As India approaches the announcement of the 2024 Union Budget, investors are keenly observing potential opportunities for stock market gains. Historically, Budget announcements have had a significant impact on various sectors, and this year is expected to be no different. With anticipated increases in government spending on infrastructure, a boost to domestic manufacturing, and policy continuity favoring public sector undertakings (PSUs), several stocks are poised for substantial rallies.
India’s stock market is poised for significant growth, with projections of up to a 20% increase this year, driven by government spending and strong corporate earnings. The budget, expected later this month, is likely to enhance consumer spending and infrastructure development. According to a Bloomberg survey, over half of the 24 strategists and investors see the NSE Nifty 50 Index reaching 26,000 points by year-end, with some foreseeing even higher gains. The benchmark index has already surged 12% to a record high.
NHPC Limited
NHPC Limited, an Indian public sector hydropower company, is currently trading 0.09% higher at Rs 115.90 compared to its last closing price. The stock has been fluctuating within the range of Rs 117.30 and Rs 115.20. The company posted a net profit of Rs 363.40 crore in its last quarter. Today, it opened at Rs 115.70. If NHPC crosses the Rs 117 mark in coming days, it could reach an all-time high.
Suzlon Energy
Suzlon Energy, an Indian multinational wind turbine manufacturer headquartered in Pune, has seen a 36% year-on-year increase in net revenue due to higher dispatches despite lower commissioning of wind turbine generators. The company posted a net profit of Rs 254.12 crore in its last quarter, and analysts suggest holding this stock. Suzlon Energy is trading 0.18% higher at Rs 54.73 compared to its last closing price.
BHEL Limited
BHEL Limited, the largest government-owned power generation equipment manufacturer in India, reported a 27% year-on-year increase in net revenue, driven by a robust order book in the power segment. Despite expecting a marginal negative profit after tax, the stock is in a strong bullish trend, and investors are advised to continue holding it. The company posted a net profit of Rs 489.62 crore in its last quarter, opening today at Rs 324.65.
CESC
The Calcutta Electric Supply Corporation (CESC), a Kolkata-based flagship company, is expected to report a 3% year-on-year revenue growth, led by higher generation and lower AT&C losses. CESC is trading 0.11% higher at Rs 183.65 compared to its last closing price. The company posted a net profit of Rs 400 crore in its last quarter, opening today at Rs 183.
Torrent Power
Torrent Power, an Indian energy and power company, is trading 0.74% higher at Rs 1,530.75 compared to its last closing price. The company posted a net profit of Rs 430.24 crore in its last quarter and is expected to report a revenue of Rs 8,000 crore, up 10% year-on-year due to higher generation in their gas-based plants.
As the budget announcement draws near, these stocks, among others, are being closely watched by investors for potential growth opportunities. The expected government spending on infrastructure and other key areas is likely to drive further gains in the stock market, making it an exciting time for investors in India.
