Stock market sentiment is weak ahead of Union Budget 2025. However, on January 23, major market indices were seen in the green for the second consecutive day. But, the major indices have remained in a tight range for the last several weeks. Experts say that the government can make some big announcements in the Union Budget to increase consumption, which will have a good impact on the stock markets. Some experts believe that the sentiment in the stock market may improve after the Union Budget.
Measures to increase consumption in the budget will boost growth in many sectors
Economists, in their meeting with Prime Minister Narendra Modi in late December, had advised taking measures to increase consumption. If the government takes measures to increase consumption, it will benefit companies in many sectors including FMCG, auto, consumer durables. It is estimated that the government may also increase the capital expenditure target by at least 10 percent. This will increase the shine of shares of construction companies.
Opportunity to invest in these stocks
Market experts say that before the Union Budget, investing in shares of companies like L&T, Ultratech Cement, Tata Motors, M&M, Hero MotoCorp, Adani Green Energy, HUL and ITC can yield good profits after the budget. The special thing is that due to the ongoing decline since October last year, the share prices of many big companies have come down significantly.
Poor performance of L&T and Hero MotoCorp in the last one year
L&T shares have made investors rich. However, the returns of this stock in the last one year have been negligible. But, its performance over the long term has been excellent. This stock has given 19,000 percent return since its listing in IPO. Construction related activities will increase after the Union Budget. L&T will directly benefit from this. At noon on January 23, L&T shares were trading at Rs 3,512 with a weakness of 0.13 per cent. Hero MotoCorp will benefit from increased income in rural areas. This stock has given negative returns of about 8 percent in the last one year. On January 23, the price of this stock was running at Rs 4,103 in the afternoon.
ITC stock has fallen 4 percent in the last one year
ITC is one of the largest companies in the FMCG sector. ITC will directly benefit from the government’s measures to increase consumption in the Union Budget. ITC shares have given negative returns of 4 percent in the last one year. On January 23, in the afternoon, the price of this stock was running at Rs 440.
HUL and Tata Motors also disappointed
HUL is the largest company in the FMCG sector. Shares of this company may rise after the budget. This stock has given negative returns of more than 2 percent in the last one year. On January 23, its price was falling at Rs 2,320 with a decline of 0.94 percent. Demand for Tata Motors vehicles has increased in rural and urban areas. The shine of this stock may increase after the budget. Tata Motors shares have given negative returns of about 6 percent in the last one year.