Top stocks to watch in defense, rail and more ahead of 2024 budget

Budget 2024 (Image source: iStockphoto)

Finance Minister Nirmala Sitharaman will present the Union Budget on Tuesday, with several shares expected to be in the limelight. According to The Economic Times report, Fisdom Research has identified 31 stocks across nine themes, including capex, railways, defence and renewables, that could gain popularity in the run-up to and after the budget announcement.

Capex: stimulating long-term economic growth

The budget is expected to continue the trend of high capital expenditure in sectors such as roads, power, urban development and railways. These investments are likely to act as long-term economic multipliers. Key stocks to watch include Larsen & Toubro (L&T), KNR Constructions and PNC Infratech.

Railways: Expansion and modernization of infrastructure

Indian Railways is expected to make significant investments to expand and modernize its rail infrastructure. This includes new lines, redevelopment of stations and introduction of modern trains. Stocks to watch in this sector include IRCTC, Container Corporation of India and Titagarh Wagons.

Affordable housing and urban development

The report added that the government is expected to fund affordable housing and develop new satellite townships near metro cities. Stocks likely to benefit from these initiatives include DLF, Godrej Properties and Oberoi Realty.

Defense: modernization and indigenization

A higher defense budget is expected to focus on modernizing the armed forces, acquiring advanced technology and boosting indigenization efforts. Stocks to watch include Bharat Electronics (CALL), Hindustan Aeronautics (HAL) and Bharat Dynamics.

Agriculture: strengthening infrastructure and support

Expectations for the agriculture sector include higher Minimum Support Prices (MSP) for major crops, improved PM Kisan Samman Nidhi and development of agro-infrastructure such as storage, irrigation and processing facilities. Key stocks in this sector include Mahindra & Mahindra (M&M), Escorts and UPL.

Health care: expansion of health services

The continued expansion of the Ayushman Bharat programme and the focus on healthcare services for women and senior citizens are likely to draw attention to Apollo Hospitals Enterprise, Fortis Healthcare, Sun Pharmaceutical and Cipla.

SME: stimulating small businesses

Micro, small and medium enterprises (MSMEs) stand to benefit from the government’s expansion of credit schemes such as Mudra loans and support for startups through initiatives such as the Startup India Seed Fund Scheme. Stocks to watch include HDFC Bank, Kotak Mahindra Bank, Tata Consultancy Services (TCS) and Infosys.

Job Creation: Emphasis on Employment Opportunities

Infrastructure projects and public welfare programs are expected to create employment opportunities, especially in rural areas. Stocks to watch include L&T, TCS and Infosys.

Renewable energy: promoting clean technologies

The government’s focus on promoting clean energy technologies through green hydrogen, solar and wind energy projects is likely to benefit Tata Power, Adani Green Energy, NTPC, Inox Wind and Suzlon Energy.

(Disclaimer: The above article is for information purposes only and should not be construed as investment advice. Times Now Digital advises its readers/audience to consult their financial advisors before taking any financial decisions.)