Finance Minister Nirmala Sitharaman presented the general budget on February 1, exactly what he had promised. On this budget like never before, Dalal Street showed the same enthusiasm and the Sensex, which had lost more than 3000 points in 6 consecutive days, recorded a 5% growth on the budget day, breaking the 22-year record. In a single day, more than 2300 points bounced. The main highlights of this path-breaking budget were the lack of direct tax increases, banking-related announcements with a focus on healthcare and insurance. Because of this, Nifty Bank crossed the 34,000 marks for the first time in history.
Market experts praised this budget and described it as a milestone for economic growth. B Gopkumar of Axis Securities told Moneycontrol that the government’s focus in this budget was on increasing the spends to revive the economy without changing the taxation structure. He said that the government has decided to increase funding on infrastructure, healthcare and important social programs. Apart from this, the privatization of PSU banks and the announcement of the formation of asset reconstruction company will give a boost to the financial sector.
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Hold stocks of these sectors for tremendous profits
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, told Moneycontrol that this budget has set the stage for privatization in India. However, to achieve its goals, it will be a challenge to properly implement the announcements made in the budget. Geojit Financial Services advised investors to hold stocks in the finance sector, especially private banks, IT, pharma, auto, cement and FMCG sectors, these stocks will gain further momentum. Meanwhile, brokerage firms ICICI Direct and IIFL Securities have selected 30 stocks that will benefit the most from the announcements in the budget.
These 30 stocks will gain tremendous momentum from the budget
Top pics of ICICI Direct
Infra & Cement Stocks (Larsen & Toubro, UltraTech Cement): L&T and UltraTech Cement stocks will benefit the most from the announcement of spending of 5.54 lakh crore rupees on infrastructure and formation of DFI with states giving 2 lakh crore rupees for it.
Healthcare Stocks (Narayana Hrudayalaya, Apollo Hospital, Shalby): Healthcare will get a boost by setting up a critical care hospital block in 602 districts with an announcement to invest Rs 64,180 crore in the next 6 years in the PM Self-Reliant India Scheme. Under this, private players will also get an entry under the PPP model, which will benefit Narayan Hridayalaya, Apollo Hospital and Shalby.
Textile Stocks (KPR Mill, Gokaldas Exports, Arvind): KPR Mill, Gokaldas Exports and Arvind Ltd are expected to benefit the most from the announcement of a mega-investment textile park with PLI scheme.
Auto Stocks (Ashok Leyland, Tata Motors, JK Tire, Apollo Tires): Provision of Rs 18000 to buy 20,000 buses for urban transportation is expected to further boost the stocks of Ashok Leyland, Tata Motors, JK Tire and Apollo Tires. is.
Oil and Natural Gas (Indraprastha Gas, Mahanagar Gas, Gujarat Gas, Adani Total Gas & GAIL): CGD network will be launched in 100 districts of the country in the next 3 years. These companies are expected to benefit from this.
Road Construction Sector (PNC Infratech, KNR Construction): CAPEX for Roads and Highways has increased by 17% year-on-year and an allocation of Rs 1,08,230 crore for the development of road infrastructure. This is expected to benefit PNC Infratech and KNR Construction tremendously.
Plastic Industries (Supreme Industries, Astral Poly): 2.86 crore tap connections will be installed in the next 5 years under the Water Life Mission in urban areas. A provision of Rs 2.87 lakh crore has been made for this. This will benefit companies making plastic and PVC pipes and Astral Poly’s stock is expected to gain momentum with Supreme Industries.
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Top pics of IIFL Securities
ICICI Bank: ICICI Bank is expected to benefit the most from the announcements made in the bank stocks in the budget. The bank’s margins are expected to increase further due to good asset quality, data analytics and growth drive technology.
ITC: ITC stocks are expected to pick up further due to non-increase in taxes on tobacco products and cigarettes. The company is now focusing on its volume growth.
Dabur India: Among companies in the FMCG sector, Dabur India has recorded the best revenue growth. Also, the company’s volume growth has also strengthened and its market share has increased. This will benefit those investing in the company.
SBI Life Insurance: SBI Life is India’s largest private life insurance company based on Retail Annual Premium Equivalent (APE). Due to the favourable mass customer base, diversified distribution and the rational cost structure, its stocks are likely to gain momentum.
Expect a sharp jump in these stocks
IIFL Securities has suggested investors place bets on stocks of ICICI Lombard General Insurance, Deepak Nitrite, JK Lakshmi Cement, Sudarshan Chemical and HG Infra Engg. Brokerage firm IIFL Securities has said that the announcements made in the budget will give a tremendous jump in these stocks in the coming times. Therefore these stocks must be in your portfolio.
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