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Equity market participants are eyeing sectoral budgetary outlays in the coming interim budget for 2024-25 (FY25) on February 1, especially across infrastructure and rural themes, which are expected to see most spending priority from the government.
Here’s a look at stocks and sectors that will likely benefit from budget announcements:
Infrastructure
L&T, PNC Infratech, Dalmia Bharat, Astral, Tata Power and CESC are top infrastructure budget picks from Sharekhan
Havells, RR Kabel, Ultracab: Cables and switch companies are expected to benefit from a fillip to housing construction activities and urban infrastructure, as per Nirmal Bang.
Rural and consumption theme
Hero MotoCorp, M&M, Escorts Kubota, HUL, ITC, Dabur: Two-wheeler and consumer staple companies will be the likely beneficiaries, as per Sharekhan, given the budget is expected to increase rural support via welfare schemes to boost consumption.
Samhi Hotels, Chalet Hotels, Wonderla Holidays, DLF, SBI, Bank of India, PNB and IndusInd Bank: Other picks from Sharekhan under the discretionary consumption and realty segment as possible rationalisation of tax structure and housing support will aid disposable incomes.
READ: Govt should focus on capital expenditure in interim Budget: Former NITI VC
READ: Govt should focus on capital expenditure in interim Budget: Former NITI VC
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Railways
IRFC, RVNL, IRCTC, Titagarh: Railway sector allocation will continue to be robust in the budget, as per experts, after a 40 per cent yearly spending increase so far in FY24, as per Nirmal Bang.
Cement and construction
Ultratech Cement, Ambuja Cement, ACC, Ahluwalia Contracts, Dilip Buildocn, IRB Infra: Continuous spending on road, highways construction and housing are expected to benefit related stocks in the space.
Defence
BEL, BHEL, HAL, Mishra Dhatu Nigam, Astra Micra, BDL, Paras Defence: Nuvama Inst Equities expect defence related capex to increase 5-8 per cent YoY with higher allocation towards R&D, drones, anti-drone systems.
