As the Budget 2024 announcements near, retail investors are on edge, speculating how the forthcoming fiscal changes will influence the investment climate. Recently the Nifty trading reached record high levels, traders in such a scenario would be closely tracking the market ahead of the Budget 2024 presentation.
Finance Minister Nirmala Sitharaman will present the Union Budget 2024 on July 23.
Investors wonder, how will the upcoming budget influence overall market sentiment and economic outlook for the coming year. “The recently concluded Lok Sabha elections didn't come on the expected lines of the ruling party. Therefore, I see a tilt toward populism, especially considering the upcoming state elections this year which becomes a crucial battleground to balance the political power equation,” says Sumit Duseja, CFA (Co-Founder & CEO, Truemind Capital).
As per some media reports, historically, Nifty has moved within a 4 per cent range on Budget announcement day.
“Markets have remained resilient in the run-up to the budget and there are both great expectations as well as justified fears from various pockets of the industry,” states Naresh Bulchandani, CFA, CAIA – Head of Products & Advisory at Merisis Wealth. He further says that “with various state governments starting to announce various loan waiver schemes as well as other freebies to attract and retain voters, this will definitely have a bearing on the nature of the budget that will be tabled in the coming week.”
Duseja opines that the weightage of infrastructure capex spent would continue to stay at a higher level. “Overall a balanced budget with a focus on boosting the demand will be positive for the markets as well as for the economy,” he states.