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As we approach the interim budget there is growing optimism among traders and investors especially with the 2024 parliamentary elections on the horizon. On 1 February, Union Finance Minister Nirmala Sitharaman is set to present the budget for the sixth consecutive time.
Before the interim budget2024, investors are closely watching various industries. Here are a few industries that are worth keeping an eye on:
Real Estate
In the fiscal year 2023-24, real estate sector showcased resilience with sales nearly reaching 90% of pre COVID levels in certain cities. Real estate sector is expected to be a key focus in the upcoming budget. Expected announcements include a possible increase in benefits for home loan interest, changes in rules regarding GST input tax credit and adjustments to the upper limit for affordable housing. These actions are meant to attract sincere homebuyers and encourage the demand for housing.
Consumption
Consumption sector is another crucial area to monitor. With the upcoming elections in mind, the government may introduce populist measures such as lower tax rates and increased allocations for schemes like PM Kisan and MNREGA. These actions might increase people’s monthly disposable income, indirectly helping the consumption sector. Retail industry expects measures that promote growth, such as supportive policies, simplified regulations, and favorable GST norms to foster its development.
Infrastructure:
Infrastructure sector, encompassing railways, highways, ports, airports, and more, has seen substantial budget allocation growth in the past. Infrastructure capex increased to ₹10 lakh crore a 33% rise in the previous budget. This year’s interim budget is likely to focus on boosting economic growth by increasing capital investment (capex) in areas such as highways, railways, and urban infrastructure. Railway sector may face a surge in capex for expanding networks, high speed rail expansion and introducing more Vande Bharat trains. Additionally road and highway ministry could see a double digit increase in capex allocation, reflecting the government’s increased emphasis on highway and urban infrastructure development.
It’s crucial to keep an eye on these sectors and related stocks as the interim budget unfolds. But before investing investors must research about companies fundamental and technical analysis.
