Budget Boosts Expectations for Agri-Stocks as Investors Flock in

Mumbai, February 2, 2025 :  The Indian stock market is expected to witness a spike in agri-stocks after the unveiling of the Union Budget today, with investors looking forward to a positive impact on agricultural companies.

According to market analysts, the budget's focus on boosting farm incomes and promoting farming as a viable career option may attract investors to stocks related to the agriculture sector. The government has proposed an increase in Minimum Support Prices (MSPs) for crops such as wheat, rice, and cotton, which is expected to improve farmers' returns.

In line with market expectations, benchmark indices are starting off on a strong note today. The Sensex index was up over 100 points in the early morning hours, while the Nifty 50 index was trading above 17,000 levels.

Top-performing agri-stock shares include those of companies like Monsanto India, IFCI Bank, and United Phosphorus. Analysts say investing in these stocks could provide investors a hedge against market volatility.

Industry experts pointed out that investment flows into the agriculture sector are expected to improve significantly in the coming months due to government initiatives such as the National Farmers' Registration Programme.

According to a statement from the stock brokerage firm, Motilal Oswal, "The budget has been widely appreciated by the trading community and investors. With this backdrop, we expect the stock market to be in an uptrend, with a boost in agri-stocks."