Union Budget 2024 / What should be the strategy for investing in the stock market on budget day?

Union Budget 2024: Finance Minister Nirmala Sitharaman will present the General Budget (Budget 2024) in Parliament at 11 am today. Budget is a very big event for the stock market. If we look at the trend of the last few years, then there is a big fluctuation in the stock market during the budget speech. This trend may continue during today's budget as well. In such a situation, if you are a small investor in the stock market, then what should be your strategy for today? Let's know.

Big event for stock market

According to stock market experts, the stock market is waiting for the first budget of Modi 3.0. Union Budget 2024 is an important event in the financial calendar as it outlines the government's fiscal policies and spending plans for the coming year. Experts say that the Union Budget is expected to be a growth-oriented budget, which means that there will be an emphasis on railways, infrastructure, energy, oil and power, auto and banking sectors. That is, there may be investment opportunities in the companies of this sector.

Focus expected on these sectors

The upcoming budget is expected to be a growth-oriented budget, therefore, infrastructure and allied sectors are expected to benefit from such a budget. A growth-oriented budget and good condition of the national economy are also likely to generate demand in the banking and auto segments. Apart from this, the government may announce an increase in strategic allocation for the agriculture sector, public healthcare, railways, power/renewable energy, real estate, defense, logistics and tourism. There will be investment opportunities in good companies of these sectors. Apart from this, some amendments in the income tax slab or increase in standard deduction under the new tax system are expected to increase disposable income. Overall, the market movement today and in the coming days will depend on the announcements made in the budget.

What should be the strategy for small investors?

Market experts say that it is common to have big fluctuations in the stock market on the day of the budget. If the market weakens after the budget, do not sell shares in panic. Hold the stock of a good company. At the same time, if you get an opportunity in a good company, then invest as well. If there is a big surge in the stock market during the budget speech, then it would be right to wait. Investment opportunities will be available again in the future. It is not right to take any decision in haste.