Union Budget 2024: The Indian market is experiencing relentless bullish momentum characterized by a series of record highs, frequent milestone achievements, and the establishment of new benchmarks. On Thursday, June 27, the benchmark Nifty breached the 24,000 mark for the first time. Continuing the rally, the Nifty reached 24,100 points, hitting a new record high of 24,174 points on Friday, June 28. This impressive rise reflects strong investor confidence and optimism, driven by positive economic indicators, anticipated policy stability, and increased foreign investment inflows.
As the Union Budget 2024-2025 approaches, investors are keen to capitalise on sector-specific opportunities. Leading financial analysts and advisors have shared their recommendations for stocks to consider:
Jeni Rita – Equity research analyst at Inventure Growth & Securities
Rita highlights the importance of infrastructure, defence, and railways as key sectors that are likely to benefit from the upcoming budget:
Larsen & Toubro Ltd (L&T)
Current Market Price (CMP): Rs. 3,605.85
Rationale: With a record allocation of Rs. 11,11,111 crore for infrastructure, L&T stands to benefit significantly. The company aims to generate group revenue of Rs. 2.7 lakh crore by FY 2025-2026, expecting a 10% growth in order inflow and an EBITDA margin of around 8.25%.
Hindustan Aeronautics Ltd (HAL)
CMP: ₹5,283
Rationale: As a major player in India’s defence sector, HAL is set to benefit from the Rs. 6.22 lakh crore defence budget. The company has a robust order book of Rs. 94,000 crore, providing strong order visibility.
Titagarh Rail Systems Ltd
CMP: ₹1,767
Rationale: Leading in manufacturing freight and passenger rolling stock, Titagarh will gain from the government’s Rs. 2.55 lakh crore allocation for railway infrastructure and initiatives like the PM Gati Shakti.
Jyoti Bhandari, Founder and CEO, Lovak Capital
Bhandari focuses on housing finance and renewable energy sectors with a technical analysis approach:
Potential Upside: 30% in 3 months
Rationale: HUDCO’s stock shows strong technical momentum, trading above major moving averages with excellent net margins and consistent profit growth. The upcoming budget is expected to provide cheaper funds for housing finance.
Rationale: IREDA is positioned for a breakout above Rs. 200, supported by strong fundamentals and growth in renewable energy, which is likely to receive favourable allocations in the budget.
Laxmikant Shukla, Technical Research Analyst, YES Securities India Limited
Shukla provides technical insights on key stocks:
BHEL
Buy Range: ₹295-297
Rationale: BHEL shows a strong support zone with a consolidation breakout backed by increased trading volumes, indicating the start of an uptrend.
WIPRO
Buy Range: ₹501-506
Rationale: The stock has broken out from a consolidation phase with higher trading volumes during uptrends, signalling a bullish outlook.
Vishnu Kant Upadhyay, Assistant Vice President – Research and Advisory at Master Capital Services Ltd.
Upadhyay recommends stocks showing bullish technical formations:
Praj Industries
Buy Range: ₹680-685
Rationale: Praj Industries is forming a bullish pennant pattern on the daily chart, suggesting a continuation of the upward trend.
Rationale: BEL is maintaining its higher highs pattern and trading above key moving averages, indicating a potential uptrend.
Tata Steel
Buy Range: ₹169-168
Rationale: Tata Steel remains above the crucial 21-week EMA, with limited downside and significant support levels suggesting an opportunity for fresh long positions.
Fundamental Picks by Devang Shah, Head – Retail Research, Asit C. Mehta Investment Intermediates Ltd.
Shah focuses on companies with strong growth prospects and attractive valuations:
APL Apollo Tubes
CMP: ₹1595
Rationale: As the largest producer of structural steel tubes in India, APL Apollo is set to benefit from the government’s focus on infrastructure, construction, and real estate sectors.
Triveni Engineering
CMP: ₹395
Rationale: With diverse businesses in sugar and allied products and engineering, Triveni is well-positioned to benefit from the rising demand for ethanol and the government’s push for ethanol blending targets.
Rationale: Ador Welding is thriving with strong demand in infrastructure, railways, and shipbuilding sectors. The company is investing in automation and expanding its market presence.
Transport Corporation of India (TCI)
CMP: ₹923
Rationale: TCI, as India’s largest integrated logistics service provider, is expected to benefit from the shift towards organized logistics players and continued support for infrastructure development.
Technical picks by other analysts
Shrikant Chouhan, Head Equity Research, Kotak Securities
Godrej Agrovet
Target: Rs. 740
Rationale: Godrej Agrovet shows impressive growth potential with smart cost-cutting and new leadership driving improvements across all segments. The stock is undervalued, making it an attractive investment opportunity.
Rationale: After a short-term correction, SBI shows a positive medium-term texture, with a higher bottom formation on weekly charts supporting a further uptrend.
Shah of Head – Retail Research, Asit C. Mehta Investment Intermediates Ltd.
Reliance Industries Limited
CMP: ₹3027
Rationale: The stock has broken out of a consolidation pattern with a surge in volume, indicating strong buying interest and a resumption of an uptrend.
Praj Industries
CMP: ₹690
Rationale: On a weekly scale, Praj Industries has broken out of a rounding bottom pattern, sustaining above it with increased volume, signaling strong buying interest.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.