Several sectors are anticipated to rally in response to the upcoming Budget 2024 in India. Key sectors expected to benefit include:
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Infrastructure: The government is likely to increase capital expenditure on public infrastructure projects, including roads, railways, and urban development, which could benefit companies in construction and related industries.
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Defence: With a focus on indigenization and boosting domestic manufacturing, the defence sector is expected to see significant investment and policy support.
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Public Sector Undertakings (PSUs): Anticipated announcements on privatization and stake sales could drive growth in this sector. Government plans to enhance financial stability and operational efficiency for PSUs are also expected.
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Renewable Energy: The budget is likely to prioritize renewable energy sources such as solar and green hydrogen, aligning with India’s goal to meet a significant portion of its energy needs from renewables by 2030.
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Automobiles and FMCG: Measures to boost rural consumption and spending power could benefit the auto and fast-moving consumer goods sectors. This includes potential tax cuts and welfare schemes aimed at increasing rural income and consumption.
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Banking, Financial Services, and Insurance (BFSI): Increased government spending on capital projects and infrastructure development is expected to benefit the BFSI sector through higher credit growth and extended support for housing schemes.
These sectors are poised for growth as the government aims to boost economic activity and address key structural challenges in the upcoming budget.
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