Tomorrow, Finance Minister Ms. Nirmala Seetharaman will present Union Budget 2022. In this article we will discuss expectations from Budget and Various Sectors which can get benefit from it. Also, we will discuss Top Stocks from those Sectors to focus on.
What is Union Budget?
The Union Budget of India also referred to as the Annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India. The Government presents it on the first day of February.
1. Infrastructure Sector
It is expected to get the highest focus in the Budget. The corporate sector is doing well, with low-interest rates, tax burden, and PLI schemes, but the Rural and MSME sectors are struggling, so the government might focus there.
Top Stocks in Infrastructure Sector:
2. Agriculture, Transport & Hospitality Sector
Also, this being an election year of UP and Punjab, the government might incentivize the agriculture sector.
Aid is also expected for hospitality and transport sectors struggling post-pandemic.
Top Stocks in Agriculture, Transport and Hospitality Sector:
3. Sustainable Energy and Electric Vehicles Sector
It can get tax breaks. Renewable energy, electric vehicles, could be another area that might find focus.
The PM announced in Glasgow about net-zero carbon emissions by 2070. There might be some announcements about this.
Top Stocks in EV and Renewable Sector:
⚡Sterling & Wilson
4. Sugar, Fertilizer, and Capital Goods Sector
Sectors such as sugar, fertilizers, capital goods are in focus which is evident from the advance-decline ratios of the indexes most of them have been led by small-caps.
Focus on capital expenditure is expected in the upcoming Budget.
Top Picks from this Sector:
5. Banking Sector
Banking will show higher growth in credit for both retail and corporates, and also higher NIMs due to increasing rates in the short term, while the peak NPAs are behind which will lead to lower credit costs, and maybe even write-back of some provisions.
Top Stocks from Banking Sector:
6. Real Estate & Cement Sector
Real estate is seeing a lot of activity in terms of new sales, Pre-sales and inventory are fast being absorbed by end-users. This sector comes out of a slump after 12 years of stagnant prices, and the financing cost/the mortgage is lowest at 6.5%.
Top Stocks from the Real Estate & Cement Sector:
⚡India Bulls Real Estate
7. Textile and Chemical Sector:
Some rationalization of duties may happen for textiles, chemicals to give a boost to China plus strategy.
Top Stocks from Textile & Chemical Sector:
Source: Various Articles on the Internet
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