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Christy Mathai says: The government is expected to set the fiscal deficit target at 5.2%-5.4% of GDP in FY 2024-25. The focus will be on moderating capex aggression and addressing tax inconsistencies. Bond investors are not likely to see any favorable moves in this budget. The government will continue its initiatives for import substitution and export opportunities. Sectors linked to government capex and rural recovery will be watched closely. Prudent asset allocation and systematic investing are recommended for equity markets.

Sun Pharmaceuticals and Maruti Suzuki India are among the companies declaring their Q3FY24 earnings. Maruti Suzuki India is expected to report healthy revenue growth, while Sun Pharmaceuticals may see moderate revenue growth.

For Zee, the MWPL stood at 95.5% on Tuesday with OI reported by Trendlyne at 118.9 million. It was up 13.8% from the previous session. The stock has been moving in either direction based on the news flows. On Tuesday, the Zee shares regained momentum on news reports that Subhash Chandra could hike his stake in the company.

Kunal Vora of BNP Paribas has concerns about valuations and finds it difficul to find stocks with reasonable growth at this time. He highlights the gap between bond yields and earning yield as an important metric for predicting future returns, noting that historical data shows weak returns when this gap is significant. Vora expects higher returns from Nifty compared to mid and smallcaps this year, and sees value in the financial sector, particularly private banks.

Maruti Suzuki is expected to report healthy third quarter earnings today with a 8% increase in total units sold, driven by higher SUV segment sales and exports. Analysts anticipate a 15-16% increase in total revenue due to higher unit sales and better product mix, offset by higher discounts. While revenues may decline 10% sequentially, EBITDA is expected to outpace the topline growth, supported by a richer product mix and price hikes. Investors will closely watch the commentary on demand outlook and margins.

Varun Lohchab discusses the positive outlook for the auto ancillary space and Indian battery companies. The auto component sector is expected to see increased investments and greater content due to premiumization and the Make in India initiative. Battery companies have attractive valuations and are transitioning towards renewables. Overall, there are opportunities across multiple sectors in the current macroeconomy.

Dipan Mehta says capital goods and infrastructure sectors are expected to do well in the coming years, especially if the BJP retains the majority in the General elections. There has been an increase in SME IPOs compared to mainboard ones, but caution is advised due to the frothiness and lack of floating stock in SMEs. Railway stocks have performed well due to increased budgetary allocation. Small and midcap stocks have good quality businesses, but valuations are very rich.

Positive setup was seen in stocks like Syngene, HPCL, BHEL, LIC Housing Finance, Bosch Ltd, DLF, Tata Motors, BPCL, PNB, MGL, Manappuram Finance, Bank of Baroda, Birla Soft, HAL and Zydus Life.