JPMorgan-India Equity Strategy A budget for all-109288310

GlobalMarketsStrategy18July2024JPMORGANwww.jpmorganmarkets.comEquityMacroResearchRajivBatraAC(65)6882-8151rajiv.j.batra@jpmorgan.comJ.P.MorganSecuritiesSingaporePrivateLimitedRushitMehta(9122)6157-3711rushit.mehta@jpmchase.comJ.P.MorganIndiaPrivateLimited,J.P.MorganTower,Santacruz(E),Mumbai-400098,SEBIRegistration:INH000001873,(91-22)6157-3000.MixoDas(852)2800-0511mixo.das@jpmorgan.comJ.P.MorganSecurities(AsiaPacific)Limited/J.P.MorganBroking(HongKong)LimitedChiefIndiaEconomistSajjidZChinoy(91-22)6157-3386sajjid.z.chinoy@jpmorgan.comJPMorganChaseBank,N.A.,MumbaiBranchTheUnionBudgetforfiscalyear2024-25willbepresentedbyFinanceMinisterNirmalaSitharamanintheLokSabhaon23July.WebelievethefirstbudgetoftheNDAgovernment’sthirdtermshouldlayoutthevisionforthenextfiveyears,asitdidintheprevioustwoterms,andbeasteppingstonetowarda“ViksitBharat”(DevelopedIndia)by2047,aspresentedintheinterimbudgetinFebruary(RevisitingtheInterimBudget2024-25).Asinpreviousyearsandintheinterimbudget,theupcomingbudgetwillbefocusedoninfrastructureandpublicinvestment,inourview.Thisshouldcontinuetosupportlocalmanufacturing,defense,railways,waterwaysandthepowersector.TheextraRBIdividendallowsauthoritiestoincreasetargetedwelfarespendingandstillsticktothefiscalconsolidationpath(Consolidationwithoutcompression).Ontheotherhand,anychangeincapitalgainst...