Stock market, Budget 2026: BEL, 29 other Budget stocks to watch on February 1
The Economic Survey 2026 mentioned the recently concluded free trade agreement with the European Union as a significant development that expands market access for labour-intensive manufactured exports.
- Jan 30, 2026,
- Updated Jan 30, 2026 10:45 AM IST
All eyes are on the Union Budget 2026, as the Finance Minister Nirmala Sitharaman is set to unveil the roadmap for the next fiscal year on February 1. While the Economic Survey 2025-26, tabled in Parliament, pegged India’s real GDP growth at 6.8–7.2% for FY27.
Several analysts have identified 30 stocks across defence, railways, infrastructure, and other sectors that may benefit from the upcoming budget.
Defence and Railways
Vinay Rajani, Senior Technical and Derivative Analyst at HDFC Securities, said for the upcoming budget, the defence and railways sectors warrant a positive bias. Along with Bharat Electronics (BEL) and Hindustan Aeronautics (HAL), Rajani noted opportunities in the broader defence sector.
Rajani also recommended IRCON and Rail Vikas Nigam (RVNL). “Railway stocks exhibit strong relative strength on charts, signalling potential optimism ahead,” he said.
"The defence sector is emerging as one of the strongest candidates to benefit from the Union Budget 2026," citing an expected 15% rise in defence capital expenditure, said Riyank Arora, AVP (Derivatives & HNI) at Octanom Technologies.
For HAL stock, Arora recommended buying on dips near Rs 4,589, with an upside potential towards Rs 4,900–5,100 in the near to medium term. He said pullbacks towards Rs 441 offer a favourable entry for the BEL counter, with targets seen around Rs 470–490.
Utsav Verma, Head of Research at Choice Institutional Equities, has also set a target price of Rs 550 for BEL. "Among defence stocks, our bets are on BEL, as a cup and handle upside breakout has matured, projecting an initial objective of Rs 470," said Anand James, Chief Market Straegist at Geojit Investments Ltd.
Defence companies such as Cochin Shipyard, Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders & Engineers (GRSE) are also likely to capture benefits from India-EU FTA and Budget 2026, along with MTAR Technologies, said Sachin Gupta, Vice President – Research at Choice Broking.
Infrastructure and Construction
Verma expects the budget to maintain a sustained thrust on infrastructure, irrigation, housing, water supply, sanitation and rural development.
UltraTech Cement: Verma sets a target price of Rs 15,210 on the stock. "We expect UltraTech to be a key beneficiary of Union Budget 2026, supported by continued government focus on infrastructure capex, affordable housing and urban development," he said.
Hindware Home Innovation: With a target price of Rs 430, Verma said the company is likely to benefit from government spending on housing, water supply, sanitation and urban infrastructure.
Auto and Healthcare
Arora said that the automobile sector is expected to gain from policy support for electric vehicle manufacturing and tax rationalisation.
Maruti Suzuki: Technically, Arora said the stock looks attractive near Rs 14,480, with recovery targets placed around Rs 15,300–15,700. For Mahindra & Mahindra (M&M), he advised buying near Rs 3,327 for a potential upside towards Rs 3,550–3,700.
While Verma has a target price of Rs 4,450 on M&M stock. “The expected Budget 2026 PLI can ease localisation norms, accelerating the scale-up of EVs for a global edge,” he said. Meanwhile, Bajaj Auto has target price of Rs 9,975, TVS Motor (Rs 3,920), and Lumax Auto (Rs 1,480).
In the healthcare space, Arora recommended Aurobindo Pharma and Laurus Labs stock with upside targets of Rs 1,220–1,280 and Rs 1,050–1,100, respectively.
Artemis Medicare Services (TP of Rs 325): “Scaling Up 2x bed expansion to propel the next leg of growth, while sustaining industry leading ARPOB and international patient share,” Verma said.
IT Services
TCS: Verma suggested a target price of Rs 3,950. He said, "Any policy allocation or announcement aimed at strengthening India’s data-centre ecosystem should be positive for TCS."
Manufacturing, Metals and Trade
The Economic Survey 2026 mentioned the recently concluded free trade agreement with the European Union as a significant development that expands market access for labour-intensive manufactured exports.
Gupta said "The agreement is expected to unlock opportunities across multiple sectors.”
Steel & metals: Gupta identified Jindal Stainless and JSW Steel as key beneficiaries poised to gain from reduced tariffs that could be amplified after the budget. Rajani also lists Jindal Steel, JSW Steel, and Tata Steel as top picks, driven by a commodity surge in global markets.
To leverage the FTA for expanded business, Gupta recommended KPR Mills and Arvind as its top textile picks, while SRF, Navin Fluorine, PI Industries, and UPL in the chemical space.
Rajani recommended NMDC, Hindustan Copper, Hindustan Zinc, and National Aluminium Company (NALCO), stating that commodities as a sector are the flavour of the year. Hindalco and Hind Zinc are both near record peaks and are also ona strong upside trajectory. NMDC, meanwhile, is coming off a month-long downtrend, and hence the pace of ascendancy could be faster, with an target price of Rs 88.7, James said.
All eyes are on the Union Budget 2026, as the Finance Minister Nirmala Sitharaman is set to unveil the roadmap for the next fiscal year on February 1. While the Economic Survey 2025-26, tabled in Parliament, pegged India’s real GDP growth at 6.8–7.2% for FY27.
Several analysts have identified 30 stocks across defence, railways, infrastructure, and other sectors that may benefit from the upcoming budget.
Defence and Railways
Vinay Rajani, Senior Technical and Derivative Analyst at HDFC Securities, said for the upcoming budget, the defence and railways sectors warrant a positive bias. Along with Bharat Electronics (BEL) and Hindustan Aeronautics (HAL), Rajani noted opportunities in the broader defence sector.
Rajani also recommended IRCON and Rail Vikas Nigam (RVNL). “Railway stocks exhibit strong relative strength on charts, signalling potential optimism ahead,” he said.
"The defence sector is emerging as one of the strongest candidates to benefit from the Union Budget 2026," citing an expected 15% rise in defence capital expenditure, said Riyank Arora, AVP (Derivatives & HNI) at Octanom Technologies.
For HAL stock, Arora recommended buying on dips near Rs 4,589, with an upside potential towards Rs 4,900–5,100 in the near to medium term. He said pullbacks towards Rs 441 offer a favourable entry for the BEL counter, with targets seen around Rs 470–490.
Utsav Verma, Head of Research at Choice Institutional Equities, has also set a target price of Rs 550 for BEL. "Among defence stocks, our bets are on BEL, as a cup and handle upside breakout has matured, projecting an initial objective of Rs 470," said Anand James, Chief Market Straegist at Geojit Investments Ltd.
Defence companies such as Cochin Shipyard, Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders & Engineers (GRSE) are also likely to capture benefits from India-EU FTA and Budget 2026, along with MTAR Technologies, said Sachin Gupta, Vice President – Research at Choice Broking.
Infrastructure and Construction
Verma expects the budget to maintain a sustained thrust on infrastructure, irrigation, housing, water supply, sanitation and rural development.
UltraTech Cement: Verma sets a target price of Rs 15,210 on the stock. "We expect UltraTech to be a key beneficiary of Union Budget 2026, supported by continued government focus on infrastructure capex, affordable housing and urban development," he said.
Hindware Home Innovation: With a target price of Rs 430, Verma said the company is likely to benefit from government spending on housing, water supply, sanitation and urban infrastructure.
Auto and Healthcare
Arora said that the automobile sector is expected to gain from policy support for electric vehicle manufacturing and tax rationalisation.
Maruti Suzuki: Technically, Arora said the stock looks attractive near Rs 14,480, with recovery targets placed around Rs 15,300–15,700. For Mahindra & Mahindra (M&M), he advised buying near Rs 3,327 for a potential upside towards Rs 3,550–3,700.
While Verma has a target price of Rs 4,450 on M&M stock. “The expected Budget 2026 PLI can ease localisation norms, accelerating the scale-up of EVs for a global edge,” he said. Meanwhile, Bajaj Auto has target price of Rs 9,975, TVS Motor (Rs 3,920), and Lumax Auto (Rs 1,480).
In the healthcare space, Arora recommended Aurobindo Pharma and Laurus Labs stock with upside targets of Rs 1,220–1,280 and Rs 1,050–1,100, respectively.
Artemis Medicare Services (TP of Rs 325): “Scaling Up 2x bed expansion to propel the next leg of growth, while sustaining industry leading ARPOB and international patient share,” Verma said.
IT Services
TCS: Verma suggested a target price of Rs 3,950. He said, "Any policy allocation or announcement aimed at strengthening India’s data-centre ecosystem should be positive for TCS."
Manufacturing, Metals and Trade
The Economic Survey 2026 mentioned the recently concluded free trade agreement with the European Union as a significant development that expands market access for labour-intensive manufactured exports.
Gupta said "The agreement is expected to unlock opportunities across multiple sectors.”
Steel & metals: Gupta identified Jindal Stainless and JSW Steel as key beneficiaries poised to gain from reduced tariffs that could be amplified after the budget. Rajani also lists Jindal Steel, JSW Steel, and Tata Steel as top picks, driven by a commodity surge in global markets.
To leverage the FTA for expanded business, Gupta recommended KPR Mills and Arvind as its top textile picks, while SRF, Navin Fluorine, PI Industries, and UPL in the chemical space.
Rajani recommended NMDC, Hindustan Copper, Hindustan Zinc, and National Aluminium Company (NALCO), stating that commodities as a sector are the flavour of the year. Hindalco and Hind Zinc are both near record peaks and are also ona strong upside trajectory. NMDC, meanwhile, is coming off a month-long downtrend, and hence the pace of ascendancy could be faster, with an target price of Rs 88.7, James said.