Budget 2024: Here's All You Need To Know Before Opening Bell On July 23

Benchmark equity indices settled in red for the second day in a row on Monday following selling in index heavyweights Reliance Industries and Kotak Bank on muted earnings and caution ahead of the Union Budget 2024-25.

The BSE Sensex fell by 102.57 points or 0.13 per cent to settle at 80,502.08. The NSE Nifty50 slipped 21.65 points or 0.09 per cent to 24,509.25. In contrast, the broader market recovered from the last few day's sell-off and settled 1 per cent higher. Auto, Metals, and Pharma gained more than 1 per cent while IT, FMCG, Realty, and Energy were the losers to the tune of 0.5 per cent.

Ahead of the opening bell, investors await Finance Minister Nirmala Sitharaman to present her seventh consecutive budget in Parliament later in the day. According to data from last 10 years, the Indian stock market settled in red in eight out of ten sessions on the budget day announcement.

Sitharaman tabled the Economic Survey document in Parliament on Monday, July 22. "India’s real GDP grew by 8.2 per cent in FY24, posting growth of over 7 per cent for a third consecutive year, driven by stable consumption demand and steadily improving investment demand," said the survey.

According to experts, the Union Budget is expected to remain a growth-oriented budget and investors are exercising caution. Sectors like railway, infrastructure, energy, oil, power, auto, and banking are likely to be in focus.

Ahead of the budget, volatility in the markets remained on the higher side for the fifth session in a row. The India VIX jumped 4.13 per cent to the 15.44 level on Monday.

Here’s what the experts say ahead of the Budget 2024:

"The conservative economic growth forecast for FY25, presented in the economic survey, has introduced some spikes in volatility ahead of the budget. Further, the below-estimated Q1 results from certain index heavyweights like RIL added to apprehensions of a slowdown in earnings growth in FY25. Although the budget is anticipated to be favorable, investors will closely monitor whether it continues to tickle traction, given high valuations and the risk of a downgrade in earnings," said Vinod Nair, Head of Research at Geojit Financial Services.

“Rising US-China tension, US President Joe Biden's withdrawal from the president race and mixed set domestic earnings so far especially from heavyweights has dented investor sentiments. Moreover the market is cautious ahead of Union Budget tomorrow, especially given the conservative growth forecast in the economic survey released during the day,” said Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services Ltd.

“Though the budget is largely expected to be growth-oriented, with the announcement of some measures aimed at addressing rural economy; this is largely factored in by the market. Investors will look out for signs of further traction. We could see some volatility tomorrow along with sector and stock specific actions,” Khemka added.

Aamar Deo Singh, Sr. Vice President of Research, Angel One Ltd says since this is the first coalition government post 2014, the budget of 2024 will be a litmus test for the administration because markets, investors, and the people of this nation have high expectations.

“This budget is probably going to be more consumption-focused, with a stronger focus on lower-class and rural households. It is also highly predicted that social spending in both rural and urban areas will increase, and that lower income slabs may receive tax breaks. The markets are optimistic about controlling inflation while also emphasising continuous economic expansion without compromising capital investment. Because of the high valuations and the requirement for more capital infusion into the economy, there is also a chance that disinvestment in PSUs would experience increased buoyancy,” Singh said.

“This Budget is projected to put a focus on industries including infrastructure, FMCG, fertilisers, healthcare, and defence. It would be prudent that investors exercise caution ahead of the budget  and consider investing opportunities once the budget's fine print is released,” he added.

Here are the key stocks to watch on July 23:

RailTel: The railway PSU said it has secured a major order worth Rs 186.8 crore from the Ministry of Railways. The contract involves the design, development, implementation, operations, and maintenance of the hospital management information system (HMIS) and an integrated empanelled hospital referral portal for Indian Railways.

Suzlon Energy: The company reported consolidated net profit of Rs 302 crore for June 2024 quarter, up 200 per cent from Rs 101 crore posted in the corresponding quarter of previous financial year. The company's revenue from operations in the reported quarter stood at Rs 2,016 crore, up 50 per cent compared to Rs 1,348 crore reported in the year-ago period.

Federal Bank: The Reserve Bank of India (RBI) on Monday gave its approval for the appointment of Krishna Venkat Subramanian as managing director and chief executive officer of Federal Bank with effect from September 23. Subramanian will hold the position for a period of three years.

Indian Oil: The company aims to increase its natural gas sales three times and expand its renewable energy capacity to 31 GW by 2030. Additionally, the company plans to establish a 5GWh lithium-ion battery production capacity by 2031 as part of its strategy to diversify its energy portfolio.