Budget 2024: Defence, railways, infra, renewable energy sectors will be in focus, say analysts

Market investors are now eagerly waiting for Finance Minister Nirmala Sitharaman to present the full budget for FY 2025. According to media reports, the government will present the budget in the third week of July, although no official announcement has been made yet.

Experts believe that the Indian stock market has maintained a positive trend since the elections, moving gradually upwards every week. On Friday, profit-booking at higher levels once again hit the Indian stock market, causing the benchmarks, Sensex and Nifty 50, to close lower on Friday, June 28, snapping their four-day winning streak.

Vinod Nair, Head of Research, Geojit Financial Services, said, “Indian benchmark indices gained this week despite mixed cues from global markets, especially inflation concerns. Investors focused primarily on large-cap stocks, resulting in underperformance of the mid- and small-cap segments. The IT sector in particular showed a significant recovery, with private banks outperforming public sector banks in the banking segment.”

Which areas will be in focus before Budget 2024?

According to Ravi Singh, senior vice president, retail research, Religare Broking Ltd, investments in infrastructure will focus on sustainability, aiming to modernise transport networks and improve environmental outcomes.

“Energy policies are expected to focus on renewable sources, which will align with global sustainability goals and reduce carbon emissions. Not to forget the defence and railway sectors, where more capital expenditure will be the focus. Developments in these sectors 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 estimates that the budget will have a positive impact on several domestic sectors, including affordable housing, capital expenditure, consumer goods and rate-sensitive sectors. However, it feels that information technology and pharma will lack significant catalysts.

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

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