Budget 2024: Defence, railways, infra, renewable energy sectors to remain in focus, say analysts

Market investors are now eagerly waiting for the Finance Minister Nirmala Sitharaman to table the full budget for FY25. According to media reports, the government will present the budget in the third week of July, however, no official announcement has been made yet.

Experts believe that the Indian stock market has maintained a positive tone since the elections, gradually inching higher each week. On Friday, profit booking at higher levels impacted the Indian stock market once again, causing the benchmarks, Sensex and Nifty 50, to end with losses on Friday, June 28, breaking their four-day winning streak.

“Indian benchmark indices recorded gains this week despite mixed signals from the global market, particularly regarding inflation concerns. Investor attention was predominantly on large-cap stocks, resulting in underperformance of mid and small-cap segments. The IT sector especially showed notable recovery along with private banks which outperformed public sector banks in the banking segment,” said Vinod Nair, Head of Research, Geojit Financial Services.

Which sectors to remain in focus ahead of Budget 2024?

According to Ravi Singh, SVP- Retail Research, Religare Broking Ltd, Infrastructure investment is set to focus on sustainability, aiming to modernize transport networks and improve environmental outcomes.

“Energy policies are anticipated to emphasize on renewable sources, aligning with global sustainability goals and reducing carbon emissions. Not to forget Defence and Railway pockets, where emphasis would be on more Capex. These sectors' development will be closely watched as stakeholders await the budget's impact on economic growth and recovery strategies,” Singh told Livemint.

Brokerage firm Jefferies India Pvt Ltd anticipates that the budget will positively impact several domestic sectors, including affordable housing, capital expenditure plays, consumer goods, and rate-sensitive sectors. However, it expects Information Technology and Pharma to lack significant catalysts.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions