FY2024 Budget: The date for the presentation of the Union Budget 2024 has been fixed as July 23, 2024. This means that there are just six sessions left until the budget is announced and hence, intraday traders are expected to remain particularly cautious over the next week.
According to stock market experts, Union Finance Minister Nirmala Sitharaman is expected to present a growth-oriented budget, which will see focus on infrastructure, banking, automobile and consumer durables sectors. With corporate earnings for Q1FY25 also underway, experts advised intraday traders to maintain a stock-specific approach with special focus on the above-mentioned sectors.
Stock market tips ahead of Budget 2024 announcement
Ahead of the FY24 Budget announcement date, Amit Goel, Co-founder and Chief Global Strategist, Pace 360, advises investors to be cautious of expected volatility. While average stock prices tend to fall slightly before the budget announcement, significant volatility can create opportunities but also increases risks. At this time before the budget announcement, it is prudent to buy stocks from sectors that will benefit from the budget in anticipation of a post-budget rally. Increased volatility can be an opportunity for short-term option traders and strategies such as straddles and strangles are recommended to take advantage of price movements in either direction.
Speaking about areas where a stock-specific approach could yield higher returns, Abhimash Gorakshkar, Head of Research, ProfitMart Securities said, “With the Indian economy performing stellar in FY24 and the Modi 3.0 government committed to achieving the $10 trillion target in the next five years, we expect Finance Minister Sitharaman to continue to focus on containing the fiscal deficit. In that case, government revenue is expected to surge making stocks in the banking and auto sectors very attractive. With revenues rising, spending is also expected to surge and consumer durable companies are expected to benefit.”
Gorakshkar said Finance Minister Sitaram is also expected to give a push for job creation. In that case, the infrastructure sector will remain the focus of the BJP-led NDA government in New Delhi. The equity quality of the above sectors should be monitored before the presentation date of the Union Budget 2024, which is finalized on July 23, 2024.
Disclaimer: The views and recommendations provided in this analysis are those of the individual analyst or brokerage firm, and not of Mint. Because market conditions change rapidly and individual circumstances may differ, investors are strongly advised to consult with a qualified professional before making any investment decisions.
