Budget stocks in focus: RVNL, L&T, Ultratech, HUL, Suzlon, HAL Dabur, BHEL & more

Finance Minister Nirmala Sitharaman will present the first budget of the Modi 3.0 today with a host of sectors awaiting the slew of announcements for them. Here are the key sectors and stocks that could remain in the focus amid the budget today and later on the back of mounting expectations:

Infrastructure stocks: Increased capital expenditure and focus on infra sectors will be keenly watched by Dalal Street during the Union Budget.
Stocks to watch: Larsen & Toubro, KNR Constructions, Ultratech Cement, PNC Infratech, KEC International

Agriculture: Higher food inflation and distressed agriculture-based rural economy leave a major challenge for the government, which may be looking to leave more money in the rural economy to support the consumption.
Stocks to watch: Chambal Fertilizers, Kaveri Seeds, Shakti Pumps, Escorts Kubota, VST Tillers, UPL and more.

Rural Consumption: Investment and incentives to push rural consumption through skill upgradation, job creation and MSME support shall aim to increase rural consumption indirectly.
Stocks to watch: Hindustan Unilever, Dabur India, TVS Motors, Marico and more.

Capital Goods: The capital goods sector anticipates incentives for energy transmission technologies, along with a push for investment in transmission and distribution. Higher capex is the key enabler for a pick-up in private capex.
Stocks to watch: BHEL, ABB India, Thermax, Polycab India, CG Power, Cummins India, Elgi Equipments

Defence: Defence stocks will be on the radar primarily on the backdrop of consistent demand, government backing and long-term contracts. Geopolitical concerns and internal conflicts call for a renewed focus on the security and defence industry.
Stock to watch: Hindustan Aeronautics, Cochin Shipyard, BEML, Bharat Electronics, Bharat Forge, Bharat Dynamics, Zen Technologies, Data Patterns and more

Disinvestment: Key PSU stocks will be on radar being divestment candidates as the Finance Minister Nirmala Sitharaman looks set to unveil disinvestment target for FY25 today.
Stocks to watch: Mazagon Dock Shipbuilders, IRFC, IDBI Bank, Shipping Corporation of India (SCI), NFL, and Rashtriya Chemicals & Fertilizers,  Bank of Maharashtra.

Renewable Energy: The upcoming Union Budget is expected to increase investments in renewable energy, focusing on clean technologies and expanding solar and wind power projects.
Stock to Watch: Tata Power, Suzlon, NPTC, Inox Wind, Adani Green Energy,  Sona BLW

Railway: Expansion of the existing railway network, with a focus on safety. The KAVACH safety-related capex is much needed in the current scenario. Higher allocations for the railway and power sectors, may lead to increased order and opportunities.
Stocks to watch: IRCTC, Container Corporation of India, RVNL, RailTel, Ircon, Titagarh Railsystems, Jupiter Wagons

Automobile Sector:  The government may provide extension of subsidy schemes for EVs and incentivize alternative fuel segment including CNG, hydrogen and hybrid segment.
Stocks to watch: Hero MotoCorp, Bajaj Auto, M&M, Tata Motors, Endurance Technologies, Olectra Greentech

Manufacturing: The government may broaden the scope of PLI schemes to new sectors such as chemicals, services, electronic components and sub-assemblies.
Stocks to watch: Dixon Tech, Amber Enterprises India, SJS, Rolex Rings, Minda Corp, KPR Mills, Raymond, Trident, Nitin Spinners

Real Estate Sector: Real estate developers are seeking a slew of measures, including the rationalization of taxes, further allocation to the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund, and continued government support for affordable housing.
Stocks to watch: DLF, Godrej Properties, Oberoi Realty Sobha, Sunteck Realty, Arvind Smart, Aadhar Housing, CanFin Homes

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