Stock market strategy for Budget 2024: Despite the recent dip in the Indian stock market following weak global market cues on rising tension in the US-China trade war, there is still potential for growth. The Nifty 50 index was down over 125 points, the BSE Sensex nosedived around 400 points, and the Nifty Bank index corrected over 300 points during early morning deals. However, this is not a cause for alarm but rather an opportunity for strategic investment.
According to experts, the Indian stock market has witnessed a trend reversal after sharp selling on Friday. They said the trend may continue till Tuesday as the market is waiting for the Union Budget 2024 by the Modi 3.0 Government. The Union Budget 2024 is a significant event in the financial calendar as it outlines the government's fiscal policies and spending plans for the upcoming year. They said global cues are harmful due to rising tension in the US-China trade war. They said that investors can look at companies that have worked on expanding their CAPEX in recent quarters. They said that the Union Budget is expected to remain a growth-oriented budget, which means railway, infrastructure, energy, oil and power, auto, and banking are prominent segments where one can easily find such listed companies.
Unveiling the stock market strategy ahead of the Union Budget 2024, Sugandha Sachdeva, Founder of SS WealthStreet, shares her insights. Her expertise and experience in the field provide a solid foundation for her predictions. She said, "We expect significant reform measures to foster sustainable growth and enhance social welfare, with strategic allocations toward the agricultural sector, infrastructure, public healthcare, railways, power/renewable energy, real estate, defence, logistics, and tourism. Besides, some revisions in the income tax slabs or an increase in the standard deduction under the new tax regime to increase disposable incomes are expected. Further, measures are expected to balance the fiscal deficit while ensuring sufficient funding for development projects."
On selecting a quality stock ahead of budget 2024, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "One can look at those companies that have worked on its CAPEX expansion and reduction in debt. A debt-free stock with a strong CAPEX history would be an ideal stock to buy today as the Union Budget may fuel such stocks soon." Gorakshkar said that the upcoming Budget is expected to remain a growth-oriented budget; hence, infrastructure and allied segments are expected to benefit from such a budget. He said that a growth-oriented budget and sound conditions in the national economy will also likely create demand in the banking and auto segments.
Highlighting a caution ahead of the Budget 2024, Sugandha Sachdeva said, "Budget 2024 is poised to address the multifaceted needs of the economy while balancing populist measures and fiscal responsibility. Investors should stay informed and cautious, ready to capitalize on opportunities arising from the Budget's announcements while being mindful of potential market corrections."
On shares to buy ahead of the Union Budget 2024, Avinash Gorakshkar said, "One can look at buying M&M and Tata Motors in the auto segment whereas SBI, ICICI Bank, and Axis Bank can be a good bet in the banking segment."
Speaking on shares to buy before the Union Budget 2024, Sugandha Sachdeva said, “Empirical data suggests volatility remains high on the budget day, but we have identified a few stocks that may witness short-term dips yet look to traverse on the higher trajectory from a medium-term perspective.”
Sugandha advised buying SBI Card, Oberoi Realty, RITES, KPIT Tech, and HBL Power with the following suggestions:
1] SBI Card: Buy around ₹680 to ₹685, target ₹840, stop loss ₹595;
2] Oberoi Realty: Buy at ₹1570 to ₹1580, target ₹2050, stop loss ₹1280;
3] RITES: Buy at ₹650 to ₹660, target ₹880, stop loss ₹520;
4] KPIT Tech: Buy at ₹1690 to ₹1695, target ₹2080, stop loss ₹1500; and
5] HBL Power: Buy at ₹540 to ₹550, target ₹765, stop loss ₹460.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
