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How is the 2024 Union Budget likely to impact the stock market?

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After taking office last month, Modi Government 3.0 is all set to present the Union Budget 2024 on July 23. This will be Finance and Corporate Affairs Minister Nirmala Sitharaman’s sixth budget and early indications suggest that this is likely to be a populist one with updates on multiple policies, schemes, and income tax rate slabs expected.

News agencies have reported that Sitharaman has chaired meetings with leading economists, the finance secretary, the chief economic advisor, and others in New Delhi to discuss the budget 2024 key points.

Political conditions and government policies have the power to influence and sway the capital markets. Check out our Budget 2024 update and take stock of your portfolio ahead of the big day.

What can we expect to happen in the stock market on Budget Day?

The Union Budget 2024 is expected to boost consumer spending and infrastructure building. This of course bodes well for businesses and investors.

Some are predicting that the NSE Nifty 50 Index may advance up to 26,000 points by the end of 2024, while others forecast it could climb even higher.

A reduced majority for Prime Minister Narendra Modi's BJP in recent elections has led investors to focus more on the consumer sector, expecting the government to adopt more populist measures.

Additionally, an early monsoon has improved prospects for companies dealing with crops. 

As the government outlines its policy priorities under the new coalition government, experts believe that consumer discretionary stocks have the brightest prospects, with financial and commodities shares also preferred.

#BudgetSimpleHai

According to reports, Finance Minister Nirmala Sitharaman will present the 2024 Union Budget on 23rd July. This Budget is expected to have announcements on policies, schemes, income tax rate slabs, and more that are likely to affect everything around us.

To simplify this year’s Budget and to decode its impact on your life, your investment portfolio, and all that you do, we bring you #BudgetSimpleHai!

Join us on our website or head over to any of our social handles to get the latest updates on the Union Budget as it happens. Read in-depth reports, watch videos, and get a clear understanding of what’s in store.

Kyunki Bajaj Broking ke saath, #BudgetSimpleHai

Budget 2024: Key points for share markets

Like every year, the Budget is likely to have a significant influence on the nation's economy, interest rates, and stock markets.

Generally, stock market performance mirrors economic conditions, and there is a long-term relationship between stock prices and interest rates. The investment and spending plans announced by the finance minister will affect the fiscal deficit, which in turn will influence the money supply, economy, and interest rates in the country.

Usually, high interest rates increase the capital cost for industries. This reduces profitability and leads to a drop in stock prices. Conversely, when interest rates are low, the capital cost decreases, boosting profitability and increasing stock prices.

In conclusion

While the interim budget 2024 may not have reshaped the economic landscape, it offers crucial insights into the nation's economic status and upcoming priorities. Businesses and investors can use these insights for strategic planning and decision-making.

The full Budget for FY 2024-25 will highlight the government's vision and strategies and have a significant impact on not just the markets but on all that we do.

That wasn’t too hard to understand, was it? Stay tuned for the latest updates on the Union Budget with Bajaj Broking. Because with us, #BudgetSimpleHai

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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Frequently Asked Questions

How have past Union Budgets impacted the stock market?

Answer Field

Investor activity usually spikes around Budget periods, increasing volatility. Despite this, Budget Day reactions have been moderate, with gains or losses under 2% in 8 of the last 10 years. Notable exceptions include 2013's significant loss and 2021's strong gain.

Which sectors are likely to benefit or be adversely affected by the Union Budget 2024?

Answer Field

According to financial analysts, sectors such as the power sector, defence, infrastructure, railways and renewable energy sectors will remain in focus in budget 2024. 

What are the key factors in the Union Budget 2024 that could affect the stock market?

Answer Field

The stock market conditions are impacted by the Union Budget. For example, measures for fiscal consolidation, allocation towards infrastructure projects and changes in personal or corporate taxation can affect investor sentiment.  

How can investors prepare their portfolios before the Union Budget 2024?

Answer Field

It is recommended that long-term investors do not alter their portfolios solely based on Budget expectations. Instead, they should wait for the government’s clear priorities and gradually invest in sectors likely to benefit

What immediate market reactions can be expected after the Union Budget 2024 announcement?

Answer Field

The Indian stock market is reaching record highs, driven by strong economic growth, easing inflation, and expectations of a balanced Union Budget 2024. The Budget aims at fiscal consolidation, enhancing manufacturing, infrastructure, and rural sectors, providing fresh impetus to the market.

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