Vani Jha
Stock market plan for Budget 2024: Despite the recent drop in the Indian stock market due to weak global market cues and escalating tensions in the US-China trade war, there is still room for growth. During early morning trading, the Nifty 50 index fell by more than 125 points, the BSE Sensex fell by almost 400 points, and the Nifty Bank index fell by over 300 points. However, this is not cause for concern, but rather a chance for strategic investment.
According to observers, the Indian stock market had a trend reversal following severe selling on Friday. They predicted that the movement will continue till Tuesday, as the market awaits the Modi 3.0 Government’s Union Budget 2024. The Union Budget 2024 is a key event on the financial calendar since it defines the government’s fiscal policies and spending intentions for the coming year. They claim that global cues are harmful as tensions in the US-China trade conflict escalate. They suggested that investors look at companies that have sought to increase their CAPEX in recent quarters. They stated that the Union Budget is projected to remain a growth-oriented budget, which includes railways, infrastructure, energy, oil and electricity, and automobiles.
Stock Market Strategy for Budget 2024
Sugandha Sachdeva, Founder of SS WealthStreet, discusses the stock market strategy ahead of the Union Budget 2024. Her knowledge and experience in the subject form a solid foundation for her predictions. She stated, “We anticipate significant reform measures to promote long-term growth and improve social welfare, with strategic investments in agriculture, infrastructure, public healthcare, railways, power/renewable energy, real estate, defence, logistics, and tourism.” Furthermore, the new tax regime is expected to include adjustments to income tax slabs or an increase in the standard deduction to improve discretionary income. Furthermore, efforts are expected to balance the fiscal deficit while still providing adequate money for development projects.”
Avinash Gorakshkar, Head of Research at Profitmart Securities, stated that when selecting a quality stock ahead of budget 2024, one should look at companies who have worked on CAPEX expansion and debt reduction. A debt-free firm with a good CAPEX history would be an excellent investment today, since the Union Budget may shortly boost such equities.” According to Gorakshkar, the forthcoming Budget is projected to be growth-oriented, which will boost infrastructure and related sectors. He believes that a growth-oriented budget and stable conditions in the national economy will drive demand in the banking and auto sectors.
Expecting some correction in the market post-budget 2024, Sugandha Sachdeva said, “Budget 2024 is prepared to handle the diverse demands of the economy while combining populist initiatives and budgetary management. Investors should remain aware and cautious, prepared to benefit on possibilities presented by the Budget’s pronouncements while remaining mindful of potential market corrections.”
Stocks to Buy Today
Avinash Gorakshkar stated, “One can look at buying M&M and Tata Motors in the auto segment, whereas SBI, ICICI Bank, and Axis Bank can be a good bet in the banking segment.”
Speaking on companies to purchase before the Union Budget 2024, Sugandha Sachdeva said, “Empirical data suggests volatility remains high on budget day, but we have identified a few stocks that may see short-term dips but look to traverse on a higher trajectory from a medium-term perspective.”
Sugandha recommended purchasing SBI Card, Oberoi Realty, RITES, KPIT Tech, and HBL Power, with the following suggestions:
- 1) SBI Card: Buy at ₹7680-685, aim ₹840, stop loss ₹595.
- 2) Oberoi Realty: Buy at ₹1570-1580, objective ₹2050, stop loss ₹1280.
- 3) RITES: Buy at ₹650-₹660, goal ₹880, stop loss ₹520.
- 4) Buy KPIT Tech around ₹1690-1695 with a target of ₹2080 and a stop loss of ₹1500.
- 5) HBL Power: Buy around ₹540-₹550, goal ₹765, stop loss ₹460.
Conclusion
As the Union Budget 2024 approaches, strategic investment in the stock market can yield significant returns despite current volatility. Expert insights suggest focusing on sectors poised for growth, such as infrastructure, energy, and automobiles. Notable recommendations include stocks like M&M, Tata Motors, SBI, ICICI Bank, Axis Bank, SBI Card, Oberoi Realty, RITES, KPIT Tech, and HBL Power. Investors should stay informed and cautious, ready to capitalize on opportunities while being mindful of potential market corrections post-budget. The anticipated reforms and fiscal measures aim to promote long-term growth and enhance social welfare, making the stock market a promising avenue for investment.
