With the Union Budget 2024 approaching, investors are looking for strategic ways to make the most of their investments. Here is some suggestions from our experts related to the topic: stocks to buy before Budget. Our experts have identified five promising stocks to consider buying ahead of the budget announcement: SBI Card, RITES, Oberoi Realty, KPIT Tech, and HBL Power. This article explores why these stocks are recommended and what makes them potential winners.
Market Overview
The Indian stock market recently experienced a dip due to global tensions, particularly the US-China trade war. The Nifty 50 index fell over 125 points, the BSE Sensex dropped around 400 points, and the Nifty Bank index corrected by over 300 points during early morning trades. Despite this, experts see this downturn as an opportunity for strategic investment rather than a cause for alarm.
Expert Insights about top stocks to buy before Budget
According to Tradex.live, the Indian stock market has shown signs of a trend reversal after a sharp sell-off last Friday. This trend is expected to continue until the Union Budget 2024 is announced. The budget, presented by the Modi 3.0 Government, is a crucial event that outlines the government’s fiscal policies and spending plans for the year ahead.
Global and Domestic Factors
Experts note that global cues remain negative due to the rising US-China trade war tensions. However, they also point out that investors should focus on companies that have expanded their capital expenditure (CAPEX) in recent quarters. The budget is expected to be growth-oriented, benefiting sectors like railway, infrastructure, energy, oil and power, auto, and banking.
Recommended top 5 stocks to buy before Budget:
1. SBI Card
Sugandha Sachdeva, Founder of SS WealthStreet, recommends buying SBI Card around ₹680 to ₹685, with a target of ₹840 and a stop loss at ₹595. SBI Card is expected to perform well due to its strong market position and expansion efforts.
2. Oberoi Realty
Oberoi Realty is another top pick. Sugandha suggests buying this stock at ₹1570 to ₹1580, targeting ₹2050 with a stop loss at ₹1280. The company’s robust construction quality and premium residential projects make it a solid investment.
3. RITES
RITES, a leading player in the railway and infrastructure sectors, is recommended for purchase at ₹650 to ₹660, with a target of ₹880 and a stop loss at ₹520. The company’s significant role in national infrastructure projects positions it well for growth.
4. KPIT Tech
KPIT Tech, involved in automotive engineering and digital transformation, is another strong contender. Sugandha advises buying at ₹1690 to ₹1695, with a target of ₹2080 and a stop loss at ₹1500. The company’s innovative solutions in the automotive sector make it a promising stock.
5. HBL Power
Lastly, HBL Power is recommended for its potential in the energy sector. Sugandha suggests buying at ₹540 to ₹550, with a target of ₹765 and a stop loss at ₹460. The company’s advancements in power solutions are expected to drive its performance.
Strategic Approach
Growth-Oriented Budget
Experts believe that the Union Budget 2024 will be growth-oriented, focusing on infrastructure and allied segments. This focus is likely to benefit companies involved in these areas. Tradex advises stocks to buy before Budget 2024 looking at companies with a history of CAPEX expansion and debt reduction. Such companies are well-positioned to gain from budget announcements.
Market Volatility
Investors should be prepared for market volatility around the budget day. Historical data shows high volatility on budget days, but strategic investments in quality stocks can yield positive results. Staying informed and cautious is key to capitalizing on opportunities while managing risks.
Conclusion
The Union Budget 2024 presents a significant opportunity for investors to strategically invest in promising stocks. Experts recommend focusing on companies with strong CAPEX histories and potential growth in sectors like infrastructure, energy, and banking. By considering the recommended stocks—SBI Card, RITES, Oberoi Realty, KPIT Tech, and HBL Power—investors can position themselves for potential gains. Staying informed and ready to act on budget announcements can help navigate market volatility and make the most of investment opportunities.
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