Budget 2024-25 was tabled in Lok Sabha on July 23, 2024, by Union Finance Minister Nirmala Sitharaman. It was the seventh consecutive budget presentation of Nirmala Sitharaman as a Finance Minister in the Parliament. Amid the NEET scandal & rage over Agniveer schemes, the Modi Government's 3.0 budget was mostly centered around youths, jobs, and of course two ally states- Bihar & Andhra Pradesh. In the Union Budget 2024-25, the government identified nine priorities- productivity and resilience in agriculture, employment and skilling, social justice, manufacturing & services, urban development, energy security, infrastructure, innovation R&D, and next-generational reforms.
After the Budget 2024 announcement Indian shares reportedly experienced fluctuating movements, alternating between minor gains and losses, coinciding with the presentation of the union budget. Consumer stocks led the benchmarks higher following the government's announcement of financial assistance for the sector, helping to support overall market sentiment. Now, the question arises what will the impact of Budget 2024 be on the stock market, and which are the companies' stocks that are expected to grow?
Technical analyst & founder of Elite Trading System, Deepak Dhawan, talking to True Scoop News gave his insight into Budget 2024 impact on the stock market.
Deepak Dhawan said, "This budget is clearly focused on 3 major sectors- to boost the economy which are Agriculture sector, Manufacturing sector & Infrastructure sector. The main highlight is on the infrastructure sector to boost the economy as the government is spending 3.4% of its total GDP value on the infrastructure sector. Therefore, this budget will outshine the infrastructure stocks."
Mr. Dhawan also gave a few example of the stocks that may witness increase in its price. Dhawan said, "The main leaders in the market from infrastructure sectors are IRB LTD, GMR LTD, and CONCOR. Any person who doesn't have much knowledge about the stock market can simply buy the infrabees of nippon India (INDEX) to gain the benefits of government's budget on this infrastructure sector."
However, Deepak Dhawan pointed out, "This budget also increases the burden of taxes on Traders/investors. Taxes are as follows- Short term capital gains(STCG): 20%, previous it was 15%, so 5% more tax burden on market participants.
Long-term capital tax increased by 2.5% from 10%, which is now 12.5%. As a result, new traders will stay away from F&O. Finance Minister tightened the grip on F&O by increasing the Security Transaction Tax from 0.02% to 0.1% Which is 5 times."
Ultimately, Deepak Dhawan said, "As every budget focuses on the growth story of a country despite all the taxes & policies, India is a growing & developing country. The budget is for the huge growth of our economy in the long term and therefore the stock market will also grow."
Agri stocks surge up to 11% after Budget 2024
Following the announcement of the Union Budget 2024, which included important measures to improve agricultural productivity and support the production of oilseeds and pulses, agricultural stocks experienced a noteworthy increase of up to 11 percent. A rise in the shares of agri-related companies, including Kaveri Seeds and Jain Irrigation Systems Mangalam Seeds JK Agri Genetics, Nath Bio-Genes, Dhanuka Agritech, and ShreeOswal Seeds observed gains ranging from 2 to 11 percent following the announcement by Finance Minister Nirmala Sitharaman of ₹1. 52 lakh crore for agriculture and allied sectors.
In addition to declaring that this year's budget would prioritize the introduction of 109 new crop varieties that are both climate-resistant and high-yielding, Sitharaman underlined the significance of increasing productivity and resilience in agriculture.
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