Budget 2024: These stocks and sectors may gain from Nirmala Sitharaman's announcements

As key themes of the Budget are awaited, investors are watching different sectors which can benefit from Nirmala Sitharaman's announcements.

Finance minister Nirmala Sitharaman is all set to present the Union Budget 2024 on July 2023. As per brokerage firm JM Financial, the government is expected to balance fiscal deficit management, capital expenditure for growth, and social spending. As key themes of the Budget are awaited, investors are watching different sectors which can benefit from Nirmala Sitharaman's announcements.

The Union budget 2024 is scheduled to be presented on July 23 by finance minister Nirmala Sitharaman, who will become the first finance minister to present seven consecutive Union budgets in a row, surpassing Morarji Desai, who presented six consecutive budgets.

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Which stocks may benefit from the Union Budget?

JM Financial highlighted several stocks that are expected to be in focus ahead of the Budget which include Mahindra & Mahindra Ltd, Hero MotoCorp Ltd, ITC Ltd, Sumitomo Chemical India Ltd, Reliance Industries Ltd, Power Grid, and NTPC Ltd. Other stocks in the list include Sanghvi Movers Ltd, Bharat Electronics Ltd, Bharat Forge, VA Tech Wabag Ltd, Larsen & Toubro Ltd, DLF Ltd, Ambuja Cements Ltd, APL Apollo, PFC, and IRCON International Ltd.

Which sectors are likely to benefit from the Union Budget?

FMCG sector: FMCG firms such as Dabur India, Hindustan Unilever (HUL), Godrej Consumer, and Nestle India may benefit from potential tax cuts, expansion in tax slabs, or increase in the limit for tax-saving investments under Section 80C. Increase in excise duty on cigarettes and tobacco products would negatively impact cigarette manufacturers like ITC and Godfrey Phillips.

Defence, railways, and infrastructure: Increased allocation for defence capital expenditure would be positive for stocks like Bharat Electronics (BEL) and Hindustan Aeronautics (HAL) whereas higher capital spending on railway infrastructure would benefit stocks like RVNL, Titagarh Rail Systems, IRCON, and BEML.