Union Budget 2024: Impact on different sectors

Measures taken for FY23-24E

Impact

Key Stocks

Government capex in road segment for FY24E is pegged ~25% higher at Rs 2.6 lakh crore. Furthermore, segments like Housing (PM Awaas Yojana), Water (Jal Jeevan mission) has seen a growth in outlay to the tune of ~66% YoY, 17% YoY

Positive for EPC players engaged in said segments as ordering activity will witness a boost

L&T, KNR Construction, Thermax, PNC Infra, NCC, PSP Projects

Capital investment outlay increased 33% YoY to Rs 10 lakh crore and focus on Green Energy based focus (Green hydrogen/approval high value renewable projects)

Massive increase in allocation towards capex will increase order inflows across sectors such as power T&D, water, railways, road. On a broad basis, companies in the EPC and products segments are expected to benefit

L&T, Siemens, KEC, SKF India, Techno electric, Action Construction

Within capex segments, railways has garnered lion's share at Rs 2.4 lakh crore. Within railways,

segments such as laying new line (allocation increased by 29% YoY), rolling stock (148% YoY), railway electrification projects have seen robust allocation

The increased allocation in the sub segment of railways will augur well for railway EPC companies, wagon manufacturers, bearing companies, etc

L&T, Siemens, KEC, SKF India, Timken India

Strong focus on Green Capex to augment the value of Green Hydrogen coupled with incremental addition of renewable capacity. The Budget also announced investment support of Rs 8,300 crore to the Ladakh Renewable project (total value pegged at Rs 20,600 crore)

The PLI of Rs 20,000 crore announced before Budget and investments to be made in renewable capacity for viability of green hydrogen ecosystem will involve strong capex in the manufacturing of electrolysers and putting up new generation and transmission infra for renewable power

L&T, Siemens, KEC, Thermax, Anup Engineering