With the Union Budget 2025 set to be presented tomorrow, several sectors and stocks are under the spotlight due to anticipated policy announcements and allocations.
Here’s a look at key areas and notable stocks, along with recent recommendations from fund houses:
1. Infrastructure and Construction
The government’s continued emphasis on infrastructure development could benefit companies in this sector.
- Larsen & Toubro (L&T): JM Financial has a ‘buy’ recommendation on L&T with a target price of Rs 3,825, citing the company’s strong order book and execution capabilities.
2. Railways
Anticipated investments in railway infrastructure may positively impact related companies.
- Container Corporation of India (CONCOR): Analysts recommend buying CONCOR between Rs 760 – Rs 740, with a target of Rs 850, highlighting its strategic position in the logistics sector.
3. Consumer Goods
Changes in taxation and policies affecting consumer spending can impact companies in the consumer goods sector.
- ITC Limited: Analysts suggest purchasing ITC near Rs 435, targeting Rs 455, noting its consolidation phase post the demerger of ITC Hotels.
4. Metals and Mining
Policy measures related to infrastructure and manufacturing could influence the metals sector.
- Tata Steel: Analysts advise buying Tata Steel near Rs 125, aiming for Rs 135, citing its proximity to strong support levels after a recent correction.
5. Renewable Energy and Power
The government’s push towards sustainable energy solutions is expected to benefit companies in the renewable energy sector.
- NTPC Limited: As India’s largest power utility, NTPC is expanding its renewable energy portfolio. Fund houses have shown interest in NTPC due to its commitment to increasing green energy capacity.
6. Banking and Financial Services
Policy measures aimed at boosting economic growth could have implications for the banking sector.
- Bajaj Finance: The company reported an 18% year-on-year profit surge for the quarter ending December 31, 2024, and has forecasted a 22-23% growth in profit for the fiscal year ending March 2026. This strong performance has led at least 12 analysts to raise their target prices for Bajaj Finance, with a median increase to ₹8,500.
7. Consumer Goods
Changes in taxation and policies affecting consumer spending can impact companies in the consumer goods sector.
- ITC Limited: Analysts suggest purchasing ITC near ₹435, targeting ₹455, noting its consolidation phase post the demerger of ITC Hotels.
8. Aviation
Infrastructure development and policy support for the aviation sector could influence airline companies.
- InterGlobe Aviation (IndiGo): As a leading airline in India, IndiGo is expected to benefit from increased air travel demand and potential government initiatives to boost the aviation sector.
9. Agriculture
Reforms in the agricultural sector, such as increased support for farmers and incentives for agro-based industries, could impact related companies.
- UPL Limited: A major player in agrochemicals, UPL is anticipated to benefit from favorable agricultural policies and increased spending in the sector.
10. Automobile
Incentives for electric vehicles (EVs) and changes in taxation could influence the automobile sector.
- Tata Motors: With a growing focus on EVs, Tata Motors is well-positioned to benefit from policies promoting sustainable transportation.
Investors should monitor these sectors and stocks as the budget unfolds tomorrow.
