Stock market strategy for Budget 2024: The Indian stock market has recently experienced a decline due to unfavorable global market trends stemming from increasing tensions in the US-China trade conflict, yet opportunities for growth remain. The Nifty 50 index fell by more than 125 points, the BSE Sensex dropped by about 400 points, and the Nifty Bank index decreased by over 300 points in early trading. Nevertheless, this situation should not be seen as a reason for concern, but rather as a chance for strategic investment.
Experts indicate that the Indian stock market has experienced a trend reversal following significant selling on Friday. They believe this trend may persist until Tuesday as the market anticipates the Union Budget 2024 from the Modi 3.0 Government. The Union Budget 2024 is a crucial event in the financial calendar, detailing the government’s fiscal strategies and expenditure plans for the upcoming year. Analysts note that global indicators are unfavorable due to escalating tensions in the US-China trade conflict. They suggest investors focus on companies that have increased their capital expenditures in recent quarters. The Union Budget is expected to prioritize growth, highlighting sectors such as railways, infrastructure, energy, oil and power, automotive, and banking, where investors can find promising listed companies
Stock Market Strategy for Budget 2024
Stocks to buy today
Regarding stocks to consider before the Union Budget 2024, Avinash Gorakshkar stated that M&M and Tata Motors are worth considering in the automotive sector, while SBI, ICICI Bank, and Axis Bank are solid options in the banking sector. In relation to shares to acquire prior to the Union Budget 2024, Sugandha Sachdeva noted that historical data indicates increased volatility on budget day. However, a selection of stocks has been identified that may experience short-term declines but are expected to trend upward over the medium term.
Ahead of the Union Budget 2024, Sugandha Sachdeva, Founder of SS WealthStreet, reveals her stock market strategy and insights. With her solid expertise and experience, she offers well-founded predictions. She anticipates major reforms aimed at promoting sustainable growth and improving social welfare, with targeted investments in agriculture, infrastructure, public healthcare, railways, power and renewable energy, real estate, defense, logistics, and tourism. Additionally, she expects adjustments to income tax brackets or an increase in the standard deduction under the new tax framework to boost disposable incomes. Furthermore, initiatives are anticipated to manage the fiscal deficit while ensuring adequate funding for development initiatives.
When considering which quality stocks to select ahead of the 2024 budget, Avinash Gorakshkar, Head of Research at Profitmart Securities, highlighted the importance of focusing on companies that have invested in capital expenditure (CAPEX) expansion and decreased their debt levels. He noted that a debt-free stock with a solid CAPEX track record would be an excellent investment choice, especially as the Union Budget could soon drive interest in such stocks. Gorakshkar anticipates that the forthcoming budget will focus on growth, benefiting infrastructure and related sectors. He also mentioned that a growth-centric budget, combined with robust national economic conditions, is likely to generate increased demand in the banking and automotive industries.
Anticipating market adjustments following the 2024 budget, Sugandha Sachdeva stated that the budget aims to meet various economic needs while maintaining a balance between popular initiatives and fiscal discipline. Investors should remain aware and prudent, prepared to seize opportunities from the budget announcements while considering the possibility of market corrections.