25 stocks that gained most during Sitharaman’s budget speech

“STT (securities transaction tax) on options goes up from 0.062% to 0.1%. STT on futures goes up from 0.0125% to 0.02% from October 1st… If the idea was to cool down the activity in the markets, this might just do the trick,” said Nithin Kamath, founder and CEO, Zerodha, in a post-budget tweet. Budget summary for us

STT on options goes up from 0.062% to 0.1%. STT on futures goes up from 0.0125% to 0.02% from October 1st.

We collected about Rs 1500 crores of STT last year, @zerodhaonline . If the volumes don't drop, this will increase to about Rs 2500 crores at the new…

— Nithin Kamath (@Nithin0dha) July 23, 2024 On July 23, the Nifty 50 index remained flat as stocks had a mixed reaction to the Modi 3.0 government’s budget presented by finance minister Nirmala Sitharaman.However, the biggest downer was the short-term capital gains tax, which was raised from 15% to 20%. BSE and Angel One reacted to the news. While Angel One shot up during the day, BSE remained flat at the news.But a look at the macro picture shows that the Indian stock market is still attractive. As per International Monetary Fund (IMF), the country is likely to be the third-largest economy by 2027. India’s contribution to global growth is also estimated to rise by 200 basis points in five years.While consumption as a theme has not worked out in the Indian market for the past one year before budget day — ITC has given negative returns, Titan is up only 9% and P&G gained 5%. But with the government now wanting to concentrate on rural spending and improve job prospects, there is a general feeling that the FMCG (fast-moving consumer goods) segment will benefit the most.ITC, Titan and Godrej Consumer Products saw their stock prices go up after the finance minister’s speech, which incentivised the consumption sector. The capital expenditure outlay for the next year has been increased by 11.1% to ₹11 lakh crore, which would be 3.4% of gross domestic product (GDP).ET Prime looks at the list of 25 stocks from the Nifty 500 index that did well during the budget announcement. medium112019469Observations1. Sobha Developers, BSE and Suzlon Energy shot up by more than 100% in the past one year. The stocks rose 3%, 4% and 5%, respectively, during the budget speech.2. AstraZeneca, Borosil Renewables and CE Infosystems became the top performers in the list. The three stocks moved up by more than 7% during the day.3. A lot of healthcare and FMCG stocks made it to the list. Among them, ITC moved the highest by 4% followed by Dabur, Tata Consumer, Avanti Feeds, P&G Hygiene and Godrej Consumer Products. Overall, Nifty FMCG did well among the sectoral indices. It moved up 2% during the day when others were trading in red.4. Almost all stocks from the list are trading at high valuations already. Stocks like Rajesh Exports and Sobha Developers, which moved up during the day, were trading at more than 400x PE (price-to-earnings ratio). Angel One and Federal Bank were the only stocks that were trading below 20x.5. Sobha and Oberoi Realty rose and then fell through the day. “The 2024 Union budget marks a pivotal moment for the real estate sector. I’m both encouraged and excited by the government’s strategic initiatives. The substantial allocation of ₹50,000 crore towards infrastructure development is poised to invigorate our industry, enhancing both urban and rural landscapes,” said Sanjeev Srivastva, chairman and founder of Assotech Group, a real estate company.According to him, the introduction of PM Awas Yojana Urban 2.0 with a significant investment of ₹10 lakh crore in urban housing underscores the government’s commitment to addressing the country’s urban housing needs.“This initiative will provide a substantial boost to the real estate market, fostering growth and creating new opportunities for developers and investors alike,” he added.