#KeySectors2025

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Union Budget 2025: Key Sectors, Stock Market Impact, and Investment Opportunities

Published on: January 17, 2025

Overview

As India gears up for the Union Budget 2025, expectations are high for initiatives aimed at boosting economic growth while maintaining fiscal discipline. This blog explores the potential impact of the budget on key sectors, stock market performance, and investment opportunities.

Key Sectors to Watch

Agriculture

The government is expected to introduce reforms to enhance farmer welfare and productivity. Anticipated measures include easing loan repayment norms and increasing the coverage of Minimum Support Price (MSP). Reduced GST on agricultural inputs like seeds and pesticides is also expected. Companies to Watch: UPL Limited, Coromandel International.

Automobile

Sustainable mobility is a key focus, with potential GST reductions for hybrid and electric vehicles. These initiatives aim to bridge the gap between traditional and electric mobility. Companies to Watch: Tata Motors, Mahindra & Mahindra.

Real Estate

Real estate expects measures to boost housing demand, including higher tax exemptions on housing loans and granting industry status to the sector for better funding access. Companies to Watch: DLF Limited, Godrej Properties.

Electronics Manufacturing

The government plans to enhance local electronics production through a ₹25,000 crore Production-Linked Incentive (PLI) scheme. This initiative aligns with the 'Make in India' campaign. Companies to Watch: Dixon Technologies, Bharat Electronics Limited (BEL).

Pharmaceuticals

Streamlining regulations and promoting R&D are priorities for this sector. These measures will reinforce India's position as a global pharmaceutical hub. Companies to Watch: Sun Pharma, Dr. Reddy's Laboratories.

Textiles

The textile sector is poised for financial incentives and tariff reductions, aiming to boost domestic production and capture a larger share of global markets. Companies to Watch: Vardhman Textiles, Arvind Limited.

Stock Market Outlook

January 2025 is expected to be a volatile month for the Indian stock market, influenced by global events and domestic budget announcements. Investors should focus on sectors with favorable policies and monitor key stock levels.

Key Stock Levels

Tata Consultancy Services (TCS): Support at ₹3,500, resistance at ₹4,000.

Infosys: Support at ₹1,400, resistance at ₹1,700.

HDFC Bank: Support at ₹1,500, resistance at ₹1,800.

ICICI Bank: Support at ₹800, resistance at ₹950.

Sources:

Reuters: India Growth and Fiscal Goals

Motilal Oswal: Sectors and Stocks to Watch

Economic Times: Stock Market Outlook

Angel One: Market Volatility in January