Indian Union Budget 2021-22: With all eyes on the Union Budget 2021 today, Indian share markets may witness intense volatility. Last week, BSE Sensex and Nifty 50 fell almost six per cent. Sell-off by foreign portfolio investors (FPIs) and the impending Union Budget created investors jittery final week, according to analysts. FPIs remained sellers for the fourth consecutive session on Friday, pulling out $801.14 million. Finance Minister Nirmala Sitharaman, had tabled the Economic Survey 2020-21 in the Lok Sabha on Friday. GDP development is observed expanding by 11 per cent in the 2021-22 fiscal. Now, today, on the day of the Union Budget 2021, marketplace watchers advise a couple of sectors and stocks which might stay in concentrate today.
Sectors to watch on Budget day
Nirali Shah, Senior Research Analyst, Samco Securities
Expectations are higher for a quantity of pro-financial policies aimed at boosting each financial activity and stimulus to these impacted by the pandemic. In its quest to increase financial activity, the government may announce favourable policies in assistance of infrastructure improvement in the nation. There could also be an announcement on economic assistance to MSMEs and smaller sized businesses to incentivise larger lending to them.
Various labour reforms and heightened expenditure push in healthcare, true estate, railways could also be the generic theme playing out on Budget Day. Moreover, in light of the current skirmishes with China and to increase sources for defence modernisation, there could also be an raise in budgetary allocation towards this sector. All in all, markets are anticipated to witness heightened volatility in the week ahead.
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Ajit Mishra, VP Research, Religare Broking
All eyes are on the Budget for plans on how the government would place the economy once again on the development track when the fight with the COVID-19 pandemic is nevertheless on. The government and the RBI have taken various measures in the final year but particular places nevertheless need to have assistance to come back to normalcy. Further, we think the concentrate will be on growing spending particularly in priority sectors such as infrastructure, rural and healthcare. Additionally, value would be offered to distressed sectors such as travel & tourism, airlines, and so forth.
Also, emphasis will be on Make In India and digitisation, which will help financial development as nicely as assistance job creation. Besides, the disinvestment program, which got delayed this year, is anticipated to roll out by FY22, and will assistance the government’s future funding. Having mentioned that, investors have higher expectations from the government. On Budget Day, sectors such as infrastructure, automobiles, agriculture & allies, FMCG and pharmaceuticals will be on the radar.
Stocks to watch on Budget day
Nirali Shah, Senior Research Analyst, Samco Securities
Larsen & Toubro (L&T), with its sturdy balance sheet, enormous order book and powerful execution capabilities, appears to be a very good bet. Traders can also look at PSUs such as GAIL, NTPC, Indian Oil Corp Ltd (IOCL), as any news on the disinvestment front will prove to be favourable for these stocks. PNC Infratech, HUDCO, Dalmia Bharat are a couple of names which could stay in concentrate on 1st February.
Ajit Mishra, VP Research, Religare Broking
If the government announces measures associated to infrastructure push then stocks such L&T, ABB India Ltd in capital goods, as nicely as stocks in cement (ACC Ltd, Ambuja Cements, Ultratech Cement, and so forth) and realty space (Oberoi Realty and Godrej Properties), will be in concentrate. There is a higher expectation that the price range might provide considerably relief for auto businesses and stocks such as Maruti Suzuki, Ashok Leyland, Bajaj Auto, Mahindra & Mahindra will advantage in that case.
Besides, any announcement regarding the rural economy, more discretionary revenue for shoppers and allocation towards the agriculture sector will be vital for FMCG, agriculture and allied sector, and will most likely advantage stocks such as Coromandel International, Rallis India, Britannia Industries, Dabur India, Emami, Hindustan Unilever Ltd (HUL), and so forth. Nonetheless, any substantial raise in sin taxes will be unfavorable for businesses manufacturing cigarettes, liquor and tobacco as a result stocks such as ITC, VST Industries, Godfrey Phillips India, United Spirits, and so forth will stay on the radar.
(The stock suggestions in this story are by the respective study and brokerage firm. TheSpuzz Online does not bear any duty for their investment tips. Please seek the advice of your investment advisor ahead of investing.)