Budget 2024: These Sectors Were The Biggest Victors And Losers

Finance Minister Nirmala Sitharaman presented her seventh consecutive union budget on Tuesday. Job creation, infrastructure development, and support for MSMEs were among areas that found a push within the budget, along with maintenance of fiscal prudence.

Sitharaman unveiled a package of schemes and initiatives for boost to employment, skilling and youth, with an outlay of Rs 2 lakh crore.

Here is a look at sectors which were losers and winners of this budget, as per Bloomberg research.

The budget introduced substantial measures for India's youth, including wage incentives for new job entrants and expansive skilling programs. Stocks of hiring firms surged, with TeamLease Services Ltd. shares rising by 18% and Quess Corp. by 6.5%.

States allied with the Bharatiya Janata Party, such as Andhra Pradesh and Bihar, received significant attention, with the former receiving allocations totaling Rs 15,000 crore. Bihar has been given an allocation of Rs 26,000 crore for infrastructure and development projects.

Stocks of companies based in these states, like Power Mech Projects Ltd. and KNR Constructions Ltd., saw gains post-announcement.

The government pledged robust fiscal support as it retained a capital expenditure plan of Rs 11.11 lakh crore, which is 3.4% of the GDP. This is expected to boost infrastructure projects, bolster economic activity and create employment opportunities.

The government also announced changes in income tax slabs and an increased standard deduction (from Rs 50,000 to Rs 75,000), with the aim to reduce the tax burden on the middle class and boost disposable incomes.

Higher income tax exemptions and reduced import levies on select items are expected to enhance consumer spending, benefiting consumer staple firms and two-wheeler makers.

Custom duty cuts on precious metals like gold (down to 6%) spurred gains for jewellery-makers, with Titan Co. shares witnessing their highest surge in two years and Kalyan Jewellers India Ltd. stock rising 6.1%.

A significant allocation of Rs 2.6 lakh crore for rural development, including agriculture and infrastructure, aims to uplift rural communities and enhance agricultural productivity.

Special focus on labour-intensive manufacturing sectors and the abolition of the angel tax for startups are expected to bolster growth and innovation in these sectors.

A venture fund of Rs 1,000 crore earmarked for the burgeoning space sector aims to foster innovation and competitiveness among Indian space startups.

Increased long-term capital gains tax (12.5% from 10%) and higher short-term capital gains tax (20% from 15%) dampened investor sentiment, leading to a decline in equity markets.

While long-term capital gains tax on real estate was reduced, the removal of indexation benefits negatively impacted top developers like DLF Ltd. and Godrej Properties Ltd.

The budget lacked specific incentives for electric vehicle manufacturing, disappointing stakeholders in the transport and automotive sectors.