Upstox Originals
Budget buzz: Reaction of infrastructure stocks during past budgets
.png)
3 min read | Updated on July 22, 2024, 19:25 IST
SUMMARY
Can the upcoming budget power up the infrastructure stocks? This analysis examines how infrastructure stocks reacted following major infrastructure announcements in the past three budgets.
Analyzing performance of infrastructure stocks post budget
To understand how different segments might react, we analyze the performance of leading companies (top 3 by market cap in each sector) in the Nifty Infra Index. We analyze how infrastructure stocks reacted one week after the past three budgets.
We also compare the performance of these stocks with the Nifty. Our analysis indicates that infrastructure stocks tend to have a slightly higher sensitivity to market movements in the week post the budget. In each of the three instances before, infrastructure companies have moved in line with the broader markets. That said, their reaction has been sharper compared to the overall market.
While we would have gone further back in our analysis, unfortunately, the years before were impacted by COVID-19. The outcome, therefore, may not be entirely reliable.
We would also like to highlight that while historical performance offers valuable insights, investors shouldn't rely solely on past trends. Upcoming policy changes can significantly impact the infrastructure sector. Careful analysis of these developments is crucial for informed portfolio adjustments.
| Sector | Companies | 1 week % change (2022) | 1 week % change (2023) | 1 week % change (2024) |
|---|---|---|---|---|
| Oil, Gas & Consumable Fuels | ONGC | -2.3% | -0.2% | 10.3% |
| IOC | -0.3% | -0.7% | 28.5% | |
| GAIL | -2.0% | -0.4% | 3.4% | |
| Average | -1.5% | -0.4% | 14.1% | |
| Construction | Larsen and Toubro | -5.8% | -0.8% | -2.0% |
| DLF | -5.1% | 3.1% | 3.7% | |
| Siemen | -2.2% | 5.8% | 3.2% | |
| Average | -4.4% | 2.7% | 1.6% | |
| Power | NTPC | -1.9% | -2.8% | 3.4% |
| Power Grid | -3.0% | -2.1% | 4.3% | |
| Tata Power | -6.4% | 0.8% | 4.7% | |
| Average | -3.8% | -1.4% | 4.1% | |
| Telecommunication | Bharti Airtel | -2.1% | 0.6% | -0.9% |
| Construction Materials | Ultratech Cement | -1.1% | 1.8% | 0.5% |
| Shree Cement | -2.5% | 0.7% | -7.4% | |
| Ambuja Cement | -1.0% | 15.2% | -0.5% | |
| Average | -1.5% | 5.9% | -2.5% | |
| Services | Adani Ports | -2.8% | 21.1% | 2.1% |
| Interglobe Aviation | 12.3% | -2.4% | 1.7% | |
| Container Corp | -6.0% | 1.3% | 3.9% | |
| Average | 1.2% | 6.7% | 2.6% | |
| Automobile and Auto Component | Ashok Leyland | 2.3% | 0.4% | 0.3% |
| Balkrishna Ind | -5.9% | 1.7% | -5.0% | |
| MRF | -3.4% | 0.7% | 0.0% | |
| Average | -2.3% | 0.9% | -1.6% | |
| Healthcare | Apollo Hospital | -2.5% | 2.7% | -1.0% |
| Total Average | -2.1% | 2.3% | 2.7% | |
| Nifty movement | -1.8% | 1.4% | 0.1% |
Source: Nifty Infra, Trading View; 2024 above is for the interim budget
About The Author
Next Story
