Budget 2024: How should investors position their portfolios?

After the Lok Sabha elections the next year i.e. 2024, the attention gets shifted to the Union Budget for 2024-2025. According to the market gurus, it is prudent for investors to book their profits, check the portfolios and focus more on the lasting opportunity areas to manage risks and capitalize on opportunities in view of the existing challenges.

Since the 2024 Lok Sabha polls are over and the Modi-led NDA has won the third term, focus has shifting to the next Union Budget for the financial year 2024-25.

Investors and analysts are assessing ways to manage the possible volatility as the Indian stock market awaits the 2019 Budget. Industry experts provide their thoughts on how to handle investments at this difficult time, as historical data prior to the Budget release showed varied outcomes.

Currently, the market analysts suggest that the investors align their strategies with the new fiscal policies that are incoming and take cues from the movements in the markets, they should opt for booking gains, reviewing portfolio and focus on compound growth industries. They pointed out that while the financial crisis is a fact, investors can avoid possible risks or enhance their opportunities during this period, if they are active and know what is going on.

Nishit Master, Axis Securities Portfolio Manager

Based on their expectations from the Budget, we believe long-term investors shouldn’t make any preliminary adjustments to their holdings. Long-term investors can gradually increase their investments in areas that can profit from the government’s goals once they are made known.

Ravi Singh- SVP, Retail Research, Religare Broking

The markets are now at all-time highs, and significant declines are not anticipated. As we anticipate seamless policy continuation in the nation and ongoing focus on capital expenditures on defence and railroads, infrastructure investment, sustainability models, modernization of transportation networks, and improvement in environmental outcomes, long-term investors do not need to make pre-Budget changes in the portfolio.

Therefore, one should be careful in the case of chances that are expected to emerge soon to book profits. In the period before the announcement of the budget the long-term stockholders can rearrange their portfolio through divesting themselves of the poorer performing corporates, while traders can speculate and make money through short-term operational speculations wherein they can buy the value stocks at a discount that is lower than its real value. At the end of the year, people can expect that the Sensex as well as the Nifty will gradually get closer to their record marks of 81,000 and 24,900, respectively.

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