Stocks to Watch on Budget 2024 day, July 23: Defence, Railways, Banks, Agri

Stocks to Watch today, July 23, 2024: The Narendra Modi-led Bharatiya Janata Party (BJP) is all set to present the Union Budget 2024-25

Stocks to Watch on 2024-25 Budget Day, July 23: The Indian stock markets will remain volatile today as investors eye key proposals by Finance Minister Nirmala Sitharaman for Union Budget 2024-25. The Narendra Modi-led Bharatiya Janata Party (BJP) is all set to present its first Budget under its third term with analysts expecting a mix of populist and reform-oriented announcements.

At 7:45 AM, GIFT Nifty was trading 34 points higher at 24,553 ahead of the Budget 2024 presentation. TRACK LIVE UPDATES

Here is a list of stocks to watch today, Tuesday, July 23, 2024:

Shipping Corporation, Garden Reach Shipbuilders, Adani Ports: Shares of shipping, ship building, and port-related companies could see action today. According to reports, the government may increase funding for port modernisation, provide incentives for green shipping practices, and may launch a maritime development fund with a corpus of Rs 15,000 to 20,000 crore to support shipbuilding at low-interest rates.

 

HAL, Astra Micro, Bharat Dynamics: Shares of defence related companies will be in focus on Budget day amid the government's push towards Aatmanirbhar Bharat and indigenous production of defence-related equipment.

DLF, Oberoi Realty, Sobha, LIC Housing Finance, Aadhar Housing, Home First Finance: Shares of real estate companies, along with home loans providers, may eye the Modi government's proposals for the real estate sector in Budget 2024-25.

The industry expects a push towards affordable housing via a revamped Pradhan Mantri Awas Yojana-Grameen, more credit-linked incentive schemes for economically weak/lower income group category, and tax benefits for affordable houses.

Fertiliser, agro-chemicals, FMCG: Shares of rural economy/agriculture-related companies may see considerable action on Budget day. Shares of Madras Fertilizers, GNFC, Mangalore Chemicals and Fertilizers, NFL, RCF, and Rallis India would be on investors' radar as they expect the government to dole out incentives to boost rural incomes.

According to reports, industry bodies have asked the government to rationalise fertiliser subsidies and hike investment for agricultural research.

The experts from the agriculture sector, suggested that all agriculture-related subsidies could be consolidated for transfer through Direct Benefit Transfer (DBT). They also recommended increasing the retail price of urea, which has remained unchanged since 2018.

A boost to the rural economy may give a fillip to consumption stocks like HUL, Britannia Industries, ITC, Marico, Dabur among others.

Titagarh Wagons, IRCTC, Ircon International, Texmaco Rail: Shares of railway-related companies would react to any announcement made by the Finance Minister Nirmala Sitharaman with regards to the Indian Railways. The industry expects a substantial allocation to bolster infrastructure, enhance connectivity, and modernise services across the railway network.

IDBI Bank, Bank of Maharashtra, IOB: Shares of public sector banks are expected to trade volatile today as financial market participants would watch out for announcements related to further equity dilution in PSBs to meet the 25 per cent public shareholding norms prescribed by equity market regulator Securities and Exchange Board of India.

That apart, as per a Business Standard report, the banking sector is hopeful that Finance Minister Nirmala Sitharaman may make an announcement on the long-pending five-day banking rule in the Budget. Bankers have also made several proposals for the Budget, including tax relief on deposits and home loans, as well as the establishment of a dedicated refinancing entity for non-banking financial companies (NBFCs). 

Other stocks in focus today:

Q1FY25 results on Tuesday, July 23, 2024: Bajaj Finance, DCM Shriram, Heritage Foods, Hindustan Unilever, ICICI Prudential, ICRA, Indoco Remedies, ICICI Securities, Kajaria Ceramics, Mahindra and Mahindra Financial Services, Schaeffler India, Sharda Cropchem, SRF, Steel Strips Wheels, Thyrocare Technologies, Torrent Pharmaceuticals, and United Spirits will announce their June quarter results today.

Q1 result reactions: Suzlon Energy, Zensar Technologies, Spencers Retail, Allied Blenders, Mangalore Refinery and Petchem, Greenlam Ind, and Cyient DLM.

Reliance Industries: RIL-arm, Reliance New Energy, has acquired the remaining 12.7-per cent stake in Reliance Lithium for 3.7 million euros.

Federal Bank: The Reserve Bank of India has approved the appointment of Krishnan Venkat Subramanian as MD and CEO for three years, effective September 23.

Lemon Tree Hotels: The company has signed two License Agreements viz. Lemon Tree Hotel, Arpora, Goa, and Keys Lite by Lemon Tree Hotels, Pathankot, Punjab. The two new properties are expected to open in FY2026.

Punjab and Sind Bank: The Board of Directors of the bank is scheduled to be held on July 26, 2024, to consider and approve the Unaudited Reviewed Financial Results of the Bank for the quarter ended June 30, 2024. The Board will also consider to raise funds up to Rs 3,000 crore in one or more tranches, by way of issue of Basel III compliant Additional Tier I Bonds, Tier II Bonds or combination thereof.

Power Mech Projects: The Government of Uttarakhand has revised the tender awarded to the company for the construction of the Government Medical College & Hospital for Uttarakhand Pey Jal Nigam Limited (UKPJNL). The project cost has been revised upwards to Rs 593.99 crore.

Gensol Engineering: The company has become the preferred bidder for 116 MW solar projects, with an EPC revenue of Rs 600 crore in Gujarat.