Budget 2024 Impact on Stocks to Watch Today Highlight: On February 1, finance minister Nirmala Sitharaman will present an ‘interim’ budget as the government faces a general election this year, in April-May. There are the top stocks to watch before the interim budget to watch for.
FM says PM is delivering quality teaching Skill India Mission has trained 1.4 crore youth, upskilled and reskillled 54 lakh youth and…
Stocks to watch-
Niit Learning Systems, Veranda Learning Solutions, Aptech, NIIT, Shanti Educational Initiatives , S Chand and Company , Global Education , CL Educate, Career Point, Drone Destination.
The shares of Cochin Shipyard have gained over 6.61% in the last 5 days and almost 37.21% in the last month. However, considering the medium and long term, the stock has shown impressive returns of 179.02% in the last 6 months and almost 286.32% in the last year. Year-to-date, the stock has jumped over 38% until now.
The shares of Mishra Dhatu Nigam have gained over 1.74% in the last 5 days and almost 25% in the last month. However, considering the medium and long term, the stock has shown impressive returns of 45.91% in the last 6 months and almost 155.60% in the last year. Year-to-date, the stock has jumped over 25.03% until now.
The shares of Hindustan Aeronautics have gained over 3.36% in the last 5 days and almost 7.74% in the last month. However, considering the medium and long term, the stock has shown impressive returns of 55.53% in the last 6 months and almost 157.57% in the last year. Year-to-date, the stock has jumped over 7.74% until now.
The shares of BHEL have gained over 8.14% in the last 5 days and almost 16% in the last month. However, considering the medium and long term, the stock has shown impressive returns of 119.48% in the last 6 months and more than 200% in the last year. Year-to-date, the stock has jumped over 15.97% until now.
“The Union Budget 2024 must continue prioritizing technological advancement and digital infrastructure in the media sector, essential for keeping pace with the evolving digital landscape. It should introduce favourable policies and tax incentives to boost local content production and employment. Simplifying regulatory frameworks will also ease operational challenges for media companies, stimulating growth and innovation. Furthermore, government support for startups is crucial in advancing India‘s interactive media industry, propelling the development of next-generation content and technologies. Emphasis on AI, quantum computing, and social digital innovation is expected to significantly enhance business efficiencies. Overall, the budget should recognize and support the media industry’s role in shaping public discourse and its sustainable, inclusive growth,” said Shalabh Saxena, Partner, Grant Thornton Bharat.
The shares of IRCTC have gained over 3% in the last 5 days and almost 12% in the last month. However, considering the medium and long term, the stock has shown impressive returns of 55.75% in the last 6 months and almost 54% in the last year. Year-to-date, the stock has jumped over 8.20% until now.
The shares of Rail Tel have gained over 16.50% in the last 5 days and almost 44% in the last month. However, considering the medium and long term, the stock has shown impressive returns of 155.26% in the last 6 months and more than 243% in the last year. Year-to-date, the stock has jumped over 21.06% until now.
The recent performance of IRFC shares showcases a remarkable uptrend, gaining over 18.44% in the last 5 days and nearly 79% in the last month. Taking a broader perspective, the stock’s medium and long-term returns are striking, with an impressive surge of 406% in the last 6 months and more than 446% in the last year. Year-to-date, the stock has surged by a substantial 73.61%.
Over the last 5 days, RVNL shares have seen a notable increase of 23.14%, and in the last month, the growth has been substantial, reaching almost 70%. Assessing the medium and long-term performance, the stock has delivered exceptional returns, recording a surge of 134.58% in the last 6 months and an impressive 301.59% over the past year. Year-to-date, the stock has jumped by a noteworthy 67.03%.
The shares of Texmaco Rail have gained over 10.11% in the last 5 days and almost 17% in the last month. However, considering the medium and long term, the stock has shown impressive returns of 115% in the last 6 months and almost 267.59% in the last year. Year-to-date, the stock has jumped over 18.68% until now.
“As we approach the union budget, it’s crucial for policymakers to recognize the transformative potential of Central Bank Digital Currencies (CBDCs). Integrating CBDC into our financial infrastructure will enhance transparency, foster financial inclusion, and bolster economic resilience. A forward-thinking budget should prioritize research, collaboration, and innovation in this domain to ensure India‘s leadership in the global fintech landscape. Reforms should also be considered on introducing outcome-based incentives for fintech players who contribute to the ecosystem, which should encourage financial inclusion for the unbanked, empowering micro-businesses to handle digital currency like CBDC with ease, making it their preferred choice as compared to cash,” said Adelia Castelino, Co-Founder & Managing Director, In-Solutions Global Ltd.
Over the last 5 days, Titagarh Rail Systems shares have seen a notable increase of 3.27%, and in the last month, the growth has been substantial, reaching almost 7.01%. Assessing the medium and long-term performance, the stock has delivered exceptional returns, recording a surge of 63.16% in the last 6 months and an impressive 137.51% over the past year. Year-to-date, the stock has jumped by a noteworthy 6.56%.
The recent performance of Jupiter Wagons shares gained just 1% in the last 5 days and nearly 22.85% in the last month. Taking a broader perspective, the stock’s medium and long-term returns are striking, with an impressive surge of 85.74% in the last 6 months and more than 251.18% in the last year. Year-to-date, the stock has surged by a substantial 23%.
“As the Indian e-commerce market continues to thrive, a robust last-mile infrastructure becomes paramount for seamless and efficient deliveries. Investments in improved road networks, strategically located delivery hubs, and advanced technology solutions for optimal route planning are essential. Particularly crucial in a market with a substantial volume of Cash-on-delivery (COD) orders, enhancing last-mile capabilities not only benefits e-commerce sellers but also offers logistics companies a cost-effective solution, steering away from expensive air deliveries. Additionally, anticipating reduced tax burdens, especially on fuel and operations, would further support the financial sustainability of courier companies, fostering a conducive environment for cost-effective operations. In tandem, advocating for e-commerce-friendly policies can propel the growth of the sector, indirectly benefiting courier companies. Streamlining licensing procedures, minimizing regulatory hurdles, and implementing measures that facilitate the smooth functioning of e-commerce operations will contribute to a thriving logistics ecosystem. Furthermore, recognizing the pivotal role played by small and medium-sized enterprises (SMEs) in the logistics sector, incentivizing their growth through financial support, simplified regulations, and improved access to credit can significantly boost the overall efficiency of e-commerce logistics in India. Finally, changes in taxation policies, especially related to customs duties and tariffs, can substantially impact import costs, providing e-commerce sellers with opportunities to minimize overall expenses and scale up their businesses rapidly,” said Raju Sinha, Chief Business Officer at Fship Logistics.
“We at e-Sprinto eagerly anticipate Union Budget 2024, recognizing the undeniable surge in electric vehicle (EV) demand in India. With EV sales doubling from 2022 to 2023, reaching 89,137 units, the momentum is clear. To complement this growth, we urge a reduction in GST on lithium-ion battery packs and cells from 18% to 5%. Such a move will incentivize OEMs, fostering innovation and affordability in the sector. Additionally, the continuation of the FAME II Subsidy beyond its March 2024 expiration is crucial to sustain customer acceptance and support OEMs. Moreover, compulsory adoption of global ISO norms for battery swapping should be mandated by integrating voluntary IS standards into the Central Motor Vehicle Rules. This step will ensure quality assurance and uniformity in the EV industry, elevating standards for all stakeholders involved in the electric vehicle ecosystem. A forward-looking budget will not only propel the EV revolution but also solidify India’s position as a leader in sustainable mobility,” said Atul Gupta- Co-founder & Director at e-Sprinto
“As we stand at the crossroads of innovation with Union Budget 2024 on the horizon, our anticipation at Superbot goes beyond fiscal measures. We envision a budget that transcends traditional boundaries, streamlining Ease of Investing, catalyzing a robust Startup Funding Scenario, and laying the foundation for profound Digital Transformation within the startup landscape. We look to this budget not just for resource allocation but as a strategic path towards a future where Artificial Intelligence (AI) seamlessly integrates into our startup ecosystem. We anticipate targeted initiatives that propel AI research, development, and adoption, fostering innovation and ensuring global competitiveness,” said Sarvagya Mishra, Co-founder & Director at Superbot .
One of the golden rules of the market is “Never time the Market”. The most popular method of investing among retail investors is to invest via SIPs – And there is data to prove this – where a SIP started at the top of a market in 2008 vis-à-vis one which was started at the low of the market in 2009 has delivered a XIRR with only a marginal difference. So in the long term it doesn’t really matter when you start investing – especially if it’s an index fund or a well managed active fund.
However, it’s also a fact that investing in stock markets is a psychological game. The investors’ behavioural pattern determines the returns. We always have a 20/20 vision when we look back at the opportunities available but it’s important to gauge how we would have behaved in the midst of a said situation. Someone who had invested at the peak in January 2008 at around Nifty ~6350 would have witnessed the portfolio erode 57 pct by December 2008 at Nifty ~2750.
Also Read: Navigating market uncertainties: Lessons on patience, psychology, and prudent investments
India, with its colossal information technology workforce, a thriving research community, and a burgeoning technology ecosystem, stands poised at the forefront of global artificial intelligence (AI) development. The surging demand for Software as a Service (SaaS) products and services infused with AI has notably catapulted this sector into the spotlight. Recognizing the transformative potential of AI in reshaping economies, the government think-tank NITI Aayog took a crucial step by unveiling the National Strategy on Artificial Intelligence in 2018.
NITI Aayog, in its forward-looking approach, advocated the creation of Centres of Excellence (CoEs) to fortify AI development and stimulate application-based research. Fast forward five years, and AI has not only made its presence felt across sectors but has secured a recurring mention in the Union Budget, the country’s most crucial financial document. In presenting the Union Budget 2023-24, Finance Minister Nirmala Sitharaman articulated a vision to ‘Make AI in India and Make AI work for India,’ signalling a commitment to harnessing AI’s potential for technological renaissance.
Also Read: Decoding AI sector’s Union Budget 2024 Wishlist for a Technological Renaissance
In anticipation of the Union Budget 2024–25, Axis Securities has provided a detailed outlook on key sectors and expectations, encompassing higher capital expenditures, increased rural spending, and fiscal consolidation. The brokerage identifies several sectors poised to benefit from the upcoming budgetary allocations.
Power, Utilities, and Renewables are anticipated to receive additional support, with a particular focus on companies in the Railway, Infrastructure, and Capital Goods sectors. The brokerage foresees positive impacts on FMCG and Autos driven by augmented rural spending.
Also Read: Axis Securities highlights five key sectors that may benefit from this interim budget 2024
The Union Budget has long been a significant influencer in the Indian market, often synonymous with heightened market volatility. Over the past 24 years, specifically during budget sessions on February 1, data reveals that only in 7 instances did the Indian market move less than 1 percent on the budget day.
In the most recent budget session on February 1, 2023, Indian indices experienced a mixed outcome after an extremely volatile session. The Sensex closed 158 points, or 0.27 percent, higher at 59,708.08, while the Nifty ended at 17,616.30, down 46 points, or 0.26 percent. Notably, this marked the first time since 2018 that Indian indices moved less than one percent on the budget day, with the market ending nearly flat in 2018, down just 0.1 percent.
Also Read: Union Budget Trends: Market moved less than 1% in just 7 of last 24 budget sessions
Jefferies speculates that post-election measures, such as higher capital gains tax, may be implemented during the year. Additionally, the brokerage foresees an increase in disinvestment post-elections, leveraging the strong performance of PSU stocks in sectors like railways and defence.
Despite these challenges, Jefferies remains optimistic about the capex cycle, emphasizing that 75% of the capex in the economy is driven by housing and private corporate activities, both of which have considerable upside potential over the next few years.
Also Read: Railway and Defence stocks: Is it a good time to bet on, Find out what Jefferies suggests