Stocks to watch ahead of Budget 2022-23 – Summary of brokerage firms’ reports

Auto & Auto ancillaries:

Hero Motocorp ,Bajaj Auto, Escorts, Maruti Suzuki India, Ashok Leyland, Endurance Tech., Minda Industries, Minda Corp (Axis Securities)

Tata Motors, M&M, Minda Corporation, Gabriel India, Dixon Technologies (ICICI Direct research)

Agriculture and Specialty Chemicals:

For Agricultural sector – PI Industries, Dhanuka Agritech 

For Specialty Chemicals – All companies in the Specialty Chemical sector. (Axis Securities)

BFSI:

PSU Banks:

Budget expectation – Privatization of PSU banks: All PSU banks

Housing Finance:

Budget Expectations- Extension of CLSS scheme under PMAY: The government may extend the PMAY-CLSS scheme in-line with government’s vision to provide Housing for All by 2022 as the pandemic has resulted in project delays • Increase in tax benefits on housing loans for interest payment and principal repayment. • Redefining ‘ Affordable Housing’ slab to expand benefits for homebuyers:

positive for all Housing Finance Companies (Axis Securities)

MSME sector:

Budget expectations – Rebate in taxation, simplifying investment, and offering further incentives to MSMEs are some expectations from the upcoming Budget. Reducing compliance (GST) burdens and registration norms for online players would enable faster digitization of MSMEs. 

Positive for most Banks and NBFCs (Axis Securities)

Insurance:

Budget Expectations – The government may also look at providing further tax incentives to enable people to buy adequate health insurance which has gained importance amidst the pandemic. A separate bucket for investment in life insurance for tax rebates under section 80 (C) is expected.

Positive for Insurance companies. (Axis Securities)

Cement:

Budget Expectations: We expect budget to facilitate and expand overall infra which will positively benefit cement companies with higher demand for their products.

Stocks: ACC, Dalmia Bharat Ltd, JK Cement, Birla Corp & Orient Cement (Axis Securities)

Consumer Durables:

Stocks: Amber Enterprises • Dixon Technologies • Polycab India • Sheela Foam (Axis Securities)

FMCG & Retail:

Positive : Dabur, HUL, Britannia, Asian Paints, Jyothy Labs, Emami

FMCG, Retail and Apparel companies

Nestle, Britannia, Marico, Godrej Consumer Products

Negative: ITC, Godfrey Phillip, VST Industries (Axis Securities)

For Retail: ABFRL,Trent, Titan, Vmart (ICICI Direct)

Infrastructure:

Stocks: KNR Const, PNC Infratech and H.G. Infra Engineering. (Axis Securities)

Metals & Mining:

Stocks: SAIL, and Hindalco (Axis Securities)

Pharma:

Stocks: Gland Pharma, KIMS, HCG (Axis Securities)

Healthcare: Apollo Hospitals, Narayana Healthcare, Shalby Ltd (ICICI Direct)

Textile:

Stocks: Welspun India • Indo Count • Trident • Gokaldas Exports • Himatsingka Seide (Axis Securities)

Stocks: KPR Mills, Gokaldas Export (ICICI Direct)

Hotels:

Stocks: EIH, TajGVK, Lemon Tree Hotels (ICICI DIrect)

Gas:

Stocks: Gujarat Gas, Indraprastha Gas, Mahanagar gas, Adani total gas, Gail, Petronet LNG

Telecom:

Stocks: Bharti Airtel, Reliance, Vodafone Idea (ICICI Direct)