Stocks That Could Be In Action Ahead Of Union Budget 2023-24

Here are some stocks that could be in action ahead of the Union Budget 2023-24. Most of these stocks would be from the infra space. We are not suggesting any buy, sell of hold on these stocks and these are just based on possibilities and the recommendations of the past.

Infrastructure would be an important theme in the bud

As always infrastructure and agriculture could see some more recommendations, which is why there could be some positions in these stocks ahead of the Union Budget. Last year PM Gati Shakti Yojana was announced driven by seven engines: Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure. Apart from this there was a formulation of Master Plan for expressways and recommendations to completing 25000 km national highways in 2022-23.

The budgetary recommendations also included a unified Logistics Interface Platform allowing data exchange among all mode operators.

 

Agriculture: Another theme that could play out

Last year's budgetary recommendations included those to promote chemical free natural farming starting with farmers' lands close to river Ganga. There were also some recommendations to promoting post harvest value addition, consumption and branding of millet products. Delivery of Digital and Hi-Tech services to farmers in PPP mode. Among the other recommendations were launching fund with blended capital to finance agriculture start ups.

Stocks from infra, agriculture, railway and defence stocks could be in action

Among the stocks that could see action would be Infra based stocks like L&T, NCC among others. Also, agri and fertilizers stock could see some action and also stocks associated with the Railways like Container Corporation, Titagorh Wagons etc. Last, but, not the least we could see also some action in defence stocks like Bharat Electronics, Bharat Dynamics, Cochin Shipyards etc.

Sector specific recommendations

While these could be based on trends of the past, there could be sector specific action as well. For example, if we see Budget recommendations for the real estate sector like tax benefits on interest paid on home loans, we could see volatility in real estate sector. In short, it is all likely to be sector specific. However, some sectors like defence, railways, infra and agriculture are always in action as substantial amounts of allocation is done for these sectors.