India aims to reach a $5 trillion economy by 2028. Currently, it ranks as the world’s fifth-largest economy, with an estimated GDP of $3.7 trillion for the fiscal year 2024. Factors like government stability, digital and manufacturing infrastructure, and overall development efforts are key drivers of this growth.
The full-year union budget announcement for FY24-25 is set for July 23rd, a significant event for the markets. Expectations are high for a budget focused on growth and reforms. Historically, the Union Budget has a substantial impact on the stock market, influencing sectors based on government policies and financial strategies.
BofA Securities, a global brokerage firm, anticipates that $6.6 billion will be allocated to increase state capital expenditures in the budget, $9.6 billion will be directed towards initiatives to increase public support and spending, and there are no plans to alter the fiscal deficit target of 5.1% for FY25.
Bofa Securities predicts that the PLI scheme will likely expand, with focused support on sectors like toys and leather goods. Additionally, to boost ‘Make in India’ efforts for railways, the government may introduce a PLI scheme for manufacturing components such as wheels, brakes, and transmission systems.
The analysts at Bofa Securities anticipate that tax reductions, increased subsidies, special aid to states, and extended healthcare coverage could cost between Rs 1.35 trillion to Rs 1.5 trillion. They also expect an 11% nominal GDP growth rate for FY25.
Looking ahead to the budget, the global brokerage firm foresees benefits for sectors like staples & autos, and capital expenditure, including mortgage and power financing, industrials, cement, hospitals, and metals. However, they maintain caution regarding real estate, brokerages, and depositories.
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Here are the stocks recommended by BofA Securities priced under ₹200 to consider for the 2024-25 budget:
Indiabulls Housing Finance Ltd
Indiabulls Housing Finance Ltd is engaged in the business of providing home loans and loans against property. It also provides corporate mortgage loans – lease rental discounting and residential construction finance.
On Tuesday, Indiabulls Housing Finance Ltd shares were trading at ₹170,up 1.8% from the previous close price on the National Stock Exchange.The company has a market valuation of ₹10,170 crores.
Suzlon Energy Ltd
Suzlon Energy Ltd., an end-to-end wind power solutions supplier in India, manufactures wind turbine generators, power generation equipment, and related equipment., Suzlon is a market leader with 111+ wind farms and an installed capacity of over 14,490 MW.
Suzlon Energy Ltd is a renewable energy solutions provider and is in the business of manufacturing, project execution, operation and maintenance of wind turbine generators, and the sale of related components.
On Tuesday, Suzlon Energy Ltd shares were trading at ₹55.2, up 1.12% from the previous close price on the National Stock Exchange. The company has a market valuation of ₹74,642 crores.
NBCC (India) Ltd
NBCC (India) Limited is a Government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs. The company operates in three major segments – Project Management Consultancy, Engineering Procurement and construction, and Real Estate.
On Tuesday,NBCC (India) Ltd shares were trading at ₹191, up 1.44% from the previous close price on the National Stock Exchange. The company has a market valuation of ₹34,344 crores.
IRB Infrastructure Developers Ltd
IRB Infrastructure Developers Ltd (IRB) is India’s first Integrated Multi-National Transport Infrastructure Developer specializing in roads and highways. As India’s largest private toll road and highway infrastructure developer. It also operates in other infrastructure-related business categories such as road maintenance, building, airport development, and real estate.
On Tuesday, IRB Infrastructure Developers Ltd shares were trading at ₹71.7, up 5.18% from the previous close price on the National Stock Exchange. The company has a market valuation of ₹43,318 crores.
GMR Airports Infrastructure Ltd
GMR Infrastructure is mainly engaged in the development, maintenance and operation of airports, the generation of power, coal mining and exploration activities, development of highways, development, maintenance, and operation of special economic zones, and construction business including Engineering, Procurement and Construction (EPC) contracting activities.
On Tuesday, IRB Infrastructure Developers Ltd shares were trading at ₹98.9, up 0.82% from the previous close price on the National Stock Exchange. The company has a market valuation of ₹59,689 crores.
Tata Steel Ltd
Tata Steel Ltd is a well-diversified company. The company is present throughout the steel manufacturing value chain, from mining and processing iron ore and coal to producing and distributing finished products.
On Tuesday, Tata Steel Ltd shares were trading at ₹168, up 1.04% from the previous close price on the National Stock Exchange. The company has a market valuation of ₹2,10,347 crores.
Steel Authority of India Ltd
Steel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of the country’s Central Public Sector Enterprises.
SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products.
On Tuesday, Steel Authority of India Ltd shares were trading at ₹153, up 0.80% from the previous close price on the National Stock Exchange. The company has a market valuation of ₹63,300 crores.
JM Financial Ltd
JM Financial Ltd. is an integrated and diversified financial services group. Its primary businesses include mortgage lending, distressed credit, and asset management. It is also engaged in investment banking and the management of private equity funds.
On Tuesday, JM Financial Ltd shares were trading at ₹101, up 5.82% from the previous close price on the National Stock Exchange. The company has a market valuation of ₹9,613 crores.
Written by Omkar Chitnis
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