Experts see infra, banking among other sectors benefitting the most from Budget 2022

Domestic equity markets cheered the announcements made by Union Finance Minister Nirmala Sitharaman in the Budget 2022-23 as the benchmarks ended nearly 1.5% higher on Tuesday. There were positive announcements being made for infrastructure and allied sectors, telecom, sugar, jems & jewellery, agriculture and defense sectors. In view of the recent announcements made in the budget, stock market experts are mostly bullish on infra, metal, renewable energy and manufacturing sectors.  

In a big boost to infra, FM Sitharaman announced an allocation of Rs 7.5 lakh crore towards capital expenditure for 2022-23, which is 35.4% higher than the ₹5.54 lakh crore allocated to capital expenditure last year. 

Speaking of sectors to benefit from this budget, Ashis Sarangi, SEBI registered RIA, Pickright Technologies, said the budget appears to be benefit infrastructure, banking, power and metal industries. 

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He said the infrastructure industry, together with supporting industries such as metal, real estate, and cement, would be sectors to benefit the most with Rs 7.5 lakh crore allocation. It will also be beneficial to Banks & NBFCs. This capex spending will also push the private sector to spend more on capital goods," he said.   

"Additional Rs 19,500 crores to manufacture equipment for solar power under the PLI scheme and clean energy, may also help Borosil renewable, Tata Power & IEX," added Sarangi.   

Sonam Srivastava, Founder, Wright Research, is of the view that infrastructure, logistics, cement, capital goods, real estate, agriculture, digital & fintech players, sustainability and EV segments would see Budget announcements working for them.   

"PM Gati Shakti initiative and policies to ease the compliance burden and increase digitization announced in the Budget 2022 will help these sectors perform well going forward," said Sonam.  

Initiatives for the EV and green energy sectors like Battery swapping reforms, 19,500 Cr PLI for Solar PV modules and green bonds will aid new age sectors such as digital, Fintech and EV. "Paytm, Policybazaar, Tata Power, and Minda Industries would be the stocks to watch out for in this space, " added. Sonam.  

Abhay Agarwal, Founder, and Fund Manager, Piper Serica, SEBI Registered Portfolio Management Service Provider, said the biggest beneficiaries are infrastructure companies and their ancillaries. Other winners would be renewable energy & biofuels, healthcare, education and financial tech sectors, he said.  

Meanwhile, Sarangi said that the budget has failed to provide immediate assistance to rural income growth and has failed to stimulate rural consumption in the short run. " As a result, it will have a negative impact on the auto, FMCG, and white goods industries until the income situation improves," he added.