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Unlocking investment opportunities Interim budget 2024 stock watchlist

08 Feb 2024


As India braces itself for the Interim Budget 2024, to be tabled by the Finance Minister on 1 February 2024, stock market investors eagerly anticipate potential opportunities. The budget, often seen as a crucial indicator of the government's economic policies and priorities, can significantly impact various sectors and, subsequently, the stock prices.

In this blog post, you will explore the sectors and stocks that could potentially surge after the interim budget based on anticipated policy changes and economic trends. Keep reading.

1. Stocks belonging to the infrastructure sector

The Indian government has been focusing on enhancing the country's infrastructure, and this trend is expected to continue. Stocks of infrastructure companies, especially those involved in highways, railways, and urban development projects, could experience a surge. You can look to invest in the stocks of companies that are likely to benefit from increased government spending on infrastructure.

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The top Indian stocks in the infrastructure and development sectors include Larsen and Toubro (L&T) India, GMR Airports Infrastructure, G R Infraprojects, HFCL, Reliance Infrastructure, and Engineers India, among others.

2. Stocks belonging to the travel and tourism industry

The travel and tourism industry has been the focus of the Indian Government ever since the COVID-19 pandemic. The government has made several announcements to boost this sector in previous budgets, and the trend is likely to continue this time as well. Some flagship schemes include Ude Desh ka Aam Nagrim (UDAN), Dekho Apna Desh (DAD), Swadesh Darshan, etc.

The top companies that can benefit from the government’s push to boost the travel and tourism industry include IRCTC, The Indian Hotels Company, Thomas Cook, Easy Trip Planners, Interglobe Aviation, and BLS International Services, among others.

3. Stocks belonging to the renewable energy sector

Global economies have been actively discussing climate change, and India's commitment to achieving net zero emissions by 2070 suggests potential significant developments in the renewable energy sector during the interim budget of 2024. In the 2023 Union Budget, the government increased funding for the sector by 48%, surpassing the allocation in the 2022 Union Budget.

If the government decides to increase fund allocation for the renewable energy sector in the interim budget, the top stocks that could surge include IREDA, Adani Green Energy, NTPC, JSW Energy, and Borosil Renewables, among others.

4. Stocks belonging to the healthcare and pharmaceutical industry

The Covid-19 pandemic has underscored the importance of a robust healthcare system. Investments in healthcare infrastructure, pharmaceutical research, and vaccine production may feature prominently in the interim budget 2024. Pharmaceutical companies involved in the research and development of critical drugs and vaccines could see a surge in demand, and subsequently, their stock prices might rise.

The top healthcare and pharma companies you can invest in before the interim budget include Cipla, Sun Pharma, Apollo Hospitals, Lupin, Abbott India, Alkem Laboratories, and Biocon, among others.

5. Stocks belonging to the technology and digital services sector

The government's push towards a digital economy will likely continue with investments in technology infrastructure and digital initiatives. Companies operating in the technology and IT sectors, especially those involved in areas like artificial intelligence, cybersecurity, and e-governance, could witness a surge in stock prices as a result of increased government spending.

Some top companies in these sectors include Wipro, HCL, TCS, Happiest Minds Technologies, Cyient, Tech Mahindra, Tata Elxsi, and L&T Technology Services.

6. Stocks belonging to the banking and finance industry

The growth of India's economy is significantly influenced by its banking and finance industry. Despite prevailing economic uncertainties, Indian banks and financial institutions have demonstrated remarkable resilience in promoting credit growth. The non-performing assets ratio of banks has declined, and in favourable economic conditions, the FM may suggest a new injection of capital in the interim budget of 2024.

You can monitor stocks in the banking and financial services sector for potential opportunities. Some top stocks in this sector include HDFC Bank, SBI, ICICI Bank, Aditya Birla Capital, and Bajaj Finserv, among others.

To conclude

While markets are inherently uncertain, understanding the government's economic priorities and policies can provide valuable insights for formulating investment strategies. As the Interim Budget 2024 unfolds, you must stay vigilant and consider investing in sectors that align with government initiatives.

With Motilal Oswal, you can open a free Demat account and navigate the world of stock investments seamlessly.



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