The upcoming budget on July 23rd, 2024, is highly anticipated following the recent Lok Sabha election results. The market has shown significant bullishness, with Sensex crossing 79,000 and Nifty surpassing 24,000. However, profit booking has also been observed, indicating potential opportunities for investors.
This article will delve into key sectors to watch for in the upcoming budget, including Railways, Renewable Energy, Infrastructure, and Defense. Understanding these sectors can help investors make informed decisions and capitalise on potential opportunities.
**Railways: A Sector on the Move**
The railway sector has seen tremendous changes over the past few years. With a budget allocation of Rs 2.52 lakh crore last year, there are expectations for further increases this time. Key areas of focus include modernising Vande Bharat, the Amrit Bharat Scheme, and safety upgrades such as the Kavach train accident prevention system.
- **Modernizing Vande Bharat**
- **Amrit Bharat Scheme**
- **Safety upgrades**
- **Network expansion**
- **Track electrification**
- **New trains and bogies**
With an allocation of Rs 6,500 crores for track electrification in the last budget, investors should watch for any increases this year. The railway sector remains a key area for investment, with significant growth potential.
**Renewable Energy: A Game Changer**
The renewable energy sector is poised to be a major game changer. The government's focus on clean energy and sustainable development makes this sector highly attractive for investment. Details on this sector were covered in a previous video, but it remains a critical area to watch in the upcoming budget.
Investors should keep an eye on government initiatives and budget allocations aimed at boosting renewable energy projects. This sector holds immense potential for long-term growth and sustainability.
**Infrastructure: Building the Future**
India aims to become a developed economy by 2047, and infrastructure investment is crucial to achieving this goal. The government plans to invest a minimum of 10% of GDP in infrastructure, making it a key area for budget allocations.
- **Bharat Mala**
- **Sagarmala**
- **Uran**
- **Roadways**
- **Airways**
- **Waterways**
- **PM Suryoday**
- **PM Awas Yojana**
With a significant focus on road network growth and major infrastructure projects like the Statue of Unity and Zojila Tunnel, the infrastructure sector is set for substantial investment. Mutual fund houses have high expectations for infra funds, indicating strong performance potential.
**Defense: Strengthening the Nation**
The defense sector has seen remarkable transformation, with a focus on “Make in India” initiatives and export growth. The interim budget allocated Rs 6.21 lakh crore to defense, highlighting its importance.
- **Make in India**
- **Export growth**
- **Water defense**
- **Shipbuilding**
- **Port expansion**
With a 31X increase in export levels over the past decade, the defense sector is set for continued growth. Investors should watch for budget allocations and government initiatives aimed at boosting domestic production and exports.
