Interim Budget Impact: Tips for Stock Market Investors by Analysts Hitesh Somani and Nikhil Bhatt

Finance Minister Nirmala Sitharaman presented the Interim Budget, but there was no change in the tax slab or GST, leaving the market disappointed. However, the coming time will be a good time for stock market investors, and investing in the shares of the sectors discussed in the budget today can be very profitable in the near future. Hitesh Somani and Nikhil Bhatt, two research analysts who visited Divya Bhaskar’s newsroom, provided tips for investors.

Hitesh Somani has been involved in stock consultancy for 13 years and conducts stock market coaching classes in Ahmedabad. He serves as the Managing Director of Aapka Investment Company. Nikhil Bhatt is a SEBI Registered Research Analyst and Managing Director of Investment Point, a stock market trading consultancy company based in Jamnagar. Nikhil Bhatt has been working as a stock market consultant for years.

Regarding the impact of the budget on the stock market, research analyst Hitesh Somani, speaking from Divya Bhaskar’s newsroom, stated that since today’s budget is an interim budget, there is a high possibility that the market will remain stable. This budget being an interim one due to the Lok Sabha elections, it typically does not involve major announcements that significantly impact the stock market, following the trend of the last few years.

Investors should keep an eye on the tourism, green energy, and infrastructure sectors, advised research analyst Hitesh Somani. He highlighted the potential developments in Lakshadweep, where new hotels and infrastructure projects are expected to boost companies like ITC, IACL, and ITDC in the tourism sector. Additionally, the focus on green energy initiatives, particularly rooftop solar, may benefit companies like Boro Renew, Adani Green, Suzlon, and others. In the infrastructure sector, companies involved in real estate stand to gain from government initiatives, emphasizing its importance. Furthermore, the budget’s emphasis on fisheries could be advantageous for seafood-related companies such as Godrej Agro and Bearcorp. Additionally, pharmaceutical companies specializing in cancer drugs may see positive outcomes.

Hitesh Somani noted from Bhaskar’s newsroom that the lack of changes in tax slabs and GST has impacted market liquidity. He emphasized that the absence of alterations in these areas, typical for an interim budget, has led to a lack of excitement in the market. While the budget lacked significant changes, Somani highlighted the potential for more substantial alterations in the full-term budget scheduled for June. Comparatively, this budget has been perceived as the most disappointing due to the absence of significant revisions in tax policies or GST rates.

Agriculture stands to benefit significantly from rural development initiatives, according to expert Hitesh Somani. While he noted that the budget lacked significant highlights, it emphasized development across various sectors such as infrastructure and green energy. Somani highlighted the power sector, infrastructure, and banking sectors as the primary beneficiaries of the budget. Moreover, the fisheries sector received increased attention, while tourism, aviation, and the hotel industry are expected to see positive outcomes.

Nikhil Bhatt, a renowned trade analyst, shared insights on the budget and future stock market trends, highlighting it as the last budget of the Modi government’s second term. He described the budget as optimistic, focusing on agriculture, infrastructure, banking, and railways. Notably, significant announcements were made to boost the aviation sector, making it advisable to consider investing in aviation companies’ stocks. Bhatt emphasized the potential for excellent returns on investments made before July.

Nikhil Bhatt, emphasizing the investment potential, particularly highlighted the banking sector as the prime choice. He discussed forthcoming market trends, suggesting that a stable government post-July, coupled with a full budget, could pave the way for achieving the 5 trillion economy target. Bhatt noted significant growth in GST collections, indicating a positive economic trajectory. Investors are encouraged to consider the energy sector alongside banking for investment opportunities, anticipating substantial returns in the future.

Below are the sectors and companies worth considering for investment:

Infrastructure Sector: Larsen Limited, Godrej Property, IBR Infrastructure, HG Infrastructure

Aviation Sector: InterGlobe Aviation (Indigo), GVK Industries, GMR Airports Infra

Energy Sector: Tata Power, JSW Energy, Adani Green Energy, Adani Power, NTPC Limited, Boro Renew

Railway Sector: Titagarh Wagons, Rail Vikas Nigam Limited, BHEL, Indian Railway Finance Corporation, Texmaco Rail & Engineering, Ircon International, RailTel, and RITES Ltd

Hotel Industry Sector: ITC, IACL, ITDC