NTPC, Nestle, Inox Wind, 6 other stocks that Axis Securities has on its Budget play list
As the country gears for the Budget announcement next week, Axis Securities believes that the upcoming Budget will likely strengthen the Centre's 'Viksit Bharat' theme.
In its pre-budget report, domestic brokerage Axis Securities underlined that over the past few years with the government undertaking most of the reforms outside the purview of the Budget, its impact on the equity market has reduced substantially.
“We believe that the upcoming budget will likely support the vision of "Viksit Bharat" by 2047, following a transformation similar to the one seen in the last decade. With the formation of the NDA 3.0 government, there are increasing expectations from the market for some allocation to address rural challenges and a potential cutback on capital expenditure,” said Naveen Kulkarni, Chief Investment Officer at Axis Securities PMS.
Hero MotoCorp
The brokerage believes the upcoming budget being the first Union Budget after the general elections 2024 will aim at boosting rural consumption, which would support discretionary spends and thereby benefit rural-focused 2Ws and entry-level 4W OEMs, along with auto ancillary companies supplying to such OEMs.
UltraTech Cement
The brokerage expects budget to facilitate and expand overall infra development which will positively benefit cement companies with higher demand.
Nestle
The brokerage is of the view that investments in digital infrastructure, skill upgradation, job creation, and MSME development are expected to indirectly reignite consumption spending in the economy, particularly in rural areas. And consequently, it expects the MNC company to be the likely beneficiary.
NTPC
The brokerage is of the view that the Centre's unwavering focus on roads, power, urban development, and railways will create key long-term economic multipliers.
Praj Industries
Praj Industries has been listed as one of the mid-cap bet by the brokerage.
Inox Wind
The brokerage opined that to achieve the target of 500 GW of renewable energy capacity by 2030, a significant boost is required for the renewable sector. This can be achieved through reforms such as enhanced viability gap funding for areas like battery storage, offshore wind plants, and solar energy.
J. Kumar Infraprojects
The brokerage expects the capital outlay on the infrastructure sector to witness a healthy increment in the Union Budget 2024-25 to achieve the targets set under the National Infrastructure Pipeline and Gati Shakti Master Plan.
Ahluwalia Contracts (India)
The brokerage sees the major focus in the upcoming budget to be on key infrastructure segments such as roads, railways, airports, and urban infrastructure.
V-Mart
Increased investment in rural infrastructure, capital expenditure, and improvements in rural connectivity are likely to boost consumption demand in rural areas, noted the brokerage.