in manufacturing and infrastructure development is truly exciting. This move toward the Net Zero Goals is a big step toward a more sustainable India. The financing gap for offshore wind energy potential and the introduction of the new biomanufacturing initiative are particularly exciting for us as they represent significant milestones in the direction of green growth promotion. The commitment to supporting EV manufacturing and charging infrastructure, along with the adoption of EV buses, is admirable. Since it was an interim budget, we anticipate the detailed budget revealing more extensive measures for the electric vehicle sector. The commitment to the National Green Hydrogen Mission is evident in the increased budget allocation, rising from 297 crore in 2023-24 to a remarkable 600 crore in the fiscal year 2024-2025,” said Manish Chugh, Co-founder & Director of Aponyx Electric Vehicles,
“While the budget itself contained minimal surprises, it reflected the government’s commitment to fiscal prudence and tempered expectations. Unsurprisingly, the market showed muted reaction, choosing to prioritize upcoming earnings reports and global developments as drivers of stock- and sector-specific outperformance. For Nifty, the key resistance zone lies at 21800-21850; a break above this level could pave the way for a new all-time high. Conversely, immediate support sits at 21500, with 21200 providing the next safety net,” said Sunil Nyati Managing Director of Swastika Investmart LTD.
“The Pradhan Mantri MUDRA Yojana has disbursed INR 22.5 lakh crore in loans to 43 crore people, transforming India’s economic landscape. Recognised for boosting consumer spending and supporting small businesses, it has become a game-changer for the economy. With collateral-free credit for micro-enterprises, the scheme successfully integrates the unserved and under-served into institutional credit, empowering women entrepreneurs with 30 crore loans,” said Vivek Iyer Partner and FinTech Industry Leader, Grant Thornton Bharat
Stocks to watch in MSME sector-
Olimax system, Minimac System, Assam Carbon Product, Emkay Taps and Cutting Tools, New Aniket Packaging Industries, Sea Hydrosystems India Pvt Ltd, Kancheepuram Marudhar Packaging, Shiva Granito Export, Acemicromatic Manufacturing Intelligence Technologies, Aerol Formulations.
“With the aim of fiscal consolidation, the government focused on reducing the fiscal deficit. However, no major changes were announced to taxes or spending, suggesting. Increased spending on infrastructure projects like roads, railways, and airports was announced, which could benefit the construction, materials, and transportation sectors. Measures to support farmers, such as increased allocation to irrigation and agricultural universities, were included. This could benefit companies involved in agricultural inputs, equipment, and allied services. The budget allocated funds for various social welfare schemes, including healthcare and education. This could benefit companies providing healthcare services, educational infrastructure, and related products. Initiatives to boost the growth of micro, small, and medium enterprises (MSMEs) and startups were announced. This could benefit companies offering financial services, technology solutions, and other support services to these segments,” said Atul Parakh, CEO of Bigul
“The Budget’s focus on green energy is critical for the expansion of electric vehicles (EVs) in India. Supporting EV manufacturing, improving charging infrastructure, encouraging the widespread use of e-buses, creating entrepreneurial opportunities, and advancing technical skills development, the EV industry can strive for comprehensive and sustainable growth, projected at approximately 50% Compound Annual Growth Rate (CAGR) between 2022-2030.” said Saket Mehra Partner and Auto & EV Industry Leader, Grant Thornton Bharat
Railway-related stocks such as IRFC, Rail Vikas Nigam, Railtel, and others are experiencing a decline in trading following the conclusion of Finance Minister Nirmala Sitharaman’s interim Budget speech in the Lok Sabha on Thursday.
The Budget has allocated a capital expenditure (capex) of ₹2.55 lakh crore for the Indian Railways, slightly higher than the ₹2.4 lakh crore announced in the previous year’s Budget.
Brokerages on the Street had anticipated a substantial rise in capex for the railway sector in this interim Budget. Nirmal Bang, a brokerage firm, had expected a 20% increase in Railway Capex during the Budget.
Share like IRFC, RVNL, IRCTC, Texmaco Rail & Engineering are down by more than 2% in the intra-day trade
“We understand this is an Interim Budget and did not introduce much on the policy aspect for startups specifically, nevertheless, with the allocation of an INR 1 lakh crore corpus for interest-free loans, the government not only acknowledges but firmly supports the pivotal role startups play in our economy’s fabric. The extension of tax benefits for another year further cements the commitment to nurturing the immediate needs of this vibrant sector. As we look ahead, we remain hopeful for policy reforms that will further invigorate angel and foreign investments, setting the stage for an unprecedented era of growth and opportunity post-elections. This budget, indeed, is a testament to the belief that startups are not just businesses, but the very backbone of our nation’s future prosperity,” said Kajal Malik, Co-founder and CBO at PickMyWork.
Maintaining its commitment to advancing infrastructure, the Interim Budget 2024 has suggested a fourth consecutive yearly increase of 11.1% in capital expenditure, amounting to ₹11.11 lakh crore, equivalent to 3.4% of the GDP. This aligns seamlessly with the anticipated market projections.
Stocks to watch-
Larsen & Toubro, GMR Airports Inf, IRB Infra.Devl, Ircon Intl, Rites, G R Infraproject, HFCL, Engineers India, Reliance Infra, Techno Elec.Engg,
“Certainly, particulars in regard to the E-Mobility mission and encouragement of EV infrastructure were missing in the speech, however, the budget did point towards creating ambitious policies towards adoption of EVs in the public transportation sector. Furthermore, since the budget has circumscribed the requirement to strengthen manufacturing of EVs and infrastructure, we can be sure that it stands high on the government’s agenda, and we do expect supporting policies to follow soon,” said Mr. Atul Gupta- Co-founder & Director at e-Sprinto.
“Infrastructure allocation has been increased slightly to make up for 3.4% of the GDP. This has come in mainly with railways to be revamped with 3 new corridors and an increased number of Vande Bharat trains. We don’t invest directly in PSUs but we saw some action as our portfolio companies manufacture parts for railways. The IMEC, agreed upon during the G20 summit was also mentioned so we should see the development of the corridor starting soon. Lakshadweep tourism, which has been in conversation for some time now, along with local and religious tourism will be promoted,” said Divam Sharma, Founder and Fund Manager at Green Portfolio, PMS.
Share of Housing Housing And Urban Development Corp jumps upto 6% post budget speech on the following news that Finance Minister Nirmala Sitharaman promised 2 crore new houses over the next five years in her Interim Budget speech.
Finance Minister Nirmala Sitharaman announced three new corridors for the railways – Energy, Mineral and Cement corridor, Port Connectivity Corridor and a High Traffic Density Corridor.
Railway, Energy, Logistic and Cement Stocks to remain in focus .
Finance Minister says Health care cover under Ayushman Bharat to be extended to all ASHA workers, all Anganwadi workers and helpers
Stocks to watch-
Apollo Hospitals Enterprise, Max Healthcare Institute, Fortis Healthcare, Global Health, Narayana Hrudayalaya, Dr. Lal PathLabs, Aster DM Healthcare, Krishna Institute of Medical Sciences, Rainbow Children’s Medicare, Metropolis Healthcare Ltd
Finance Minister says: Entrepreneurship opportunities to a large number of vendors for supply and installation, employment opportunities for youth with technical skills in manufacturing, installation and maintenance
Stocks to watch-
Olectra Greentech, Tata Motors, Exide Industries, Mahindra and Mahindra, Power Grid Corporation, Hero MotoCorp, Motherson Sumi Systems, Amara Raja Batteries.
Finance Minister says It is an important priority to ensure timely and adequate finances, relevant tech and appropriate training for MSMEs to grow and compete globally
Stocks to watch-
Olimax system, Minimac System, Assam Carbon Product, Emkay Taps and Cutting Tools, New Aniket Packaging Industries, Sea Hydrosystems India Pvt Ltd, Kancheepuram Marudhar Packaging, Shiva Granito Export, Acemicromatic Manufacturing Intelligence Technologies, Aerol Formulations.
It is an important priority to ensure timely and adequate finances, relevant tech, and appropriate training for MSMEs to grow and compete globally. Orienting the regulatory environment to facilitate their growth will be an important component of this, said Finance Minister.
MSME stocks to watch: A++, AccelerateBS India, A Swing Agriteck, Adeshwar Meditechs, Angel Fibres.
LIC Housing Finance, Aavas Financiers, Can Fin Homes, Gic Housing Finance, Repco Home Finance, Reliance Home Finance, Indiabulls Housing, Home First Finance, India Home Loans, Punjab National Bank Housing Finance, Housing and Urban Development Corporation, Indiabulls, Mahindra Lifespaces, Housing Development Finance Corporation, Puravankara Limited, Omaxe, India Shelter Finance Corporation Ltd
Finance Minister says two crore more houses will be built under the Pradhan Mantri Awas Yojana – Gramin
Stocks in Focus-
DLF, Macrotech Devs, Godrej Properties, Prestige Estates, Oberoi Realty, Phoenix Mills, NBCC (India), Brigade Enterprise.
Parag Milk Foods, Heritage Foods, Hatsun Agro Products, Vadilal, Milkfood Ltd, Dodla Dairy, Kwality Ltd, Britannia Industries, Kmg Milk Food
Finance Minister says Electronic national agricultural market has integrated 1,361 mandis and is providing services to 1.8 crore farmers with trading volume of 3 lakh crores of rupees.
Stocks to watch-
Coromandel International, Bayer CropScience, Sumitomo Chemical India, Chambal Fertilizers Ltd, BASF India Ltd, Gujarat Narmada Valley Fertilizers Chemicals, Fertilizers & Chemicals Travancore Ltd, Bombay Burmah Trading Corporation.
Healthcare stocks in focus: Glenmark, AstraZeneca India, and Cipla.
Finance Minister says PM Mudra Yojana has sanctioned 43 crore loans amounting to Rs. 22.5 lakh crore for entrepreneurial aspirations of your youth,
Stocks to watch-
Nykaa, Nazara, Zomato, Paytm, PB Fintech, CarTrade, Fino Payments Bank, IndiaMart, EaseMyTrip, and MapmyIndia.