Interim Budget 2024: Trading strategy for Budget Day by HDFC Securities, Arihant Capital, 3 others

livemint.com:

Budget 2024 expectations: Nirmal Bang highlights 6 major themes that could dominate the Interim Budget 2024 Mint gathered insights from five experts on the trading strategy for Budget Day. Here's their advice: Traders would be aware of the trend in the markets around Budget time. The near-term move before the Budget will also influence the trader's strategy.

There could be volatility intraday (but less than that in a normal Budget). If the Budget brings in a lot of rise in capex, rail and defence spending, we may see indices rising mildly during the event. Also Read: Budget 2024: Expect muted infra allocation, focus on defence, EV, says Pramod Amthe of InCred Capital With the quarterly results season in full swing, and the Budget just around the corner, the volatility in the markets remains high.

The General Elections are due in May 2024, so this Budget will be interim only. While we don’t expect any major announcements during this budget, we expect the government will include some popular measures such as more funding for programs like MNREGA to raise the daily earnings of rural areas to stimulate the sluggish rural economy. We may also see the introduction of subsidies.

We also expect that the budget will support sustainable economic development by investing in infrastructure and enhancing the manufacturing sector as part of its “Make in India" campaign. The Budget will also support the government’s intent to keep advancing the transition towards a greener economy that relies less on fossil fuels by focusing on renewable energy (like solar and wind), biofuels (like biogas, ethanol and green hydrogen), and electric transport. Historically also, markets have always seen volatility until the Budget and based on the Budget