Select Best Stocks After Budget 2021: Budget 2021 has seen a very positive effect on the stock market. On Budget Day and the next day, ie, 2 days, the Sensex has gained about 4000 points. At the same time, the Nifty has also strengthened by about 1000 points. In 2 days, the market cap of BSE listed companies has increased by more than 6.5 lakh crores. Experts are also considering budget 2021 as growth oriented. They say that the budget will give a boost to the country’s economy and it will be better for many sectors in the long term. There have been big announcements in the budget for healthcare, infrastructure, construction, insurance, banking, auto and finance sectors. In such a situation, a report has been prepared on the basis of the report of expert and brokerage house, in which information is known about which sectors of the sector can rise further.
banking sector: There has been a focus on the banking and finance sector in the budget. Banking sector is showing enthusiasm with announcements like Bad Bank, Stress Loan Management, PSU Bank Recapitalization, Bank Privatization and raising the Insurance Limit of Depositors. There has been a strong rise in the budget and the next day. Experts are also positive about banking shares after the budget.
Healthcare: The Union budget has increased the health budget by 137 percent. A provision of Rs 2.24 lakh crore has been made for this. Last year, a health budget of 94,452 crore was presented. Soon the PM Self-Reliant Healthy India Scheme will be launched. Under this scheme, the government will spend 64180 crore rupees in the next 6 years. Has announced to spend 35000 crores on corona vaccine. The 6 pillars proposed in the 2020-21 budget include health and welfare.
Jewelery: The government has reduced the custom duty on imports of precious metals like gold and silver. It has been recommended to reduce it from 12.5 percent to 10 percent. This will make gold and silver cheaper for buyers in the domestic market. This will increase their participation in trading. Organized sectors will be winners in this.
Insurance Sector: FDI limit has been raised to 74 percent in the insurance sector. This will increase the flow of capital in the sector and will benefit the insurance companies.
Infrastructure: In the budget, the government’s particular focus has been on the infra sector. 1.18 lakh crore has been announced for road-highway construction. This will speed up the order in the sector. A provision of 20 thousand crores is being made for the Development Financial Institution (DFI). A bill will be introduced to establish DFI. This will come in handy in infrastructure financing.
Top pics of brokerage house MK Global
Bank and Financial Sector: IndusInd Bank, HDFC Bank, ICICI Bank, Kotak Bank, AU Small Finance Bank, Equitas SFB. Apart from this, small banks like IOB, UCO Bank, Central Bank, BOI and PJS will benefit from recapitalization.
Auto Sector: Tata Motors, Ashok Leyland, Eicher Motors and Bharat Forge
Construction Sector: Ultratech Cement, Ambuja Cement, Ramco Cement, JK Cement
Jewelery: Titan company
Top Picks by Brokerage House Motilal Oswal
banking sector: ICICI Bank, SBI, Axis Bank
Auto Sector: Ashok Leyland, M&M
Construction: L&T, JK Cement, Ultratech Cement, Hindalco
Jewelery: Titan company
Finance: Shriram Transport Finance, AU Finance
Health: Sun Pharma
Consumption: HUL, Varun Beverages, Cropton Consumer
JM Financial
Banking, Finance: ICICI Bank, HDFC Bank, SBI
(Note: We have given advice here based on the report of the brokerage house. Seeing the risk of the market, take the opinion of the experts before investing.)
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