Stock market today: Power, infra stocks among top gainers as FM Sitharaman tables Economic Survey 2024 | Stock Market News

Stock market today: After a cautious opening on Monday, shares of the power and infrastructure segment witnessed strong buying once Finance Minister Nirmala Sitharaman tabled the Economic Survey 2024 in the parliament. The infrastructure segment gained momentum after trading red in the early morning session. It surged around 1.30 percent while the power segment gained around 1.20 percent within a few minutes of the presentation of the Economic Survey of India. According to stock market experts, the Economic Survey has predicted India’s real GDP growth to be 6.5-7 percent in FY25. This means the Budget 2024 would be a growth-oriented budget focusing on job creation and improving infrastructure and allied segments.

Why are power infra stocks rising?

Speaking on the reason for the rise in power and infra stocks post-Economic Surevy 2024, Saurabh Jain, Vice President of Research at SMC Global Securities, said, “The Economic Survey 2024 indicates that the Budget 2024 will be a growth-oriented budget. The Government of India (GoI) is expected to announce some big infrastructure, power, and energy projects.”

Jain said that the Indian GDP growth predicted in the Economic Survey 2024 is below the RBI estimates, but taking this survey as a blueprint, we can expect the government to balance job creation and growth in this budget.

Echoing Saurabh Jain’s views, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “Banking and auto segment may also witness valu picking if the budget 2024 comes on the expected lines. The GoI will have a huge challenge on the job creation front, and at the same time, they need to maintain the demand in the market. As the Indian economy is looking in sound condition and has managed to keep inflation under control in the Economic Survey of India, we might see allied segments like auto, banking, and financial segments reap the trickle-down benefit.”

Economic Survey 2024

The Economic Survey document shows India’s GDP growth at 6.5-7 percent in FY25. “The survey conservatively projects a real GDP growth of 6.5–7 percent, with risks evenly balanced, cognizant of the fact that the market expectations are on the higher side,” it stated.

Notably, this growth forecast aligns with the International Monetary Fund’s estimate of 7 percent. However, it is below the Reserve Bank of India’s estimated 7.2 percent growth for FY25.

The Economic Survey document said that retail inflation has come down to 5.4 percent in FY24, compared to 6.7 percent in FY23.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.