12 stocks that stand to gain from Budget 2017

By focusing on growth and stability the Budget has surprised many. Although not a big game-changer, the Budget offers relief to rural segment and the middle class, which have been at the receiving end in recent times. Higher agriculture focus, boost to infrastructure as well as affordable housing, and more money in the hands of people, should help push up economic growth and consumption. So far, the finance minister has managed to show fiscal prudence, and if this trend continues expect interest rates to ease further. The sum of these measures should mean more business and earnings for industry and individuals.

“This Budget has a clear thrust towards improving the delivery mechanism of governance to the people at the bottom of the income pyramid. The approach seems to emphasise targeted spending while shoring up revenues through clever moves to broaden tax base and encourage tax compliance. There is evidence of continued emphasis on fiscal prudence. The arrangement of the Budget into key themes underlines areas of policy impetus. Overall sectors such as cement, auto, housing, FMCG and consumer durables should benefit from the stimulus." 
 

Leo Puri, MD, UTI Mutual Fund

“The Finance Minister delivered exactly what the market needed, stability and consistency. This coupled with the relief that there was nothing negative either are the key positive takeaways. In a nutshell, the Budget proposals have been a continuation of the policies that the government has followed over the years — i.e. spend on infrastructure and housing. On earnings growth, my view is that it will be 10 per cent — 12 per cent in FY18. I am slightly cautious towards the implementation of the goods and services (GST) tax in July 2017, which I believe will throw up some execution issues.”  

Andrew Holland, Chief Executive Officer, Avendus Capital Alternate Strategies

Net sales and net profit are for trailing 12 months ended Dec’ 2016 (# - period ended Sep’2016); Price, mcap, PE, dividend yield as on Feb 2, 2017; *1-year % change in stock price Source: Capitaline; Compiled by BS Research Bureau

(Contributions from Ram Prasad Sahu, Hamsini Karthik, Ujjval Jauhari and Sheetal Agarwal)