The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has brought forth several opportunities for investors. Certain sectors and stocks are poised to benefit significantly with a focus on growth and reforms.

Here’s a look at some of the best stocks to Pick on Union Budget 2024

1. Infrastructure Sector:

The Union Budget 2024 has placed a significant emphasis on infrastructure development, recognizing it as a cornerstone for economic growth. The government’s continued focus on the National Infrastructure Pipeline (NIP) and increased capital expenditure is expected to drive substantial growth in this sector.

Potential Budget Impact

1. Increased Capital Expenditure: The budget has allocated substantial funds for infrastructure projects, including roads, railways, and urban development. This is expected to boost economic activity and create jobs.
2. Public-Private Partnerships (PPP): Encouragement of PPP models to leverage private sector efficiency and investment in public infrastructure projects.
3. Green Infrastructure: Emphasis on sustainable and green infrastructure projects, aligning with global trends towards sustainability.

Top Stocks to Focus On

1. Larsen & Toubro (L&T): As India’s largest engineering and construction company, L&T is well-positioned to benefit from increased public capital expenditure. Its diversified portfolio, including projects in defence and renewable energy, makes it a robust choice.
2. IRB Infrastructure Developers: Known for its efficiency in road development, IRB is expected to gain from the government’s focus on improving road connectivity.
3. Power Grid Corporation of India: A leading electric power transmission company, Power Grid is set to benefit from increased investments in the power sector.
4. NTPC Limited: India’s largest energy conglomerate, NTPC, is expected to gain from the government’s focus on expanding power generation capacity.
5. GMR Infrastructure: Known for its airport and energy projects, GMR Infrastructure is likely to see growth with the government’s push for infrastructure development.
6. Adani Ports and Special Economic Zone (APSEZ): As India’s largest private multi-port operator, APSEZ stands to benefit from increased trade and port modernization initiatives.
7. Dilip Buildcon: A major player in road construction, Dilip Buildcon is expected to gain from the government’s focus on enhancing road infrastructure.
8. Ahluwalia Contracts: Specializing in construction and engineering, Ahluwalia Contracts is poised to benefit from increased infrastructure spending.
9. KNR Constructions: Known for its road and highway projects, KNR Constructions is expected to see growth from the government’s infrastructure initiatives.
10. PNC Infratech: With a strong presence in road and highway construction, PNC Infratech is well-positioned to capitalize on the budget’s focus on infrastructure.

2. Defence Sector

The Union Budget 2024 has placed a significant emphasis on the defence sector, recognizing its importance for national security and economic growth. The government’s focus on modernization and indigenization of defence equipment is expected to drive substantial growth in this sector.

Potential Budget Impact

1. Increased Budget Allocation: The budget has allocated a higher amount for defence capital expenditure, which is expected to boost the procurement of advanced equipment and technology.
2. Indigenization and ‘Make in India’: Emphasis on self-reliance in defence production, encouraging domestic companies to participate in defence manufacturing.
3. Research and Development: Increased funding for R&D in defence technology to foster innovation and reduce dependency on imports.

Top Stocks to Focus On

1. Hindustan Aeronautics Limited (HAL): As India’s largest aerospace and defence company, HAL has a robust order book and is expected to secure more orders for its products.
2. Bharat Electronics Limited (BEL): A leading defence electronics company, BEL is poised to benefit from rising demand for its products from both domestic and export markets.
3. Bharat Dynamics Limited (BDL): Specializing in missile systems, BDL is expected to gain from increased defence spending and modernization efforts.
4. Cochin Shipyard Limited: Known for its shipbuilding and repair capabilities, Cochin Shipyard is likely to benefit from the government’s focus on enhancing naval capabilities.
5. Mazagon Dock Shipbuilders Limited: A major player in shipbuilding, Mazagon Dock is expected to see growth with the government’s push for indigenization and modernization of naval forces.
6. Solar Industries India Limited: Specializing in explosives and ammunition, Solar Industries is set to benefit from increased defence procurement.
7. Astra Microwave Products Limited: Known for its expertise in microwave components, Astra Microwave is expected to gain from the increased focus on advanced defence technologies.
8. Garden Reach Shipbuilders & Engineers Limited: With a strong order book and expertise in shipbuilding, Garden Reach is well-positioned to capitalize on the budget’s initiatives.
9. Data Patterns (India) Limited: Specializing in electronic systems for defence and aerospace, Data Patterns is expected to benefit from increased defence spending.
10. Paras Defence and Space Technologies Limited: Known for its defence and space engineering capabilities, Paras Defence is poised to gain from the government’s focus on indigenization.

3. Energy Sector

The Union Budget 2024 has placed a significant emphasis on the energy sector, recognizing its critical role in driving economic growth and sustainability. The government’s focus on both traditional and renewable energy sources is expected to create substantial opportunities for growth and investment.

Potential Budget Impact

1. Increased Investment in Renewable Energy: The budget has allocated significant funds to boost renewable energy projects, including solar, wind, and hydroelectric power. This aligns with India’s commitment to achieving its climate goals and reducing carbon emissions.
2. Support for Traditional Energy Sources: Despite the push for renewables, the budget also recognizes the importance of traditional energy sources like coal, oil, and natural gas, ensuring a balanced energy mix.
3. Infrastructure Development: Enhanced infrastructure for energy distribution and storage, including smart grids and energy storage systems, is a key focus area.
4. Incentives for Green Energy: Tax incentives and subsidies for companies investing in green energy projects are expected to drive growth in this sector.

Top Stocks to Focus On

1. Adani Green Energy: A leading player in the renewable energy space, Adani Green Energy is expected to benefit from government incentives and increased investment in solar and wind projects.
2. Tata Power: With a strong focus on renewable energy projects, Tata Power is well-positioned to capitalize on the budget’s green energy initiatives.
3. NTPC Limited: India’s largest energy conglomerate, NTPC, is expected to gain from the government’s focus on expanding power generation capacity, including renewable energy sources.
4. Power Grid Corporation of India: A leading electric power transmission company, Power Grid is set to benefit from increased investments in the power sector and infrastructure development.
5. Reliance Industries: With its diversified energy portfolio, including significant investments in renewable energy, Reliance Industries is poised to benefit from the budget’s focus on energy sustainability.
6. Coal India Limited: As the largest coal producer in India, Coal India is expected to benefit from continued support for traditional energy sources.
7. Indian Oil Corporation (IOC): A major player in the oil and gas sector, IOC is likely to see growth with the government’s balanced approach to energy investments.
8. JSW Energy: Known for its diversified energy portfolio, including thermal and renewable energy, JSW Energy is well-positioned to capitalize on the budget’s initiatives.
9. Suzlon Energy: A key player in the wind energy sector, Suzlon Energy is expected to benefit from increased investment in renewable energy projects.
10. Sterling and Wilson Solar: Specializing in solar energy projects, Sterling and Wilson Solar is poised to gain from the government’s push for solar power development.

4. FMCG Sector

The Union Budget 2024 has placed a significant emphasis on boosting rural consumption and supporting low-income households, which is expected to have a positive impact on the Fast-Moving Consumer Goods (FMCG) sector. The government’s focus on increasing disposable income and enhancing rural development is likely to drive growth in this sector.

Potential Budget Impact

1. Increased Rural Spending: The budget has allocated substantial funds for rural development and social sector schemes, which are expected to boost rural consumption and drive demand for FMCG products.
2. Tax Relief and Incentives: Potential tax cuts, expansion in tax slabs, and increased limits for tax-saving investments under Section 80C are likely to increase disposable income, benefiting FMCG companies.
3. Support for Domestic Production: Incentives to boost domestic production of essential commodities could help reduce raw material costs for FMCG companies.
4. Infrastructure Development: Enhanced infrastructure in rural areas, including better connectivity and storage facilities, is expected to improve the distribution and reach of FMCG products.

Top Stocks to Focus On

1. Hindustan Unilever Limited (HUL): As a major player in the FMCG sector, HUL is expected to see increased demand from rural areas due to higher disposable income and improved infrastructure.
2. Dabur India: Known for its strong presence in the rural market, Dabur is likely to benefit from the government’s focus on boosting rural consumption.
3. Godrej Consumer Products: With a diverse product portfolio and strong rural presence, Godrej Consumer Products is well-positioned to capitalize on the budget’s initiatives.
4. Nestle India: A leading player in the FMCG sector, Nestle India is expected to gain from increased consumer spending and improved rural infrastructure.
5. Marico: Known for its popular brands in the hair care and edible oil segments, Marico is likely to benefit from higher rural demand and increased disposable income.
6. ITC Limited: Despite potential challenges from increased excise duty on cigarettes, ITC’s diversified FMCG portfolio is expected to benefit from the budget’s focus on rural development.
7. Britannia Industries: With a strong presence in the bakery and dairy segments, Britannia is well-positioned to capitalize on increased rural consumption.
8. Colgate-Palmolive (India): Known for its oral care products, Colgate-Palmolive is expected to benefit from higher rural demand and improved distribution networks.
9. Emami Limited: With a strong focus on personal care products, Emami is likely to see growth from increased rural spending and enhanced infrastructure.
10. Procter & Gamble Hygiene and Health Care: A major player in the health and hygiene segment, P&G is expected to benefit from the budget’s initiatives to boost rural consumption and improve infrastructure.

5. Affordable Housing

The Union Budget 2024 has placed a significant emphasis on affordable housing, recognizing its importance for social stability and economic growth. The government’s focus on providing housing for all and supporting low-income households is expected to drive substantial growth in this sector.

Potential Budget Impact

1. New Interest Subsidy Scheme: The budget is expected to introduce a new ₹60,000 crore interest subsidy scheme for urban poor and middle-class homebuyers. This scheme aims to make housing more affordable by offering interest subvention on home loans.
2. Increased Allocation for Housing Projects: Significant funds have been allocated for affordable housing projects under the Pradhan Mantri Awas Yojana (PMAY), aiming to achieve the goal of ‘Housing for All’ by 2024.
3. Tax Incentives: Potential tax benefits for both homebuyers and developers to encourage investment in affordable housing.
4. Infrastructure Development: Enhanced infrastructure in urban and semi-urban areas to support new housing projects, including better connectivity and amenities.

Top Stocks to Focus On

1. Can Fin Homes: With a focus on affordable housing finance, Can Fin Homes is expected to benefit from the new subsidy scheme and increased demand for home loans.
2. PNB Housing Finance: Another key player in the affordable housing finance sector, PNB Housing Finance is well-positioned to capitalize on the budget’s initiatives.
3. Home First Finance Company India Limited: Specializing in affordable housing finance, Home First Finance is likely to see growth from increased government support and demand.
4. Housing Development Finance Corporation (HDFC): As one of the largest housing finance companies in India, HDFC is expected to benefit from the overall growth in the housing sector.
5. Godrej Properties: Known for its focus on affordable and mid-income housing projects, Godrej Properties is well-positioned to capitalize on the budget’s initiatives.
6. Prestige Estates Projects: With a strong presence in the affordable housing segment, Prestige Estates is likely to benefit from increased government support and demand.
7. Sobha Limited: Known for its quality construction and affordable housing projects, Sobha Limited is expected to see growth from the budget’s focus on housing.
8. Brigade Enterprises: With a diversified portfolio including affordable housing, Brigade Enterprises is well-positioned to benefit from the budget’s initiatives.
9. Oberoi Realty: Although primarily known for luxury projects, Oberoi Realty’s foray into affordable housing could benefit from the government’s focus on this segment.
10. DLF Limited: As one of the largest real estate developers in India, DLF’s initiatives in affordable housing are expected to gain from the budget’s focus on housing for all.

Disclaimer

The information provided in this blog is for informational purposes only and does not constitute financial advice. The stocks mentioned are based on the potential impact of the Union Budget 2024 and are not recommendations to buy or sell. Investing in the stock market involves risks, including the loss of principal. It is important to conduct your own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any financial losses or damages that may result from the use of this information.