Budget 2024 Stock: Here's why IREDA share price is rising
budget 2024 stock: here's why ireda share price is rising
Budget Stock 2024: Shares of Indian Renewable Energy Development Agency (IREDA) Limited jumped over 4.5 per cent to hit Rs 205.10 apiece on NSE.
On Wednesday, the NBFC stock jumped over 8 per cent before settling with 5.21 per cent gains on NSE. The counter, in Wednesday's session, saw heavy volumes during the session as 63.24 lakh shares changed hands on BSE, and 10.05 crore shares changed hands on NSE.
As we move towards the Budget session, investors are actively looking to invest in stocks that are likely to benefit from the Budget 2024.
The Budget Session of Parliament is expected to begin on July 22 and last until August 9, 2024. The first session of the 18th Lok Sabha has commenced on June 25, 2024 and will extend until July 4.
Meanwhile, IREDA's shares have jumped nearly 15 per cent in over a week. Read on as we make sense of this upsurge.
IREDA: Why shares are rising?
According to media reports, the upcoming Union Budget is likely to introduce provisions which will help obtain cheaper funds for IREDA.
The Modi government is considering including two state-run companies - IREDA and HUDCO - under Section 54EC of the Income Tax Act, as per reports. After their inclusion, investors buying bonds of these firms will be exempted from capital gains tax.
Section 54EC of the Income Tax Act states that any long-term capital gains (LTCG) arising from the sale of immovable assets such as land and house are exempt if the money is invested in the PSUs notified under the Section. Bonds of PSUs such as Rural Electrification Corp. Ltd (REC) and Power Finance Corp. (PFC) are currently eligible for such exemptions.
IREDA Share Price Target 2024
Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One, said that IREDA is currently experiencing an upward trend and is comfortably positioned above all its major EMAs on the daily chart. The stock has been steadily gaining momentum since the beginning of the new financial year and is poised to reach its all-time high.
"From a technical perspective, the stock is well-supported in the Rs 170-160 range, and maintaining this level could work in favor of buyers during any dips. However, breaking through the Rs 195-200 range poses a challenge for the bulls. A decisive breach of this level could potentially trigger the next phase of the rally from a short to medium-term outlook," he said.
Earlier, brokerage firm Choice Equity Broking in a report assigned BUY rating on IREDA shares for a target of Rs 203.
Market expert and ET Now Swadesh panellist Gaurang Shah had advised IREDA investors to HOLD the stock as he mentioned that there will be a greater push on clean and green energy in the new government. "The future of the stock is very bright," Shah had said.
Another expert said that IREDA shares are showing sideways trend post-election result. There will be a breakout above Rs 200 and then it can show the levels of Rs 225. On the downside, if the stock breached Rs 160 mark, then levels of Rs 130 cannot be ruled out.