Government's focus on rural economy in Budget 2024 boosts FMCG stocks up to 6%.

From Mint: 2024-07-23 07:30:23

FMCG stocks have surged after Budget 2024 emphasized boosting rural consumption, with the Nifty FMCG index hitting a record high. Finance Minister allocated ₹2.66 lakh crore for rural development, introduced high-yield crop varieties, and plans to launch Phase 4 of PMGSY. The budget aims to enhance rural economy and generate employment opportunities.

The government’s focus on rural development is expected to benefit the 2-wheeler market and domestic manufacturers like Bajaj Auto, TVS Motor, and Hero MotoCorp. Initiatives include increasing MSP, providing financial aid for farmers and housing construction. The budget prioritizes agriculture, manufacturing, MSME support, and urban infrastructure development for a “Viksit Bharat.”

Vikas Khemani, founder of Carnelian Asset Management, views the budget as balanced, with a focus on key sectors like agriculture, manufacturing, and MSME support. While the increase in LTCG and STCG taxes may not significantly impact market sentiment, the budget aims to channel resources effectively. Khemani remains optimistic about investing in India and believes in the vision of Viksit Bharat 2047.



Read more at Mint: Budget 2024: FMCG stocks surge up to 6% on govt’s plans to support rural economy; Nifty FMCG touches fresh high