There may be sharp movement in stocks related to infrastructure, railways and capex on Budget Day.
highlights
- There may be sharp movement in stocks related to infrastructure, railways and capex on Budget Day.
- PSU, real estate and power shares will be in focus due to government announcement on disinvestment and green energy.
- Auto, EV, banking and FMCG sectors may decide the market direction during the budget speech.
Sharp movement may be seen in shares like L&T, Siemens, BHEL, IRFC, RVNL, HAL, BEL on the budget day. Also, signals related to tax or rural expenditure can become triggers for FMCG and auto stocks. During the budget speech, investors will keep an eye on policy, subsidy, tax structure, capex target and fiscal deficit. Action is also possible on banking and financial stocks like HDFC Bank, SBI, ICICI Bank, especially if there are positive signals related to credit growth or NPAs. Here we are going to tell you which stocks of which sectors can see action on the budget day.
Action on disinvestment and PSU shares
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If there is a roadmap for disinvestment and strategy in the budget, then shares like BEML, BPCL, CONCOR, Hind Zinc, IDBI Bank and Shipping Corporation will be in focus. Also, action can be seen in government banks SBI, BOB, PNB and Canara Bank due to signals related to capital infusion and reforms.
Fertilizer and Agri Share
Stocks like Chambal Fertilizers, Coromandel, RCF, NFL, GSFC, Deepak Fertilizers may see action on expectations of increase in fertilizer subsidy and rural support. Crop chemical shares SRF, UPL and PI Industries will also be in focus.
Auto and EV Shares
Extension of FAME subsidy or new EV incentives may see movement in Tata Motors, M&M, Hero MotoCorp, Bajaj Auto and TVS Motor as well as EV auto ancillary stocks.
Housing and Real Estate
Aavas Financiers, Home First, Aadhar Housing and builders like NCC, Ahluwalia, Signature Global may benefit from the emphasis on PMAY and affordable housing. Big realty names DLF, Lodha Developers, Godrej Properties, Oberoi Realty will also be on the radar on Budget Day.
Banking, NBFC and Insurance
With focus on SME and retail credit, NBFCs like MAS Financial, Shriram Finance, Chola and private banks like HDFC Bank, ICICI Bank, Axis Bank will be in focus.
Star Health, ICICI Lombard, LIC and HDFC Life may remain in focus due to the announcement on composite license in the insurance sector.
Infra, Railways and Metro
With the expectation of increase in capex, sharp movement is possible in stocks like L&T, Siemens, RVNL, KEC, Kalpataru, Titagarh Wagons and BEML.
Power, Green Energy and Hydrogen
With emphasis on power transmission and green energy, stocks related to Power Grid, NTPC, Tata Power, Adani Green, Suzlon, Siemens and green hydrogen could be the hot stocks of Budget day.
Consumption, FMCG and Retail
Shares like HUL, Dabur, Britannia, ITC, Trent, V-Mart may see positive reaction on Budget Day due to rural demand and tax relief.
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