Union Budget Expectation for 2024-25
The union budget for 2024-25 will be presented on Tuesday that is on 23rd of July. Ahead of the project, many brokerages have given their prediction on stocks that are to be washed out for in various segments and themes. Let’s dive in and have a look at these stocks.
As for brokerages, themes like infrastructure, railways, power, consumer durables, affordable housing, defence, healthcare and job creation will be key. Anand Rathi in a his pre-budget note said that the budget will likely be positive for the equity market. Wisdom research has identified 31 stocks in 9 themes. To watch out for, let’s have a look at them one by one.
01. Infrastructure:
Government keep push is expected to continue with the roles, power, urban development and railway being in focus. Stocks like L&T, KNR Construction and PNC Infratech are to be washed out for as per latest research. In the last one year, all these three stocks have risen around 50%. UBS has a buy rating on L&T with a target price of ₹4180. Ultratech cement is also recommended by many brokerages head of the budget.
02. Railways:
Significant investments are expected under railways as the government plans to expand and modernise railway infrastructure. As per latest research, IRCTC, Container Corporation of India and Titagarh wagons to be washed out for. As per Anand Rathi, RVNL will be a key stock to watch under the railway segment as it has surged 223% so far in 2024. At present levels, the stock is trading at an overworked zone on multiple timeframes.
As per the weekly chart, the counter is likely to remain positive as long as the stock holds above by ₹580 levels. The stock can potentially rally up to ₹720 as per the brokerage. Rail stocks have doubled since interim budget and well unless think that the rally is here to stay. Prabhudas Leeladhar says that the budget will benefit stocks like IRCON, Siemens, ABB BML, Jupiter Wagons and more.
03. Affordable housing:
Government is expected to increase funding for portable housing and development of new satellite townships near metro cities. As per latest research, stocks to watch out for include Godrej properties, DLF and Oberoi Realty. Sharekhan is also bullish on Samhi Hotels, Suntexk Realty, Arvind Smart and more.
04. Defence:
Under defence, latest research says that BEL, HAL and Bharat Dynamics are key to watch out for. Sharekhan is also bullish on Bharat Forge. Defence stocks have rallied massively 90% in just one month. The combined market capitalization of top 10 stocks have zoomed 1.76 lakh crore rupees. Top gainers include Mazgaon Dock, Shipbuilders and GRSE. ICICI securities has an add rating on HAL with the target price of ₹5170. It also has an air braking on Bharat dynamic and BEL with targets of ₹1745 and ₹300 respectively.
05. Agriculture:
Expectations are for higher MSP on major crops and strengthening of PM KISAN SAMMAN NIDHI. Stocks like M&M, ESCORTS and UPL are expected to rise as per latest research. Anand Rathi and Axis securities are also bullish on M&M. So far this year, M&M has risen 61% . For a long term, the bias remains bullish on the stock as per Anand Rathi.
06. Financials:
MSMES could benefit from government expansion of credit programs and so will some banks and financial institutions. Stocks like HDFC Bank, Kotak Mahindra Bank will be in focus as per latest research. As per Sharekhan, SBI, PNB, Bank of India, LIC housing, Canfin homes, ICICI Bank, Axis Bank and ICICI Lombard may gain.
07. Job Creation Play:
Stocks like TCS, Infosys and L&T as per latest research may also gain on job creation front as the issue was a key agenda during elections. Government is also looking at improving consumption in India which can happen only if people can earn well and have so much money to spend.
08. FMCG and consumer durables:
Stocks like HUL, ITC, Dabur and Emami are set to gain post budget. Anand Rathi also has ITC on its list of stocks to watch out for. It says that the bias for ITC is likely to remain upbeat as long as the stock rates about 455 levels.
09. The last segment includes power stocks like INOX wind, Power Grid, Sarvotech Power recommended by axis securities. The research also recommends Suzlon energy, NTPC, Adani Green Energy while Sharekhan is also bullish of Tata power and Coal India. Anand Rathi says that the power grid can potentially rally up to ₹374 levels. In a note, Anand Rathi also said that finolex cables, gmr airports, dixon tech, SBI, Angel one will also be key stocks to watch out for ahead of the budget.
