Union Budget 2026: BEL, CESC, M&M Fin, Amara Raja among 15 stocks to watch

With global uncertainty, domestic growth resilience, and fiscal discipline all in play, the Union Budget 2026 is expected to strike a balance between growth support and macro stability, Axis Securities said in its pre-Budget note. The domestic brokerage said key focus areas are likely to include roads, railways, logistics infrastructure, defence and indigenisation of equipment, urban infrastructure and housing, power transmission, renewables, and green energy. 

Axis Securities said the government is expected to continue on its fiscal consolidation roadmap, targeting a fiscal deficit of around 4.2-4.4 per cent of GDP for FY27.

"Achieving this would signal strong policy credibility to both domestic and global investors. Containing the fiscal deficit is important as it limits government borrowing, reduces upward pressure on bond yields, and keeps inflation expectations anchored," the domestic brokerage said. 

While major tax cuts may be fiscally constrained, the Budget may focus on tax simplification rather than aggressive rate cuts, it said. Possible areas include a reduction in litigation and faster refunds, targeted tax incentives for manufacturing, green energy, and innovation. 

From its coverage universe, Axis Securities sees Ultratech Cement, Maruti Suzuki India Ltd, Bharti Airtel Ltd, NALCO, Prestige Estate Ltd, Chalet Hotels, Max Healthcare and Credit Access Grameen Ltd as Budget plays.

Among its non-coverage, Axis Securities finds GMDC (rare earth play), Bharat Electronics Ltd (BEL) and MTAR Tech (defence play), Amar Raja Energy ( EV play), CESE (power reform play ), M&M Financial (credit growth) and Jain Resource Recycling as Budget plays. 

BFSI
Axis Securities anticipated continued thrust on capital expenditure. which could act as a trigger to support corporate credit growth for banks. From banks, it is positive on State Bank of India (SBI), Bank of Baoda (BoB), HDFC Bank and ICICI Bank. In its non-coverage universe, it likes Canara Bank. 

"We expect a large one-time microfinance credit guarantee scheme for NBFCs to strengthen MFI-NBFCs’ position by improving access to funding and easing liquidity pressures, while ensuring continued lending to low-income households," it said.

The brokearge is positive on Credit Access Grameen.  

Besides, Axis Securities sees initiatives to make working-capital loans more affordable for MSMEs and export-oriented firms are likely, aimed at mitigating tariff headwinds. A dedicated refinancing window for NBFCs and wider credit guarantee coverage would be keenly watched out for, Axis Securities said.
It is positive on DCB Bank and CUB.

Axis Securities said an announcement regarding lowering of minimum loan size from Rs 20 lakh currently to Rs 1 lakh for NBFCs under the SARFAESI Act may enable faster recovery of retail loans and improve credit flow could be expected. It is positive on L&T Finance and Tata Capital. 

"We could expect announcements around a tax-aligned framework that encourages long-term retirement planning, greater policy support for micro-insurance, and measures that improve affordability and coverage," it said while seeing SBI Life as key beneficiary. 

Cement 
For the cement Sector, the Union Budget 2026–27 is viewed as a critical "volume driver" event. Following the significant GST rationalisation in late 2025, where rates were slashed from 28 per cent to 18 per cent, the industry is now shifting its focus toward execution, capacity absorption, and green transition. The primary expectation is a 10–15 per cent hike in capital expenditure, Axis Securities said.

All eyes will be on fresh allocations for PMAY-U 2.0 (Urban) and PMAY-G (Gramin). With the government's push for "Viksit Bharat," a target of 2–3 crore additional rural houses would be a major volume catalyst, it said.

"Logistics accounts for nearly 25–30 per cent of the total cost of cement. Expectation of faster completion of last-mile rail connectivity to cement clusters to reduce dependency on expensive road transport," it said.

Axis Securities is positive on UltraTech Cement, Ambuja Cements, Dalmia Bharat Ltd and JK Cements Ltd. 

Pharmaceuticals
Axis said the Union Budget may provide incremental policy and fiscal support to the pharmaceutical and medical technology sector to strengthen domestic
manufacturing and reduce import dependence. A key focus is anticipated on extending the Production-Linked Incentive (PLI) scheme to cover Active Pharmaceutical Ingredients (APIs), intermediates, and select high-value medical devices, in line with the government’s Atmanirbhar Bharat objectives. 

"We expect renewed emphasis on innovation through the possible restoration of the 200 per cent weighted tax deduction on R&D expenditure. This would support investments in complex generics, biosimilars, vaccines, and novel therapies, aiding long-term competitiveness," Axis Sceurities said.

Among coverage universe, it is positive on Aarti Drugs and Dr Reddy’s and from the non-coverage group on Divi’s Labs, Syngene International Laboratories & Sun Pharmaceuticals. 

Healthcare 
With the government’s continued focus on expanding healthcare infrastructure, promoting medical tourism, strengthening Ayushman Bharat coverage, and improving access to long-term financing, hospital operators with strong expansion pipelines, tertiary care capabilities, and presence in key medical hubs are poised to see significant opportunities. These measures are expected to support faster capacity addition, higher occupancies, and sustained
improvement in profitability, Axis Securities said.

It is positive on Max Healthcare, Fortis Healthcare, KIMS Healthcare and Healthcare Global Enterprises (HCG). It also likes non-coverage stocks Apollo Hospitals, Aster DM Healthcare and Narayana Hrudayalaya.

Hotels
Axis Securities said the industry anticipates infrastructure status for hotels, particularly for projects in tier-2 and tier-3 cities, to enable
access to long-term, low-cost financing. Additionally, rationalisation of GST rates on room tariffs and relief from the inverted duty structure are anticipated, which may support demand and improve margins.

"The sector also expects targeted incentives for new hotel development, including tax holidays or capex-linked benefits for greenfield projects
and heritage hotels, to accelerate room additions. Continued allocation toward tourism infrastructure, regional connectivity (UDAN), and destination development is likely to drive sustained growth in domestic and inbound travel," Axis Securities said.

All eyes would be on Indian Hotels (IHCL), Chalet Hotels, Mahindra Holidays, LemonTree Hotels and ITC Hotels.

Telecom
From the Union Budget 2026–2027, the Cellular Operators Association of India expects a reduction in the license fee from the current 3 per cent to 0.5–1 per cent of AGR. Telecom operators have stated that the fee should primarily cover the government’s administrative costs rather than serve as a major revenue-generating tool, Axis Securities said.

The industry is also seeking GST relief on regulatory payments, including exemption or reduction of GST from 18 per cent to 5 per cent on license fees and spectrum charges. Any such announcement is seen positive for Bharti Airtel Ltd and Vodafone Idea Ltd.

Metals & mining
Higher allocation for infrastructure and construction is expected to continue, which may drive steel and aluminium demand. The Budget is expected to unveil a
new policy to slash import reliance by boosting domestic production of silver, copper, and zinc. Regarding Rare Earth Elements (REE), the government is aiming to build a long-term domestic ecosystem to secure supply chains for high-tech industries like EVs and electronics, Axis said.

It sees positive impact on any such announcements on Tata Steel, NALCO, SAIL,
Hindalco, Hindustan Zinc and Hindustan Copper.

Power
The focus will be on sustained budgetary allocation for MNRE beyond Rs 26,549 crore allocated in FY26. Also eyes would be on viability gap funding for offshore wind projects beyond the current 1 GW allocation along with announcements towards accelerating wind energy capacity additions, which crossed 54 GW in November 2025. There are hopes of enhanced transmission infrastructure outlay to address grid curtailment issues. 

Intra-state transmission augmentation, policy support for HVDC transmission manufacturing in India, and increased allocation for the Reforms Linked
Distribution Scheme to incentivise DISCOM privatisation and PPP models are all eyed. 
Axis Securities like JSW Energy, NTPC and NLC India among power utilities, 
Skipper Limited in T&D Component and EPC, Genus Power among smart metering stocks and Inox Wind among wind generators. 

Infrastructure
With the government intensifying its focus on holistic infrastructure development, particularly highways, railways, and urban infrastructure, companies operating in these segments are well positioned to benefit from significant growth opportunities, Axis said.

It is positive on Kalpataru Projects International, KEC International, J Kumar Infraprojects, Ahluwalia Contracts, RITES and GR Infra. It is also positive on Rail Vikas Nigam and Titagarh Rail Systems. 

Automobile
Higher disposable income is seen supporting demand. The FY27 Budget is seen helping translate higher take-home income into consumption. As stricter CAFE-III emission norms are expected to come into effect from FY28, the FY27 Budget may focus on helping companies prepare through R&D support and incentives for fuel efficiency, electrification, and lightweight technologies. All eyes are on Maruti Suzuki India, TVS Motors, Eicher Motors, Bajaj Auto, Hero MotoCorp,
Ashok Leyland and Mahindra & Mahindra. 

Real estate
Axis Securities sees a revision for interest payment deductions from Rs 2 lakh to Rs 5 lakh  under section 24(b) for tax relaxation. It also expects a revisit on tax holidays for affordable housing developers. It prefers Prestige Estates and Oberoi Realty. It said Godrej Properties and Puravankara may benefit from incentives on affordable housing.