Budget 2024: Finance Minister Nirmala Sitharaman is set to present the budget on February 1st (Thursday). There are high expectations from both the general public and investors regarding the budget.
Axis Securities has released an outlook for investors regarding the upcoming budget. The brokerage firm suggests that this year's budget will focus on capital expenditure. There is a possibility of increased spending in the rural economy.
Furthermore, the government may increase additional spending on power, utilities, and renewable energy. This could have an impact on the railway, infrastructure, and capital goods sectors.
Additionally, companies associated with FMCG (Fast Moving Consumer Goods) and the automotive sector may benefit from increased spending in the rural economy.
Cement: According to Axis Securities, the government is expected to continue spending on infrastructure projects, benefiting the cement sector. Annual capital expenditure on infrastructure could increase by 15 per cent.
Infrastructure: The government's consistent focus on infrastructure is likely to benefit the sector. The budget may also see additional announcements related to infrastructure spending.
Power: Brokerage firm suggests that companies involved in manufacturing solar panels, solar glass, and solar batteries will directly benefit from the government's solar power initiatives, such as the 'Suryodaya Yojana.'
Pharma: The pharmaceutical sector is hopeful for increased allocation of funds in the Promotion of Research and Innovation Program (PRIP). This could directly benefit the pharma sector, following the government's allocation of a 5000 crore INR PRIP fund in the previous budget.
Capital Goods: Industries anticipate that the government will continue capital expenditure on railways and other sectors. There might also be schemes introduced to boost electric production, benefiting the capital goods sector.