Budget 2024: Boosting Consumption and Growth in Key Sectors
The upcoming Union Budget 2024 is expected to benefit consumer goods, real estate, infrastructure, and automobiles, among other sectors, with increased spending and incentives.
Union Budget 2024Real EstateInfrastructureConsumer GoodsAutomobilesNirmala SitharamanReal Estate MumbaiJul 20, 2024
Finance Minister Nirmala Sitharaman is set to present India's budget for FY25 on July 23, marking Modi 3.0's first one. The government is likely to allocate more funds to rural schemes to boost consumption, benefiting companies such as Hindustan Unilever, TVS Motor, and Hero MotoCorp.
Industries like consumer goods, real estate, housing finance, infrastructure, and automobiles are anticipated to benefit from a boost in consumption, according to brokerage firms. The continuation of production-linked incentive schemes designed to stimulate local manufacturing and job creation could also benefit companies such as Dixon Technologies, Ideaforge Technology, and Biocon.
Additionally, capital goods firms like Larsen & Toubro could profit from increased capital expenditure. An increase in allocations for affordable housing could favour developers like Macrotech Developers and Sunteck Realty. The government has allocated subsidies totaling Rs 11,500 crore over five years to encourage the adoption of electric vehicles (EVs), which is expected to benefit key players in the EV sector, including Tata Motors, Ola Electric, Olectra Greentech, and JBM Auto.
On the other hand, some sectors may face challenges. Any adjustment to capital gains tax, such as extending the holding period or increasing the tax rate, could dampen equity markets. The country's mutual fund association has advocated exempting mutual fund units from long-term capital gains tax. Regulators and the government also aim to curb derivatives trading, citing its speculative nature, which has significantly influenced stock market growth since the Covid-19 pandemic.
Citi, Jefferies, HSBC, Macquarie, Morgan Stanley, Motilal Oswal, ICICI Securities, Angel One, and 5 Paisa are leading financial institutions and brokerage firms that provide insights and analysis on the Indian economy and market trends.
Frequently Asked Questions
When is the Union Budget 2024 expected to be presented?
The Union Budget 2024 is expected to be presented on July 23, 2024.
Which sectors are likely to benefit from the Budget 2024?
Consumer goods, real estate, housing finance, infrastructure, and automobiles are likely to benefit from the Budget 2024.
What is the expected impact of the Budget 2024 on the stock market?
Any adjustment to capital gains tax could dampen equity markets, while the continuation of production-linked incentive schemes could benefit certain companies.
What is the government's stance on electric vehicles?
The government has allocated subsidies totaling Rs 11,500 crore over five years to encourage the adoption of electric vehicles.
Which companies are likely to benefit from the government's affordable housing initiatives?
Developers like Macrotech Developers and Sunteck Realty are likely to benefit from the government's affordable housing initiatives.
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