Budget to budget: Realty and PSU stocks shine; here's how various sectoral indices fared

Jefferies estimates direct RBI impact on Paytm's wallets and payments business at 20-30% of EBITDA, with potential reputational damage affecting EBITDA further by 20-25%.

All NSE indices have gained in the past one year since the last budget. Notably, the Nifty Realty index has recorded the highest gain at approximately 104 percent, followed by the Nifty CPSE index with a jump of 95 percent.

Investors have shown huge interest towards realty stocks amid robust property sales and sharp rise in net profit. Luxury real estate has been booming post COVID-19, noted analysts.

The rally in PSU stocks is attributed to the success of the Atmanirbhar Bharat initiative and the Make in India program, yielding positive results for most listed PSU companies. As general elections approach, increased government spending and more order wins will further contribute to the sector's performance, particularly defence and railways, believes the Street.

Also Read: PSU stocks to watch on Budget Day: RVNL, Hindustan Aeronautics, NHPC among others

The recent surge in PSU stocks has also been credited to the ruling BJP party winning key state elections. Market optimism centers on the expectation of the government's return in the general elections, ensuring policy continuity.

How other sectoral indices fared?

Nifty Infra and Energy both surged over 58 percent in the past one year, while Nifty Oil & Gas and Auto saw gains of 44 percent each. Nifty Pharma and Nifty Healthcare gained 43 percent each, while Nifty Consumer Durables and Metals rose by 31 percent and 27 percent, respectively.

Nifty FMCG and IT indices increased by 22 percent each, and Nifty Bank showed the smallest gain at 12 percent. In the broader spectrum, Nifty MidCap and SmallCap advanced by 57 percent and 67 percent, respectively.

Also Read: India Budget: What real estate sector wants from Nirmala Sitharaman

In 2023, the Indian markets experienced a robust rally driven by improved macroeconomic conditions, a strong domestic economy amidst a global slowdown, and substantial fund inflows from both domestic and foreign investors. Nifty 50 gained close to 20 percent in the year gone by.