A host of companies are likely to benefit from the recommendations in the Union Budget 2015-16.
While all companies would benefit in the long term by a cut in corporate tax, there are few others that would benefit by way of specific recommendations. Here are shares that you could buy after Union Budget 2015-16.
Housing Finance Companies
It was largely anticipated that there would be tax sops on home loans and this would provide a boost to housing finance companies.
This is because the Union Budget has made an outlay of Rs 22,400 crores for the housing sector.
The government plans to build as many as 40 million homes in rural areas by 2022 and 40 million homes in urban areas.
Almost all of the housing finance and real estate companies mostly those that have presence Pan India would benefit.
Companies like Unitech and DLF would be among the big gainers. Apart from these housing finance companies also stand to gain because of the thrust on housing.
LIC Housing Finance, Dewan Housing, GIC Housing and HDFC would be among the gainers in the more long term. The shares of these companies are likely to gain from the Union Budget 2015-16.
Road Infrastructure Companies
Companies engaged in the building of roads also stand to gain. The Union Budget has laid a thrust on roads where the addition will be to the tune of 100,000 kilometers.
Road sector players particularly companies like IRB Infra and Sadbhav could be more of the long term benefeciaries.
Companies Catering to Sanitary Ware
The Swach Bharat initiative is being taken very seriously by the government, The aim to build 6 crore toilets in the coming years is going to benefit players in the sanitaryware business like Hindustan
Sanitaryware, Cera and Somany.
Hiking the import duty on steel would mean that companies like Tata Steel, JSW Steel, SAIL etc. have some leeway and pricing power, thus improving profitability.
Real Estate Companies
Share price of real estate companies could also be a good bet now, given the decision by Finance Minister to change the capital gains for REITs. Companies like DLF, and Prestige Estates could benefit from the move.