These stocks should benefit from Sitharaman’s announcements

Construction spending, including on roads and ports, as well as incentives for electric mobility and renewable energy will likely be at the center of Finance Minister Nirmala Sitharaman’s budget speech on Tuesday, as policymakers look for ways to help the economy emerge from the malaise left by the pandemic.

With India’s benchmark equities tumbling amid the recent global selloff spurred by concerns over impending Federal Reserve rate hikes and foreign funds fleeing the market, investors are hoping the budget announcements will provide some relief. reprieve.

That said, the benchmark S&P BSE Sensex has climbed in the month following Budget Day in just three of the past eight years since Prime Minister Narendra Modi came to power in 2014. It has fallen or s is negotiated in the other five occasions.

“The overall budget will likely be geared toward job creation and investment-led growth, implying an encouraging push toward infrastructure development,” wrote Neeraj Chadawar, head of quantitative equity research at Axis. Securities Ltd., in a note. include public infrastructure investments for roads, water, metro, railways, defence, digital infrastructure and green technologies. »

Here are the top sector and stock picks by some top brokers:


A gauge of India’s top 30 companies in roads, air, ports, shipping, railways and other utilities, soared 36% in 2021, its best gain since 2009, as the government continues to increase public spending to create jobs and stimulate growth. ICICI Direct expects the allocation to remain “floating” with higher spending on roads, defence, water, housing and railways.

Top picks include Polycab India, HG Infra Engineering, KNR Constructions, PNC Infratech, Larsen & Toubro, Thermax, KEI Industries, ABB India, Siemens India, Ramco Cements, UltraTech Cement, ACC, Ambuja, Bharat Dynamics, Bharat Electronics, NTPC, Container Company of India

Renewable energy/EV

In line with the government’s emphasis on reducing emissions and reliance on fossil fuels, analysts expect a range of support for infrastructure development for electric vehicles and green energy generation.

“A push is expected on sustainable technologies with certain benefits aimed at accelerating the adoption of EVs in India. Additionally, the EV charging infrastructure segment is expected to receive a boost to further support vehicle adoption electricity,” according to Chadawar of Axis Securities.

Top picks include Maruti Suzuki India, Tata Power, Adani Green, Hero Motocorp, Bajaj Auto, TVS Motors, Mahindra & Mahindra, Tata Motors, Minda Corporation, Gabriel India, Dixon Technologies


Sell-side analysts expect continued support for agriculture and rural areas through more aid for food processing, production-linked incentives as well as higher agricultural credits and subsidies for fertilizers and crop protection. Increased agriculture industry spending will benefit consumer goods companies struggling with higher input costs.

“Given the rise in Covid cases, we believe policymakers will need to strike a balance between boosting rural demand and investing in infrastructure while continuing on the path of fiscal consolidation to maintain the Macro Stability”, Goldman Sachs (India) Securities Pvt. the analysts led by Santanu Sengupta wrote in a note.

Top picks include PI Industries, Dhanuka Agritech, Rallis, Godrej Agrovet, Hindustan Unilever, Britannia, Dabur and Nestle India.


In line with its goal of bolstering health care infrastructure, the government is expected to increase business spending to boost production, along with tax breaks for those taking out health insurance, better access to medical care, and a boost generous for drug research.

Top picks include Apollo Hospitals, Narayana Healthcare, Shalby Ltd., Gland Pharma, Krishna Institute of Medical Sciences, Healthcare Global Enterprise, Max Health, HDFC Life, SBI Life, and most drug manufacturers.

NOTE: Brokers surveyed for industry top picks include: Axis Securities, Religare Broking Ltd., ICICI Securities Ltd. and BofA Securities.

This story was published from a news feed with no text edits. Only the title has been changed.

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