Who wins and who loses after Budget 2024?

Finance Minister Nirmala Sitharaman presented the interim budget on February 1.

The interim budget's focus on fiscal discipline, infrastructure development, green energy, and research and development presents opportunities across sectors. While banks, green firms, electronics makers and travel operators are set to benefit, the unchanged tax structure poses challenges for consumption stocks and companies that benefited earlier from the China-plus-one theme.

Winners

Banking sector: Banks such as Kotak Mahindra, SBI, and ICICI Bank are set to benefit from lower government borrowing and a rally in bonds, supporting bank profitability through mark-to-market gains.

Clean energy and electronics: Initiatives like the Pradhan Mantri Suryoday Yojana boost companies like Visaka Industries and Borosil Renewables. The focus on EV charging and solar installations benefits Tata Power, while increased budget allocations for semiconductors and electronics manufacturing aid companies like Dixon Technologies and Kaynes Technology.

Travel and tourism: The government's focus on developing tourist spots benefits hotel chains (Indian Hotels, Lemon Tree Hotels) and luggage companies (Safari Industries).

Infrastructure: Increased capital expenditure allocation boosts infrastructure stocks like L&T and HG Infra Engineering, and benefits KEC International in rail infrastructure development.

Agriculture: The focus on the use of Nano DAP and extending its application to all climate zones is a big positive for Coromandel International and Paradeep Phosphates. Initiatives under PM's Matsya Sampada Yojana should act as a tailwind for shrimp exporters such as Avanti Feeds and Apex Frozen Foods and Dairy development initiatives to benefit Dodla Dairy and Heritage Foods.

Research & development: A new corpus for R&D loans aids pharma, tech, and defense sectors, benefiting companies like Syngene, Concord Biotech, Sun Pharma, and Data Patterns.

Losers

China-Plus-One Firms and consumption stocks: The lack of tax and duty structure changes negatively impacts overall consumption and sectors focusing on diversifying supply chains away from China.