Budget 2024 priority for experts are the defense, railroads, infrastructure, and renewable energy sectors

Religare Broking Ltd.'s SVP of Retail Research, Ravi Singh, states that infrastructure investment would prioritize sustainability with the goal of updating transportation networks and enhancing environmental results.

Investors in the market are now anxiously awaiting the entire FY25 budget to be presented by Finance Minister Nirmala Sitharaman. The administration is reportedly going to unveil the budget around the third week of July, although no formal announcement has been made as of yet.

According to experts, the Indian stock market has been steadily rising each week since the elections, maintaining an optimistic tone. The Indian stock market was once again affected by profit booking at higher levels on Friday, June 28, which resulted in losses for the benchmarks, the Sensex and Nifty 50, ending their four-day winning run.

Indian benchmark indexes saw increases this week in spite of conflicting signals from the international market, especially with reference to inflation worries. The underperformance of the mid- and small-cap divisions was caused by investors' focus being primarily on large-cap firms. According to Vinod Nair, Head of Research at Geojit Financial Services, "the IT sector in particular demonstrated notable recovery along with private banks which outperformed public sector banks in the banking segment."

Which areas should continue to get attention before the 2024 budget?

Religare Broking Ltd.'s SVP of Retail Research, Ravi Singh, states that infrastructure investment would prioritize sustainability with the goal of updating transportation networks and enhancing environmental results.

It is projected that energy policy will place a strong emphasis on renewable energy sources in order to reduce carbon emissions and support global environmental objectives. Not to mention the areas of railways and defense, where more capital expenditure is prioritized. Stakeholders will be keenly monitoring the performance of these industries as they anticipate how the budget would affect recovery and economic growth plans, Singh told Livemint.

The budget, according to brokerage company Jefferies India Pvt Ltd, would have a beneficial effect on a number of domestic industries, including consumer products, capital expenditure plays, affordable housing, and rate-sensitive industries. It does not anticipate any major catalysts in the fields of pharma and information technology, nevertheless.