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As the Indian Finance Minister, Smt. Nirmala Sitharaman prepares to present the full-year budget for FY25 on July 23, 2024, investors are watching the developments with keen interest. The budget is expected to focus on fiscal consolidation, aiming to keep the fiscal deficit target at 5.1% of GDP. Measures to boost consumption could include lowering the effective tax rate, increasing cooking gas subsidies, and offering interest rate subventions for both rural and urban housing. Additionally, there is anticipation for an expansion of subsidized healthcare coverage and an extension of the Production Linked Incentive (PLI) scheme to enhance manufacturing.
The sectors expected to receive significant focus in the budget are Oil & Gas, Tourism, Power, Infrastructure, and Fertilizers. Bajaj Broking has selected stocks from these sectors that are strong both fundamentally and technically. Here are the stocks to buy, complete with technical details and target prices.
Stock: Oil and Natural Gas Corporation Ltd. (ONGC)
Recommended Price Range: ₹312-324
Target: ₹384
Upside: 21%
Time Horizon: 9 Months
ONGC is a major player in the exploration and production of crude oil and gas. The company plans to ramp up production at its KG 98/2 field to 45,000 barrels per day by Q4 FY25, up from the current 12,000 barrels. Additionally, ONGC aims to achieve a gas production rate of 10 million cubic meters per day by Q4 FY25. The company expects to increase its total production from 39.45 million metric tons of oil equivalent (mmtoe) to approximately 47 mmtoe by FY27. The ONGC share price is currently trading at Rs. 320.15 as of 14:12 PM on NSE.
Technical Analysis:
ONGC has shown a breakout above its decade-long consolidation, signaling a strong uptrend.
Given these technical indicators, ONGC is one of the stocks to buy in the oil and gas sector, with a significant upside potential.
Stock: National Thermal Power Corporation (NTPC) Ltd.
Recommended Price Range: ₹365-375
Target: ₹444
Upside: 20%
Time Horizon: 9 Months
NTPC, India's largest energy conglomerate, is supported by government initiatives that provide financial flexibility and a low cost of funds. The company has a strong performance record with Plant Load Factors (PLFs) significantly higher than the national average. NTPC is expanding into various green initiatives, including green hydrogen, energy storage, nuclear power, green mobility, and round-the-clock renewable energy.
Technical Analysis:
NTPC is trading within a rising channel, indicating strength and continuation of the up move.
With these technical indicators, NTPC emerges as a strong stock to buy in the power sector, promising substantial returns.
Stock: NBCC (India) Ltd.
Recommended Price Range: ₹172-180
Target: ₹219
Upside: 24%
Time Horizon: 9 Months
NBCC has demonstrated robust growth in its order book, reaching ₹64,000 crore in FY24, bolstered by approximately ₹10,000 crore in new orders. The company anticipates an order inflow of ₹25,000 crore in FY25, driven by expanding opportunities in housing, railways, metro projects, and renewable energy.
Technical Analysis:
NBCC has formed a higher base above the recent breakout area, signaling strength and potential for further upside.
Given these technical insights, NBCC stands out as a compelling stock to buy in the infrastructure sector, with significant growth potential.
Stock: Gujarat State Fertilizers & Chemicals Ltd. (GSFC)
Recommended Price Range: ₹245-255
Target: ₹320
Upside: 28%
Time Horizon: 9 Months
GSFC, a public sector company promoted by the Government of Gujarat, manufactures a range of fertilizers and industrial products. The company is targeting a 10% growth in fertilizer sales volumes for FY24 and expects overall sales of industrial products to remain stable in Q4 FY24.
Technical Analysis:
GSFC is poised for a breakout above the triangular consolidation of the last six months, indicating potential for significant upside.
With these technical indicators, GSFC is positioned as one of the stocks to buy in the fertilizers sector, with a robust growth trajectory.
Stock: Thomas Cook (India) Ltd.
Recommended Price Range: ₹235-243
Target: ₹305
Upside: 28%
Time Horizon: 9 Months
Thomas Cook offers a wide range of services, including foreign exchange, corporate travel, MICE, leisure travel, visa and passport services, and e-business. The company has been appointed by the Government of India as the Event Partner for the prestigious G20 preparatory meetings and has successfully executed several significant government initiatives.
Technical Analysis:
Thomas Cook is trading within a rising channel and is expected to test the upper band, indicating a continued uptrend.
Given these technical insights, Thomas Cook is a strong stock to buy in the tourism sector, with a promising outlook.
The upcoming Budget 2024 presents numerous investment opportunities across various sectors. With a focus on fiscal consolidation and measures to boost consumption, stocks from sectors like Oil & Gas, Power, Infrastructure, Fertilizers, and Tourism are expected to perform well. ONGC, NTPC, NBCC, GSFC, and Thomas Cook are some of the stocks to buy, offering significant upside potential based on their technical and fundamental strengths. As always, it is crucial to conduct thorough research and consult with financial advisors before making any investment decisions.
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.
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