Budget 2024: Date for the presentation of the Union Budget 2024 has been fixed on 23rd July 2024. This means we are just six sessions away from the budget presentation, and hence, intraday traders are expected to remain extra cautious in the coming week.
According to stock market experts, Union Finance Minister Nirmala Sitharaman is scheduled to present a growth-oriented budget; hence, infrastructure, banking, auto, and consumer durable segments will be in focus. As company results are also underway for the Q1FY25, they advised intraday traders to maintain a stock-specific approach with a particular emphasis on the above-mentioned segments.
Before the Budget 2024 date, Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, advises caution due to the expected volatility. While averages show a slight decline before the budget, significant volatility can create opportunities but also heighten risks. In this pre-budget period, it's advisable to buy stocks in sectors that could benefit from the budget, anticipating a post-budget rise. Increased volatility can present opportunities for short-term options traders, who are advised to use strategies like straddles or strangles to capitalize on price swings in either direction.
On segments where a stock-specific approach may yield higher returns, Avimash Gorakshkar, Head of Research at Profitmart Securities, said, “As the Indian economy has delivered stellar performance in FY24 and Modi 3.0 Government is committed to achieving $10 trillion target by the end of next five years, FM Sitharaman is expected to remain focused on keeping the fiscal deficit under control. In that case, the government's earnings are expected to shoot up, which qualifies banking and auto segment stocks as highly attractive. In the wake of rising income, one's expenditure is expected to shoot up, which is expected to benefit consumer durable companies.”
Gorakshkar said that FM Sitharamn is expected to push job creation as well. In that case, the infrastructure segment will continue to focus on the BJP-led NDA government in New Delhi. One should monitor the quality of stocks in the abovementioned segments ahead of the Union Budget 2024 date, fixed on 23rd July 2024.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
