Budget 2024: From BEL To Tata Steel - 3 Stocks Benefiting The Most From The Upcoming Budget

Market players anticipate the budget for further guidance following the Lok Sabha Elections of 2024, with a number of sectors expected to gain from a Modi 3.0 leadership. Nirmala Sitharaman, who was re-elected to a second term as Finance Minister, is expected to focus her efforts on the defence and railway sectors, which benefit from government funding and strategic initiatives. The upcoming budget will revolutionise multiple sectors and might serve as the impetus for a stock market boom. Following extensive discussions with market professionals, the following three stocks are most likely to profit the most from the upcoming budget 2024.

Top Sectors To Watch Out On Budget Day

Suman Bannerjee, CIO, Hedonova said, "Post the Lok Sabha Elections 2024, market participants are looking forward to the budget for further direction, with several sectors poised to benefit. The banking sector is expected to continue performing well, driven by positive sentiment and potential policy support. The railways and defence sectors are also likely to remain in focus, benefiting from government spending and strategic initiatives. Interest rate cuts, anticipated following US Federal Reserve actions, could further bolster banking stocks and improve market liquidity. Additionally, the automobile sector, with stocks like Eicher Motors, Tata Motors, M&M, and Ashok Leyland, is seen as a strong performer due to expected policy incentives and robust demand. Overall, corporate earnings will be crucial in sustaining market valuations and driving sector-specific gains."

Edul Patel, CEO of Mudrex said, "With the newly formed government expected to increase capital expenditure and maintain policy continuity, sectors such as sustainable development, renewable energy, defense, infrastructure development, and public sector undertakings (PSUs) are likely to benefit. Investors should assess their risk tolerance before committing to these funds. Diversification remains crucial to balancing risk and optimizing returns, ensuring a well-rounded investment strategy across various sectors for optimal results."

Stocks To Buy Before Upcoming Budget 2024

Vishnu Kant Upadhyay, Assistant Vice President - Research and Advisory at Master Capital Services Ltd has recommended 3 stocks which are benefiting the most from the upcoming budget.

PRAJ INDUSTRIES

Praj Industries' buy range is 680-685, stop loss is 645 and target is 760. Praj Industries shares are forming a bullish pennant formation on the daily chart, indicating a continuation of the upward trend. The shares are also trading above their key moving averages, specifically the 21-day and 55-day EMAs. This bullish setup suggests a potential for further price appreciation, with a target of 760 in the coming days.

BEL

Bel buy range is 295, the stop loss is 283 and the target is 340. This defense sector stock has witnessed a healthy correction of nearly 7% from its all-time high. Despite this pullback, the stock is maintaining its higher highs pattern and is trading above the 21-day EMA. The recent decline in prices has not been accompanied by a significant increase in trading volumes, indicating limited investor participation in the downturn. We anticipate the stock to resume its bullish momentum, with a potential uptrend towards 340 and beyond.

Tata Steel

Tata Steel's buy range is 169-168, stop loss 158 and the target is 185-190. Despite a decline of around 7% from its 52-week high, Tata Steel's share price remains above the crucial 21-week EMA, which has historically acted as a key support level. The price has completed a 50% Fibonacci retracement of the previous uptrend and is currently trading near a significant horizontal support area. We anticipate limited downside from the current levels. A drop towards the 169-168 range may offer an opportunity to initiate fresh long positions, with potential targets of 185-190.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.