Construction spending, including roads and ports, as well as incentives for electrical mobility and renewables, as finance minister Nirmala Sisaraman’s budget speech on Tuesday, as policy makers are looking for ways to help the economy from the misfortune left behind. By pandemic that may be the focus on.
Investors have some budget announcements as India’s equity benchmarks fall and foreign funds flee the market amid recent global sellouts spurred by concerns over the Fed’s imminent rate hike. Hope to bring about mitigation.
That said, benchmark S & P BSE Senssex has risen the month after the budget day, in just three of the last eight years since Prime Minister Narendra Modi came to power in 2014.
Axis Securities Ltd. Neeraj Chadawar, Head of Quantitative Equity Research, said: Includes capital investment in public infrastructure for roads, water, subways, railroads, defense, digital infrastructure and green technology. “
Top sector and equity picks by some major brokers are:
infrastructure
The gauge of India’s top 30 companies in roads, aviation, ports, shipping, rail and other utilities services rose 36% in 2021. growth. ICICI Direct expects allocations to remain “active” with increased spending on roads, defense, water, housing and railroads.
Top picks include Polycab India, HG Infra Engineering, KNR Constructions, PNC Infratech, Larsen & Toubro, Thermax, KEI Industries, ABB India, Siemens India, Ramco Cements, UltraTech Cement, ACC, Ambuja, Bharat Dynamics, Bharat Electronics, NTPC, Container. It is included.India Corporation
Renewable energy / EV
With the government’s focus on reducing emissions and relying on fossil fuels, analysts look forward to much support for the development of infrastructure for electric vehicles and green energy generation.
“The driving force is expected for sustainable technologies with specific benefits aimed at accelerating EV adoption in India. In addition, the EV Charging Infrastructure segment will further support EV adoption. Is expected to be boosted by, “said Chadawar of Axis Securities.
Top picks include Maruti Suzuki India, Tata Power, Adani Green, Hero MotoCorp, Bajaj Auto, TVS Motors, Mahindra & Mahindra, Tata Motors, Minda Corporation, Gabriel India and Dixon Technologies. included
Rural / Agriculture
Sellside analysts look forward to continued support for agriculture and rural areas through more aid to food processing, production-related incentives, higher farm credits, and subsidies for fertilizer and crop protection. increase. Increasing spending on the agricultural industry benefits consumer goods companies that are suffering from rising input costs.
“With the rise of the Covid case, policy makers need to balance growing local demand with investment in infrastructure while continuing on the path of fiscal consolidation to maintain macro stability. I’m thinking, “Goldman Sachs (India) Securities Pvt. An analyst led by Santanu Sengupta wrote in a note.
Top picks include PI Industries, Dhanuka Agritech, Rallis, Godrej Agrovet, Hindustan Unilever, Britannia, Dabur and Nestle India.
Healthcare / Pharmaceutical
The government continues to focus on strengthening health infrastructure, increasing spending on businesses to drive production, expecting tax cuts for individuals purchasing health insurance, improved access to health care, and generous promotion of drug research. I am.
Top picks include Apollo Hospitals, Narayana Healthcare, Shalby Ltd., Gland Pharma, Krishna Institute of Medical Sciences, Healthcare Global Enterprises, Max Health, HDFC Life, SBI Life, and most pharmaceutical companies.
Note: Brokers surveyed for the top picks in the sector include Axis Securities, Religare Broking Ltd., ICICI Securities Ltd., and BofA Securities.
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