Infrastructure
The government’s emphasis on capital spending, with a target of Rs 11 trillion for the next fiscal year, is expected to significantly boost the infrastructure sector. Companies with strong order books are likely to benefit the most. Recommended Stocks: Larsen & Toubro, KEC International and KNR Construction
Taxes
Personal income tax relief is expected to stimulate consumer spending, potentially driving increased demand in the economy. A reduction in taxes is likely to improve disposable income and consumer confidence. Recommended Stocks: Hindustan Unilever (HUL), Dabur, Tata Consumers, Varun Beverages (VBL), ITC
Cement
rising infrastructure demand is set to benefit cement companies as consumption increases. The construction boom will directly impact the cement sector. Recommended Stocks: UltraTech Cement, Dalmia Bharat, Ambuja Cement, and JK Cement.
Utilities & Power
the focus on infrastructure is also expected to extend to the power sector, with a particular emphasis on clean energy solutions. This will create growth opportunities for companies in the renewable energy space. Recommended Stocks: Waaree Energy, Power Grid Corporation of India, Inox Wind.
Banking
expecting more support for MSMEs through low-interest loans and extended tenure options, the banking sector could see growth as these businesses expand. This, in turn, is expected to boost economic expansion. Recommended Stocks: HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank.
Auto Ancillaries & Batteries
The growing electric vehicle (EV) market, driven by government incentives, is expected to fuel growth in the auto ancillary and battery sectors. Recommended Stocks: Amara Raja Batteries, Exicom, and Exide.
Metals & Mining
Increased infrastructure development will drive demand for metals and mining products, benefiting companies in these industries. Recommended Stocks: Hindalco Industries, JSW Steel, and Vedanta.
Healthcare
The healthcare sector is poised for growth with rising investments, and companies in this space are expected to benefit. Recommended Stocks: Windlass Biotech, Lupin, Dr. Reddy’s Laboratories, and Cipla.
Defence
The government is likely to increase budget allocation for the defence sector, with continued focus on “Make in India” and enhancing domestic defence capabilities. Recommended Stocks: Bharat Electronics Limited (BEL), Garden Reach Shipbuilders & Engineers, Hindustan Aeronautics Limited (HAL), Mazagon Dock.
Automobiles
With expected increases in disposable income and potential rate cuts by the RBI, demand for automobiles is anticipated to rise, supporting growth in the automotive sector. Recommended Stocks: Tata Motors, Hero MotoCorp, and Maruti Suzuki.
