Stock to buy before Budget 2024: Anil Singhvi picks this PSU stock for up to 47% gains; check details

The Indian markets began the week on a bullish note, with both indexes rising modestly during the opening trading on Monday morning.

The Nifty 50 index increased by 0.23 per cent, or 52 points, to 24,555.30, while the BSE Sensex index increased by 0.22 per cent, or 146 points, to 80,680 in early trade.

At 12.53 PM, the Sensex was 0.26 per cent up at 80,732.71 while the Nifty jumped 0.38 per cent to Rs 24,594.55.

Meanwhile, market wizard and Zee Business managing editor Anil Singhvi has picked a PSU stock to buy before budget.

The Union Budget 2024 is scheduled to be presented on July 23.

PSU stock to buy before Budget 2024

Anil Singhvi has chosen Oil and Natural Gas Corporation Ltd (ONGC) stock from a long-term perspective. It is the biggest stock in oil and gas sector in Nifty. Investors can buy the stock for 12-18 months. The first target of the stock is 375, the second is 400, and the third is 450. 

On Friday (July 12), shares of ONGC closed at Rs 306.95 each. This means, the stock can provide up to 47 per cent returns from its last closing price.

"The fundamentals of this stock are strong. Valuations are good. Crude oil is moving in a wide range. This is good for the company," said Singhvi.

Meanwhile, shares of ONGC were trading 3.2 per cent higher at Rs 316.8 each on BSE today, July 15 at 1.15 PM IST.

Why Singhvi is bullish on ONGC

Market wizard Anil Singhvi says, crude oil is stuck in the wide range of $75 to $90. This is the most suitable range for ONGC. At the same time, the company has announced capex. This will be beneficial. The government is also going to have a big focus on the oil and gas sector. Valuations are very cheap. Even if the market corrects, there is a chance. "You may do SIP in shares for every 10 per cent fall," added Singhvi.

ONGC share price history

In one month, ONGC shares have provided returns of more than 15 per cent. While the stock has jumped almost one per cent in a week. In a year, the company's shares have given around 87 returns to its investors while increasing 150 per cent in two years.

ONGC's current market capitalisation is Rs 3,98,480 crore. 

The views/suggestions/advice expressed here in this article are solely by the brokerage firm. Zee Business suggests its readers consult their investment advisers before making any financial decision.