Budget 2024: MOSL prefers PSU banks, industrials, real estate; SBI, ICICI Bank among top stock ideas

The Interim Union Budget was presented by Finance Minister Nirmala Sitharaman on February 1. The full budget will be announced in July after the formation of the new government in May. Reviewing the budget, brokerage house Motilal Oswal noted that the government did not announce any new schemes or incentives and followed the fiscal deficit consolidation path by maintaining its investment-led spending growth strategy. In stark contrast to the market expectations of 5.3-5.4% of GDP (and MOSL forecast of 5.2 percent of GDP), the Government of India (GoI) has budgeted a fiscal deficit of 5.1 percent of GDP for FY25, implying a consolidation of 70 basis points (bp) next year. Moreover, the GoI has also lowered its deficit target for FY24 to 5.8 percent of GDP, notwithstanding the fact that the nominal GDP growth estimate for FY24 was also revised down.