7 Stocks To Buy Which Are Positively Impacted By The Union Budget 2022-23

The Union Budget 2022-23 has positively impacted a few sectors. Here are 7 stocks that are likely to be positively impacted as per Motilal Oswal.

L&T

The Union Budget has raised its allocation for capital expenditure to Rs 7.5 lakh crore in 2022-23, up from Rs 5.5 lakh crore in 2021-22. The government believes public investment will be necessary to support private investment that will in turn create demand. This will be positive for the company like LT. L&T remains the best play on a capex cycle in India.

Ultratech Cement

The Union budget 2022-23 has allocated Rs 480 billion for a housing plan, including affordable housing, in urban and rural areas. Ultratech Cement is in a strong position to gain market share, led by its strong distribution network given government's thrust on Infrastructure development and recent improvement in housing demand.

DLF

The Government announced the completion of 80 lakh homes to come up by 2023 under the Pradhan Mantri Awas Yojana and allocation of Rs 480bn under PMAY urban and rural. These announcements are expected to help boost the affordable housing market. This is positive for DLF given its strong momentum in both sales bookings and deal additions.

Bharti Airtel

India will conduct auction of airwaves to ensure telecom operators can launch 5G network by 2023. Government also announced fund allocation to ensure reach of faster broadband in rural areas. Bharti's superior execution quality and consistent subscriber and revenue market share gain will benefit company.

IRCTC

India will run 400 new, energy-efficient Vande Bharat trains in the next three years. The railway sector will also see 100 Gati Shakti Cargo terminals, which will be developed in next three years. With an eye on farmers, the rail sector will also develop "One Station One Product", which will leverage local produce carried on the railways. This is positive for IRCTC.

Can Fin Home

The budget has allocated 480bn for a housing plan, including affordable housing, in urban and rural areas. Can Fin has strong presence in the small and affordable housing space, coupled with healthy balance sheet, we expect it to be a big beneficiary.

BEL

Government has announced 68% of capital for the defence sector to be allocated to the domestic industry in 2022-23. It's also set aside 25% of its budget in defence research and development (R&D) for collaborating with the private industry. BEL is well-positioned to benefit from rising defense expenditure, aided by: a) a strong manufacturing base and execution track record, b) its relationship with defense and government agencies, d) its in-house R&D capabilities and e) its higher focus on exports to friendly countries.