India has set a goal to achieve a $5 trillion economy by 2028, and it is currently the fifth-largest economy with an estimated GDP of $3.7 trillion in the fiscal year 2024.
Various factors such as the budget, a stable government, digital infrastructure, manufacturing, and overall infrastructure significantly contribute to the country’s growth.
Here are the three such factors that can boost the country’s economy in February of 2024.
1) On January 30-31, The Federal Reserve’s Open Market Committee (FOMC) will hold its first-rate meeting of 2024, to announce FOMC’s Interest rate decision and provide information on the central bank’s outlook.
2) India’s union budget for 2024-25 will be presented on 1 February 2024 by the financial minister. Indian capital markets are expecting beneficial schemes, awarding programs, and many others for the economy.
The Union budget which is scheduled for tomorrow is an interim budget because of Lok Sabha elections. The full budget for the fiscal year 2024-25 will be presented after the formation of the new government after the general elections.
3) Lastly, India’s automaker’s January month sales announcement will begin on February 1st. Generally, auto companies announce their monthly sales figures between the 1st to 3rd of every month.
As aforementioned, The Street is anticipating a growth-oriented and reform-driven budget. Traditionally, the Union Budget has influenced the stock market, based on the various sectors’ trends influenced by government policies and financial plans. According to Angelone. Brokers expect a few stocks in the Infrastructure, Defence, and Energy sectors to focus ahead of the budget.
Here are the Sectors and Stocks Poised to Gain from the Interim Union Budget 2024
Infrastructure Stocks
The India Infrastructure Sector Market size is estimated at ₹204.06 billion in 2024, and is expected to grow at a CAGR of 9.57% to reach $322.27 billion by 2029, growing at a CAGR of 9.57%.
Larsen & Toubro Ltd
On Wednesday, the company shares were quoted at ₹3,494 apiece, down 3.84% on the exchange.
IRB Infrastructure Developers Ltd
The company shares were quoted at ₹65.8 apiece, down 3.28% on the exchange on Wednesday.
KNR Constructions Ltd
On Wednesday, the company shares were trading at ₹274 apiece, up 1.11% on the exchange.
Defence Sector
India has the world’s third-largest defence expenditure, as of 2021, and expects to export equipment worth $15 billion by 2026. As per the Union Budget 2022-23, 25% of defence R&D budget has been earmarked for private industry and start-ups which paved the way for the innovation of new defence technologies in India.
Hindustan Aeronautics Ltd
The company shares were trading at ₹2,996 apiece, down 3.28% on the exchange on Wednesday.
Bharat Electronics Ltd
The company shares were trading at ₹186 apiece, down 0.96% on the exchange on Wednesday.
Bharat Forge Ltd
On Wednesday, the company shares were quoted at ₹1,234 apiece, up 2.06% on the exchange.
Energy sector
India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 423.35 GW as of July 31, 2023. The India Power Market is expected to grow at a CAGR of 8.80% by 2029.
Adani Green Energy
The company shares were quoted at ₹1,679 apiece, down 0.04% on the exchange on Wednesday.
Gujarat Gas Ltd
On Wednesday, the company shares were quoted at ₹572 apiece, up 3.11% on the exchange.
Tata Power Company Ltd
On Wednesday, the company shares were quoted at ₹388 apiece, up 1.24% on the exchange.
Railway sector
In the recent trading sessions, railway stocks experienced a significant surge following the revelation of news about the potential allocation of Rs 2.8-3 lakh crore in the Interim Budget 2024-25 for the Railways.
This allocation aims to sustain the current capital expenditure momentum, surpassing the ₹2.4 lakh crore provided in the 2023-24 Budget Estimate.
The proposed budget also includes provisions for the introduction of new Vande Bharat trains, Additionally, the government’s ambitious projects, including the bullet train, are expected to continue attracting substantial capital investment in the railway sector.
Indian Railway Finance Corp Ltd
On Wednesday, the company shares were quoted at ₹174 apiece, up 4.50 % on the exchange.
Railtel Corporation of India Ltd
The company shares were trading at ₹437 apiece, up 3.15% on the exchange on Wednesday.
Indian Railway Catering & Tourism Corporation Ltd
The company shares were trading at ₹973 apiece, up 0.88% on the exchange on Wednesday.
Ircon International Ltd
On Wednesday, the company shares were quoted at ₹236 apiece, up 0.55 % on the exchange.
Automobile sector
India is the world’s third-largest Automobile market. India’s Automotive Market was valued at $100 billion in 2021 and is expected to grow at a CAGR of 8.1% to reach $160 billion in 2027.
The upcoming Budget may introduce various benefits, such as possible adjustments in tax brackets and attractive incentives designed to stimulate economic growth, particularly in rural areas.
An upswing in rural consumption could contribute to increased discretionary spending, benefiting rural markets and entry-level four-wheeler Original Equipment Manufacturers. Sharekhan reported.
Hero MotoCorp Ltd
The company shares were trading at ₹4,619 apiece, up 0.67% on the exchange on Wednesday.
Maruti Suzuki India Ltd
On Wednesday, the company shares were quoted at ₹10,131 apiece, up 1.81 % on the exchange.
Escorts Kubota Ltd
The company shares were trading at ₹3,008 apiece, down 0.34% on the exchange on Wednesday.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
