Budget 2024 Stock Market Expectations Highlights: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.
16:20 (IST) 31 Jan 2024
Markets at close
The benchmark equity indices closed in positive territory. The NSE Nifty 50 closed 0.95% higher to settle at 21,725.70, while the BSE Sensex gained 0.86% to settle at 71,752.11.
15:57 (IST) 31 Jan 2024
AI Sector’s Union Budget 2024 Wishlist for a Technological Renaissance
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
15:22 (IST) 31 Jan 2024
Expert Expectation on IT Sector from Interim Budget 2024
“At Yatiken Software Solutions, our expectations for Union Budget 2024 align with key areas crucial for the IT sector’s growth. We look forward to potential allocations for EV infrastructure development, presenting exciting opportunities in software for EV systems, IoT integration for smart charging, and data analytics for EV performance optimization. Additionally, we hope for a significant GST relaxation for the service sector, leading to a reduction in the 18% GST rate. This move would alleviate operational costs for IT firms, enhancing global competitiveness and providing resources for further innovation and talent development. Besides that, initiatives for upskilling programs in emerging technologies such as AI, blockchain, and cybersecurity are critical for the continuous growth of the tech industry. Collaborative efforts between educational institutions and industry partnerships can ensure a skilled workforce. Likewise, the establishment of tech-focused Special Economic Zones (SEZs) holds promise, offering tax benefits and infrastructure support to attract foreign investments and foster innovation in the IT sector. Moreover, investments in internet adoption and 5G deployment, especially in healthcare, could create opportunities for developing applications in telemedicine, remote monitoring, and data-driven healthcare solutions. These expectations, if addressed in the Union Budget, have the potential to remarkably shape the trajectory of the IT sector by fostering innovation, supporting infrastructure development, and enhancing skills in emerging technologies,” said Alok Kashyap, Founder and CEO at Yatiken Software Solutions.
14:59 (IST) 31 Jan 2024
TCS share sustains to give positive returns in last one year
Over the last 5 days, TCS shares have seen a notable downfall of 1.68%, and in the last month, the growth has been substantial, up by just 1%. Assessing the medium and long-term performance, the stock has delivered exceptional returns, recording a surge of 12.17% in the last 6 months and an 11.77% gain over the past year. Year-to-date, the stock has jumped by just 0.70%.
14:16 (IST) 31 Jan 2024
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.
14:05 (IST) 31 Jan 2024
Expert Expectation on Commodity Sector from Interim Budget 2024
“To be vocal for local, and to facilitate ‘Make in India’ and promote ‘Ease of doing business’, the FinMin must look into amending the present SEZ Act so that SEZs could be better integrated in the domestic market. The budget should look at permitting ‘reverse job-work’, which allows SEZs to sell in the domestic market where all duties relinquished on raw materials could be paid back. The move will prevent companies present in these zones from being disadvantaged due to a lack of access to the entire market. It will allow them to sell domestically, also offering a waiver on all duties on raw materials. The move will also lead to further strengthening the SEZs of India, which have emerged as major export hubs in the country. However, in recent times it has started losing its value due to the imposition of minimum alternate tax and the introduction of a sunset clause to end fiscal incentives. This has resulted in many SEZs lying vacant, hurting the economic growth. The policy will put SEZs on an equal footing with non-SEZ units that enjoy the benefits of zero or reduced import duties through free trade agreements,” said Mr. Colin Shah, MD, Kama Jewelry.
13:44 (IST) 31 Jan 2024
DLF yields more than 100% in last one year
The recent performance of DLF shares shows that the shares gained by just 1% in the last 5 days and nearly 9% in the last month. Taking a broader perspective, the stock’s medium and long-term returns are striking, with an impressive surge of 51.80% in the last 6 months and more than 123% in the last year. Year-to-date, the stock has jumped by 8.82% till date.
13:27 (IST) 31 Jan 2024
Ajmera Realty & Infra India shares doubles investors money in last one year, gains 111% in last one year
Over the last 5 days, Ajmera Realty & Infra India shares have seen a notable decrease of just 1%, but in the last month, the growth has been substantial, reaching almost 28.42%. Assessing the medium and long-term performance, the stock has delivered exceptional returns, recording a surge of 46.46% in the last 6 months and an impressive 111.39% over the past year. Year-to-date, the stock has jumped by a noteworthy 28.42%.
12:29 (IST) 31 Jan 2024
Axis Securities outlines key sector expectations for 2024–25 in Pre-Budget report
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
11:56 (IST) 31 Jan 2024
Know what Ambareesh Baliga explains on the post-budget investment strategies and insights on how one should navigate the markets
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
11:39 (IST) 31 Jan 2024
Union Budget Trends for Market
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.
11:01 (IST) 31 Jan 2024
Expert Expectations on FMCG Sector from Interim Budget 2024
“We anticipate that the government will provide more funding to assist the FMCG sector in the upcoming 2024 budget. The increased budget allocation can be seen as a reflection of the government’s initiative to support Indian industry. Such financial injections are not merely monetary infusions but proof of the government’s proactive commitment to nurturing indigenous industries. Increased funding commitments are essential for supporting innovation, which in turn will strengthen the startup scene and provide the FMCG industry’s R&D projects the much-needed push. We also hope to see a completely changed fiscal environment that encourages innovation and growth. The possibility of a higher income tax bracket will appear as a ray of hope which will indicate a business-friendly climate. This expected change is believed to serve as an engine, bringing fresh energy and resilience to the FMCG industry while promoting growth. The industry’s expectations merge around a vision of strong support mechanisms beyond mere financial incentives. The FMCG sector’s goals for the 2024 budget depend on larger income tax slabs, more grants, and a strong commitment to fostering innovation. The focus on using weighted deductions to incentivise R&D highlights a dedication to raising the FMCG sector’s level of competitiveness. To put it briefly, the FMCG business may experience a paradigm shift as a result of the upcoming Budget. These combined actions will undoubtedly create a trajectory of steady expansion, bringing the FMCG industry into a dynamic period of increased competition on the Indian scene,” said Shammi Agarwal, Director, Pansari Group
09:40 (IST) 31 Jan 2024
Jefferies on Railways and Defence
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.
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Interim Budget 2024 and Stock Market Expectations
The finance minister of India, Nirmala Sitharaman, is set to present an 'interim' budget in February 2024 due to the upcoming general election. The stock market tends to pay close attention to budget announcements as they can have a significant impact on various sectors and companies. Investors often analyze the budget to identify potential opportunities and risks.
AI Sector's Wishlist for Union Budget 2024
The AI sector in India has been growing rapidly, and there are high expectations for the Union Budget to support its development. The National Strategy on Artificial Intelligence, introduced by NITI Aayog in 2018, emphasized the importance of AI in reshaping the economy. In the previous Union Budget, Finance Minister Nirmala Sitharaman expressed a vision to 'Make AI in India and Make AI work for India.' The sector hopes for continued support in terms of funding for research, the establishment of Centres of Excellence (CoEs), and initiatives for upskilling programs in emerging technologies like AI, blockchain, and cybersecurity.
IT Sector Expectations from Interim Budget 2024
The IT sector has specific expectations from the interim budget. Companies like Yatiken Software Solutions are looking for potential allocations for electric vehicle (EV) infrastructure development, opportunities in software for EV systems, IoT integration for smart charging, and data analytics for EV performance optimization. Additionally, they hope for a significant Goods and Services Tax (GST) relaxation for the service sector, reduction in operational costs, and initiatives for upskilling programs in emerging technologies.
Performance of Specific Stocks
The article mentions the performance of several stocks in the market. For example, TCS shares have shown positive returns over the past year, while Texmaco Rail shares have gained significantly in the medium and long term. DLF shares have also delivered impressive returns, and Ajmera Realty & Infra India shares have doubled investors' money in the last year. It's important to note that stock performance can be influenced by various factors, including market conditions, company performance, and investor sentiment.
Expert Expectations on Commodity Sector from Interim Budget 2024
Experts in the commodity sector have specific expectations from the interim budget. They suggest amending the present Special Economic Zone (SEZ) Act to better integrate SEZs into the domestic market. They also propose permitting 'reverse job-work,' which would allow SEZs to sell in the domestic market and receive a waiver on all duties on raw materials. These measures aim to strengthen SEZs, which have emerged as major export hubs in India.
Union Budget Trends and Market Volatility
The Union Budget has historically had a significant impact on the Indian market, often leading to increased volatility. However, recent data suggests that market movements on the budget day have been mixed. In the most recent budget session in 2023, Indian indices experienced a relatively flat outcome, with the Sensex closing higher and the Nifty ending slightly lower. It's important to note that market reactions to the budget can vary based on a range of factors, including market sentiment and the specific measures announced.
Expert Expectations on FMCG Sector from Interim Budget 2024
Experts in the Fast-Moving Consumer Goods (FMCG) sector anticipate increased funding and support from the government in the upcoming budget. They believe that higher budget allocations reflect the government's commitment to supporting Indian industries. The FMCG sector expects larger income tax slabs, more grants, and a strong commitment to fostering innovation. They also emphasize the importance of incentivizing research and development (R&D) through weighted deductions to enhance competitiveness.
Jefferies on Railways and Defence
According to Jefferies, post-election measures such as higher capital gains tax may be implemented. The brokerage also foresees an increase in disinvestment after the elections, particularly in sectors like railways and defense. Despite these challenges, Jefferies remains optimistic about the capital expenditure (capex) cycle, highlighting the potential upside in housing and private corporate activities, which drive 75% of the capex in the economy.
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