Budget 2024: In February, Finance Minister Nirmala Sitharaman will present the budget for the sixth consecutive year. Due to the 2024 Parliamentary Elections, this year's budget announced in February will be an interim one instead of a full-year budget.

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Ahead of the budget announcement, market analysts will keep an eye on infrastructure-related stocks, as according to Harsh Goela, co-founder, Goela School of Finance, since the government maintains its steadfast commitment to rapid infrastructure growth in the upcoming fiscal year, there's the anticipation of a substantial 20-25 per cent increase in capex allocations for the roads ministry.

Along similar lines, Anirudh Garg, Partner and Fund Manager at INVAsset, PMS, believes that there are promising expectations for substantial shifts in capital expenditure (capex) allocation, with a specific focus on the infrastructure sector.

On the other hand, Rajarshi Maitra, Associate Director, InCred Research Services, believes muted growth is expected as compared to last year. 

"We have noticed that spending on infra in the election year generally tapers down and picks up only six months after elections," said Maitra. 

Which infrastructure-related stocks should be on investors' radar ahead of the Budget?

INVAsset, PMS's Garg is bullish on IRCON and SJVN as he believes that with this being an election year and the government's initiatives like Make in India and Aatmanirbhar Bharat being backed by PLI schemes, capex-oriented stocks in sectors such as railways, defence, PSU banks, infrastructure, construction, and real estate may lead the bull run.

Maitra likes PNC Infra as it has a decent order book cover and is trading at reasonable valuations.

Goela School of Finance's Harsh Goela is bullish on the railways, cables, power and electricity, cement, and roads sectors on the back of the government's heightened focus on highways, railways, and urban infrastructure, which unlocks massive opportunities for investors.

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