Stock market specialists placed significant bets on four major industries ahead of the Center’s July 23 presentation of the Union Budget 2024–2025: capital goods, defense, electronics system design and manufacture (ESDM), and tourism.
The market expects the same incentives from the previous year, so things will remain as they are. It is essential to keep concentrating on infrastructure, which includes ports, highways, railroads, airport expansions, defense, and tourism.
Nifty has increased by 0.3% over the last week thanks to impressive results and optimistic growth projections from IT giants TCS, Infosys, and HCL Tech.
The government intends to invest Rs 4.75 lakh crore to modernize India’s power transmission, with a goal capacity of 618 GW by 2028, coupled with Rs 1.5 lakh crore for oil and gas and metro extensions in over 40 cities, according to Krishna Appala of Capitalmind Research.
He stated, “The defense budget has increased to Rs 6.2 lakh crore, with the goal of achieving 70% self-sufficiency and a turnover of Rs 1.75 lakh crore by 2025.”
The government is investing Rs 76,000 crore to encourage domestic electronics manufacturing, with the goal of growing the ESDM sector from $25 billion to $100 billion over the next five to seven years.
Market observers predict that the tourism industry will grow from $24.6 billion in 2024 to $31 billion in 2029, with demand exceeding supply.
Larger production-linked incentives (PLI) in the toy, high-end machinery, and battery manufacturing industries are anticipated in the budget, along with more support for industries including semiconductors, nuclear power, renewable energy, and affordable housing.
The market isn’t expecting any unpleasant shocks in the areas of income tax, LTCG, STCG, or STT at this time. Any modifications, though, might have unfavorable effects in the near run, according to Appala.
