As Finance Minister Nirmala Sitharaman resisted the lure of populist schemes in an election year but followed the fiscal deficit consolidation path by maintaining its investment-led spending growth strategy, investors have welcomed the interim Budget. It also throws up scores of stock ideas from the world of infrastructure, railways, capital goods, renewables, solar power, tourism and agriculture.

“We believe the boost to housing will have a multiplier effect on the economy, benefitting construction related sectors and cement, steel etc. Overall, the government’s intent to boost economic growth can be seen. Our portfolios currently are positioned to play the growth story,” Axis Mutual Fund said.

Here are top stock recommendations from different brokerages after Budget:

Tourism

Tourism Finance Corporation is seen as a beneficiary of the government’s decision to provide long-term interest-free loans to states for financing the development of iconic tourist centres, branding and marketing them at the global scale.

Praveg is in focus because Sitharaman has promised to address the emerging fervour for domestic tourism and build amenities on islands, including Lakshadweep.Other hotel stocks in focus include IRCTC, ITDC, BLS International, Lemon Tree and EIH.

Housing finance

Pradhan Mantri Awas Yojana (Grameen) is close to achieving the target of 3 crore houses. The Budget gave a target of additional 2 crore houses for next 5 years. HUDCO is one of the top beneficiaries. Others in the list include Home First Finance, Repco Home Finance, Aavas Financiers, Aptus Value Housing Finance, LIC Housing, PNB Housing, NBCC and Purvankara.

Rail stocks

After the success of Vande Bharat trains, the FM announced around 40,000 more rail bogies will be converted to Vande Bharat coaches. Stocks such as Jupiter Wagons, Titagarh Rail Systems, Siemens, RVNL would benefit from the manufacturing of Vande Bharat trains, Sanjay Moorjani, Research Analyst at SAMCO Securities, said.

Solar stocks

Through rooftop solarization, one crore households will be enabled to obtain up to 300 units free electricity every month. It would save Rs 18000 to 21000 crore worth in electricity per annum. “The amount saved will result in increasing discretionary spending in the economy, which means higher demand for housing, auto, white goods, personal goods among others,” market advisor Deven Choksey said.

Stock beneficiaries include IREDA, Websol, Suzlon Energy, Sterling and Wilson, KPI Green Energy, Visaka Industries, Tata Power and Waaree Renewable.

Microfinance stocks

The Lakhpati Didi Scheme, aiming to empower two crore women in villages, not only stimulates the rural economy but also enhances credit demand for micro-financiers, particularly from women and self-help groups, potentially reducing stress on asset quality issues. Credit Access Grameen, Fusion Microfinance, Muthoot Microfinance are some of the stocks that could see a positive impact of this scheme in the medium term, said Veer Trivedi of SAMCO Securities.

Agriculture and Food Processing

The Budget announced application of nano DAP on various crops will be expanded in all agro-climatic zones. The use of nano fertilizers will improve crop yield with less fertiliser consumption. Pradhan Mantri Matsaya Sampada Yojana would be stepped up to enhance aquaculture productivity. 5 Integrated Aquaparks would be set up. Players such as Avanti Feeds, Coastal Corporation, Apex Frozen Foods will be the key beneficiaries of the PM Matsya Sampada Yojana, Axis said.

Auto stocks

With a continued focus on the green economy, the government will expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure. Greater adoption of e-buses for public transport networks will be encouraged through a payment security mechanism. The Budget is positive for commercial vehicle auto OEMs such as Ashok Leyland, Tata Motors, Olectra Greentech, JBM Auto.

Power, oil and gas stocks

Allocation to the power sector has been increased to Rs 20,502 lakh crore in FY25. Hem Securities has picked Gensol Engineering, Waree Renewable, IOC and Servotech Power Systems as top gainers.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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