BEL, GRSE, RVNL among key Budget beneficiaries; ICICI Bank, Belrise among top picks 

Union Budget 2026 places a strong emphasis on structural reforms and fiscal discipline, aiming to accelerate and sustain India’s economic growth. The government’s focus is on enhancing productivity and domestic competitiveness, with targeted support for domestic manufacturing, energy security, and reduced import dependence in the face of global uncertainty, said SBI Securities.

A key proposal is the increase in capital expenditure to Rs 12.2 trillion for FY27, while maintaining fiscal consolidation. This aims to boost long-term stability and inclusive development by prioritising capacity building and productivity improvements across key sectors, it said.

From a capital markets perspective, the budget’s higher Securities Transaction Tax on futures and options is intended to discourage speculative trading, while treating buyback gains as capital gains could encourage undervalued companies to pursue buybacks. Higher investment limits for Persons Resident Outside India are likely to attract more stable, long-term capital, it noted.

The budget outlines ten priority areas- scaling up manufacturing in strategic and frontier sector; modernising legacy industries; creating 'champion' MSMEs; infra expansio; securing energy needs; developing city economic regions; linking academics with industry; expanding health and medical tourism; promoting AI in agriculture; and ensuring inclusive growth for farmers and women, SBI said.

The brokerage notes that the budget continues the capex-driven growth strategy while maintaining fiscal discipline. There is a focus on building capabilities in new-age technologies such as semiconductors, data centres, and electronics, and reducing import dependence to shield the economy from global volatility

The record capex is positive for defence, capital goods, railways, and infrastructure sectors. However, higher net market borrowings in FY27E (Rs 13 lakh crore) may keep bond yields elevated, affecting bank treasury portfolios and NBFC borrowing costs.

While increased borrowings could impact bond yields and banking portfolios, SBI Securities sees the overall approach as aligned with market expectations. Market attention may shift to bottom-up stock selection, progress in the India-US trade deal, exchange rate movements, and the global scenario, it said.

SBI Securities remains constructive on sectors such as auto, defence & aerospace, discretionary consumption, banking, cement, wealth managers, AMCs, EMS, pharma, mining and recycling. Data centres are highlighted as a potential high-growth sector with significant capex opportunities. Investors are advised to accumulate fundamentally sound businesses for the medium to long term.

It sees Data Patterns, Azad Engineering, Paras Defence & Space Technologies, Bharat Electronics, Solar Industries, Bharat Forge, Zen Technologies, Garden Reach Shipbuilders & Engineers, Rail Vikas Nigam Ltd, Ircon International Ltd, RITES, Jupiter Wagons, Texmaco Rail & Engineering, Titagarh Rail Systems, BEML, HBL Engineering, Kernex Microsystems, Quadrant Future Tek among key beneficiaries.

Other beneficiaries include names like L&T, TD Power Systems, Polycab, UltraTech Cement, Tata Communications, Anant Raj, APL Apollo Tubes, Oswal Pumps, Shakti Pumps, PFC, REC, SCI, MTAR Technologies, CG Power, Kaynes Technologies, Linde India, Carborundum Universal, Acutaas Chemicals, Biocon, Sun Pharmaceutical Industries, Lupin, Divis Labs, Anthem Biosciences and others.

SBI Securities has picked ICICI Bank Ltd (Target Price: Rs 1,535), UltraTech Cement Ltd (Target Price: Rs 14,378), 360 One WAM Ltd (Target Price: Rs 1,296), Belrise Industries Ltd (Target Price: Rs 191) and TD Power Systems Ltd (Target Price: Rs 855) among its top picks from post budget.