The impact of Union Budget on equities has reduced over the years, but it remains significant for Dalal Street. The Finance Minister, Nirmala Sitharaman, will present the Interim Budget for 2024-25 today. The market performance on Budget days has shown negative returns in the past, with the steepest fall in 2020. The recent state assembly elections and improved macroeconomic landscape have boosted investor confidence. Experts expect growth and investment-led announcements with a focus on infrastructure and support for the bottom of the pyramid . The bulls on Dalal Street remain optimistic but await the finance minister s decisions.
The pharmaceuticals sector is expected to post a revenue growth of around 13.5 per cent and a net profit growth of 30.3 per cent for the third quarter of 2023-24 (FY24), riding on the approval for niche drugs in the US market, fall in raw material prices and correction in shipping rates.
In the healthcare segment, hospitals are expected to post revenue growth of 13 per cent during the coverage, while net profit growth would be around 37 per cent, ICICI Securities said in a note.
However, the performance may not be comparable on a sequential basis due to the offset of the festive season in Q3FY24, the analysts noted.
HUL target price: There appears to be a risk that FY25E EPS growth could also be muted, said Nirmal Bang. It cut the HUL target to Rs 2,670 from Rs 2,700 earlier, as it rolled forward its estimates to value HUL at 50x December 25 EPS.
IndusInd Bank target price: Kotak said the bank continues to invest in the franchise, leading to elevated cost ratios. Meaningful outperformance, said Kotak, appears to be unlikely, as valuations are capped by relative valuations as well.