Stocks for Budget 2022: SBI, HDFC Ltd, Tata Power and BEL among 15 stocks to buy before budget: Sharekhan

As Union Budget 2022-23 draws near, brokerage is of the view that Union Budget 2022-23 may not surprise market positively as last year as most tailwinds are already factored in, and the government’s focus could be on boosting existing policy initiatives in FY23E rather than announce any new schemes. Budget 2022-2023 is likely to be neutral from the capital market perspective, said Brokerage firm Sharekhan in its report. However, it highlighted that the undertone of the speech is expected to be pro-growth though political compulsions could lead to populistic measures in the light of the forthcoming state elections. 

It is of the view that the government may not opt for an aggressive fiscal consolidation path hereon and will have to maintain a balance between economic growth and fiscal consolidation, which should bode well for the bond market. 

See Zee Business Live TV Streaming Below:

Brokerage Sharekhan believes that the government may continue with its focus on healthcare and infrastructure-related capital expenditure besides kick-starting the private capex cycle. 

"On the other hand, focus would also be on providing relief to select income segments (largely rural and blue-collar employees suffering from stress in the MSME sector) and select sectors such as tourism, travel, MSME & certain services segments affected by regular restrictions," said Sharekhan in its research report.  

Given the need to support economic revival, kick-starting the investment cycle would continue to be high on the policy agenda. "Recent reports indicate that the budgetary allocation on capital expenditure could be around Rs. 6.5 trillion in 2022-23, up by close to 20% as compared to Rs. 5.5 trillion (26% up from 2019-20) in 2021-22," it said.  

Based on its research, the brokerage house has picked 15 stocks that can be bought in run up to the Union Budget 2021. It recommended stocks ranging from banking, oil & gas, Power, infra and Breweries and distilleries segments.  

The picks are: ICICI Bank, SBI, HDFC Ltd, Reliance Industries, Thermax, Tata Power, L&T, BEL, Tata Motors, Ultratech, M&M, DLF, Power Grid, HCG, Globus Spirits.