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Union Budget 2024: Finance Minister Nirmala Sitharaman is set to unveil the newly-elected Modi 3.0 government’s first Union Budget 2024 later this month. The upcoming budget is likely to be an extension of the interim budget presented earlier this year in February 2024. The market sentiment has turned bullish since June-end after foreign inflows resumed in Indian markets and also as investors priced in stability after Bharatiya Janata Party (BJP’s) return to power.
The 30-share BSE benchmark hit its fresh lifetime high of 80,000 this week in its fastest-ever 10,000-point bull run in a record 58 market sessions. The blue-chip Nifty 50 notched another record closing high on Friday, July 5, and chalked up its fifth straight week of gains, logging its longest such streak this year.
The NSE Nifty 50 rose 0.09% on the day to end at 24,323.85 as gains in energy stocks helped it notch a record closing high for the fourth time this week. Market analysts anticipate the frontline indices to consolidate, with a generally positive outlook. In the current market scenario, D-Street experts have made few stock recommendations ahead of the Budget announcement.
In this regard, Hemal Shah, Fund Manager, Torus ORO PMS, has listed four key stocks that are likely to benefit the most from the upcoming Union Budget 2024 this month. According to Shah, the four stocks include Larsen & Toubro (L&T), HDFC Bank, Canfin Homes, and state-owned explorer Oil India.
1. L&T: The government’s focus on infra growth may continue in this budget too. In February, the government raised its infra spending by 10% to ₹11 lakh crore. L&T, being the market leader and present in most infra projects, should benefit going ahead. L&T has been reporting steady results.
2. HDFC Bank: A boost to grow private capex would be positive for the BFSI spaces. HDFC Bank, an industry leader, has been underperforming the benchmark but can lead the rally. FII turning positive may bring some cheers to the counter. Post-merger with HDFC Ltd, the bank’s balance sheet is expected to strengthen.
3. Canfin Homes: Affordable housing would be one of the main agendas in this budget, and Canfin Home is one of the finest players in the affordable housing finance segment, with pristine asset quality and superior underwriting practices. Shah expects a healthy trajectory in loan growth and stable asset quality trends to sustain while margins remain a key monitorable.
4. Oil India: The state-owned oil explorer is engaged in the exploration, development, and production of crude oil and natural gas. In collaboration with the Assam government, the company received approval to establish 620 MW capacity solar power projects in Assam. Oil India aims to produce four MMT of crude oil and 5 BCM of gas in the coming years. It operates 3.176 MMT and 3.18 BCM for crude oil and gas.
As investors eagerly await the Union Budget announcements, these stock recommendations from experts like Hemal Shah provide valuable insights for potential gains in the market. Keeping an eye on how the policies and announcements will impact these sectors and companies can help investors make informed decisions for their portfolios.