Budgeting plays a pivotal role in the management of a nation's economy. It essentially serves as a blueprint detailing how the government intends to use the income it derives from the economy. A budget also provides an overview of the government's fiscal policies.
It allows the public to assess the government's expenditures in the preceding fiscal year, revealing not only the total expenditure but also details of how and where these funds were allocated.
Every country's objective is to enhance its citizens' living standards and tackle various economic and social issues. Budgetary measures are instrumental in aiding the government in pursuing these objectives.
The 2024 budget was an interim one announced by the honourable Finance Minister, Smt. Nirmala Sitharaman, who outlined the achievements of the current government since 2014. She emphasised that the current government will work towards the progress of women, youth, the poor, and farmers.
The FM also stressed the importance of enforcing the mantra of "Sabka Saath, Sabka Vikas," as she talked about becoming a developed nation by 2047.
Sitharaman also announced many attractive schemes, and here are a few stocks that are likely to benefit from the schemes announced in Budget 2024:
Indian Railway Finance Corporation Ltd
The IRFC serves as a financing entity for the Indian Railways, facilitating the mobilisation of funds from both domestic and international capital markets.
In the 2024 budget, it was announced that 40,000 bogies would be converted into the Vande Bharat category. Additionally, three new railway corridors have been introduced to enhance port connectivity and alleviate road traffic.
The government's focus on improving and standardising the railway system has been evident since it came to power in 2014, which is why IRFC is expected to perform well in the upcoming days.
BCPL Railway Infrastructure can also benefit from the announced schemes.
Tata Power Company Ltd
Tata Power Company Ltd specialises in generating, transmitting, and distributing electricity, with a primary focus on producing electricity from renewable sources.
The company is also engaged in producing solar roofing systems and has ambitious plans to establish 100,000 electric vehicle (EV) charging stations by 2025.
The budget 2024 has announced that they aim to install rooftop solar systems to help households obtain 300 units of free electricity per month. This is a good announcement for Tata Power as it operates in the renewable energy segment.
Other stocks that will benefit from this announcement are Adani Green Ltd and Suzlon Energy.
Housing & Urban Development Corporation Ltd
HUDCO is a publicly-owned financial institution primarily focusing on funding social housing and urban infrastructure projects. It offers consultancy services for significant projects and government initiatives.
This share also saw an increase of 7% during the budget session as the FM targeted constructing 20 million houses in the next five years under PM Awas Yojana.
Tourism Finance Corporation of India Ltd
The Tourism Finance Corporation of India Ltd extends financial assistance to different facets of the tourism industry, encompassing areas such as hotels, resorts, restaurants, food courts, amusement parks, ropeways, and multiplexes.
Today, during the budget session, the share of this company witnessed an 8% increase. This surge came in response to the Finance Minister's announcement regarding the government's commitment to promoting tourism across India.
Developments like Ayodhya have contributed to the growth of spiritual tourism. Additionally, the government has its sights set on the development of Lakshadweep as part of its tourism initiatives.
Apex Frozen Foods Ltd
Apex Frozen Foods Ltd is a fully integrated company specialising in the production and export of high-quality, shelf-stable aquaculture products.
Established in 1995, Apex Frozen Foods Ltd has emerged as a prominent player in the processed shrimp industry. The company's operations encompass hatchery management, farming, pre-processing, processing, and the export of top-notch shelf-stable aquaculture products, with a primary focus on shrimp.
To bolster India's fisheries sector, FM announced an increase in aquaculture productivity from the current three tonnes per hectare to five tonnes per hectare. The goal is to double exports, reaching one lakh crore, which is expected to generate approximately 5.5 million employment opportunities.
Conclusion
The budget of 2024 has impacted various industries like solar, railways, and fisheries, to name a few. Many stocks observed a jump of 5% to 8%, which is commendable. There is a general sense of optimism surrounding India as we aim to become a five trillion-dollar economy by 2027.
For retail investors, investing in stocks post-budget announcement can be a prudent choice for their portfolios. However, following news related to the sector is essential to stay updated about the industry and make informed decisions for your portfolio.
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