Budget 2026: The Union Budget has long been a pivotal event for Indian equity markets, frequently triggering sharp short-term price movements and influencing sectoral trends based on the government’s policy priorities. As the Union Budget for FY26 approaches, expectations are building around higher allocations toward defence, continued push on capital expenditure and measures aimed at preserving macroeconomic stability. This backdrop has prompted traders and investors to prepare for elevated volatility as positioning intensifies ahead of key announcements.
The Union Budget 2025 will be presented in Parliament by Finance Minister Nirmala Sitharaman today, February 1, at 11 am. Although the presentation falls on a Sunday, Indian equity markets will remain open for trading, making it a rare Budget Day session. Historical patterns suggest that such sessions often witness sharp intraday swings, as investors react swiftly to policy signals that can alter market sentiment and sectoral outlooks.
Sharma of JM Financial Services cautioned that several domestic and global risk factors could heighten volatility around the Budget presentation and affect investor sentiment in the near term. He advised investors to stay cautious and avoid aggressive positioning until clearer policy direction emerges after the announcements.
He said, “Budget day volatility remains high, with possible potential sell-offs if stimulus falls short or fiscal targets slip, potentially raising bond yields and tightening liquidity. Geopolitical tensions, currency fluctuations, and global trade disruptions pose external threats.”
Against this backdrop, several leading brokerage houses have curated extensive lists of stock ideas they believe are well-positioned to navigate the expected volatility and benefit from potential Budget-led sectoral tailwinds. These lists collectively span more than 100 stocks across defense, infrastructure, banking, energy, manufacturing and consumption themes, reflecting areas where policy support is anticipated.
Budget Stock Picks: How many do you own?
Motilal Oswal: L&T, ABB, Siemens, Hitachi, Siemens Energy, KEC, Bharat Electronics, Bharat Dynamics, HAL, Ultratech, JK Cement, Polycab, KEI, Crompton, Titan, PN Gadgil, Niva Bupa, AMCs, RTAs, most HFCs, MFIs, Infra players, IGL, Mahanagr Gas, Gujarat Gas, Petronet LNG, GAIL, Waaree, Premier, NTPC, Tata Power, Acme, NTPC Green, Brigade, Prestige, Sobha, Lodha, and Godrej Properties.
Axis Securities – Positive Budget Play (Coverage): Ultratech Cement, Maruti Suzuki, Bharati Airtel, NALCO, Prestige Estate, Chalet Hotels, Max Healthcare, and Credit Access Grameen
Positive Budget Play (Non-Coverage): GMDC, BEL & MTAR, Amar Raja Energy, CESE, M&M Finance, and Jain Resource Recycling.
Anand Rathi: UPL, Sharda CropChem, Max Healthcare, KIMS, Indraprastha Medical, Ashok Leyland, ZF Commercial Vehicles, JK Cement, Birla Corp, PG Electroplast, Polycab, Waaree Energies, L&T Finance, Poonawalla, Indian Hotels, InterGlobe Aviation, Fine Organic Industries, Astral, Supreme Industries, Cera, Kajaria, Greenply, Greenpanel, Mayur Uniquoters, Solar Industries, Hindustan Aeronautics, TD Power, Jubilant Ingrevia, V-Mart, GCPL, Mrs Bector Food, PNC Infratech, and Aptus Housing as its top picks across all sectors.
Prabhudas Lilladher: Adani Port & SEZ, Britannia Industries, HDFC Life Insurance Company, Hindustan Aeronautics, ICICI Bank, Larsen & Toubro, Mahindra & Mahindra, Shriram Finance, State Bank of India, Tata Steel, Titan Company, Aster DM Healthcare, Fine Organic Industries, KEI Industries, LG Electronics India, and Max Healthcare Institute.
Choice Broking: Ultratech Cement, Radico Khaitan, Allied Blenders, M&M, TVS Motor, Lumax Auto, Shanti Gold, Bharat Electronics, Bharat Dynamics, Data Patterns, Artemis Medicare, Yatharth Hospital, Sobha, Smartworks Coworking, Sun Pharma, Divis Labs, TCS, Meesho.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
