Budget 2024: Key Insights from Market Reactions to Union Budget

Tuesday, 23 July 2024, 06:10

As the Union Budget 2024 unfolds, Indian shares have experienced volatility, influenced by gains in financial stocks and public sector companies. Investors await critical policy announcements from Finance Minister Nirmala Sitharaman, which are expected to shape the market's future direction. According to Dr. V K Vijayakumar of Geojit Financial Services, corporate profitability has significantly improved, highlighting a potential resilience in the stock market despite current high valuations. This optimism suggests that the market may remain robust heading into FY25.
Economictimes
Budget 2024: Key Insights from Market Reactions to Union Budget

Budget 2024: Market Volatility and Expectations

Indian shares have shown mixed performance on the day of the Union Budget 2024 as investors brace for significant policy announcements from Finance Minister Nirmala Sitharaman. The anticipation surrounding these announcements has resulted in heightened market volatility.

Market Analysis

Driving the market are gains in financial stocks and public sector companies. Notably, the Economic Survey reveals remarkable growth in corporate profitability, which has quadrupled over the last three years, increasing from Rs 5.3 lakh crores in FY20 to Rs 20.6 lakh crores in FY24. The corporate profit to GDP ratio for Nifty 500 companies has also risen to a 15-year high of 4.8%.

Future Expectations

  • This sharp turnaround indicates a robust earnings outlook, suggesting that corporate profitability may continue to improve in the upcoming fiscal year.
  • This could provide a strong foundation for market resilience, even in the face of elevated valuations.

In summary, while the government budget and associated announcements from Nirmala Sitharaman are pivotal, the robust growth in corporate earnings positions the Indian stock market favorably for the future.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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