15 Stocks That Could Be Positive Beneficiaries Of Union Budget 2023-24

The Union Budget 2023-24 was presented on 1st Feb'23 amid high expectations. Since this was the last full budget before 2024 General Elections, it was expected that the government could announce some income support for the rural sector. Markets ended the day flat, though some stocks could benefit from Union Budget.

15 stocks that could be beneficiaries of the Union Budget 2023 as highlighted by Sharekhan

Beneficiaries according to Sharekhan	Key recommendations of Union Budget 2023
Kajaria Ceramics, Century Plyboards, Greenlam Industries, Supreme Industries, Astral, APL Apollo stocks to benefit	Pradhan Mantri Awas Yojana (urban plus rural) outlay increased by 66%/3% to Rs. 79,590 crore vis-à-vis FY23BE/FY23RE. Allocation towards Smart Cities increased by 3%/5.4% to Rs. 6,800 crore vis-àvis FY22RE/FY22BE.
National Fertilisers Limited, RCF, Coromandel International are some of the stocks that will benefit	FY23 fertiliser subsidy increased to Rs. 225,222 crore and budget support of Rs. 175,103 crore for FY24
Tata Steel, JSW Steel, JSPL, SAIL stocks are the key beneficiaries.	Infrastructure/Railway capex of Rs. 10 lakh crore/Rs. 2.4 lakh crore
Ethanol blending companies such Globus Spirits and sugar companies.	Ethanol blending: Basic customs duty on denatured ethyl alcohol reduced to nil from 5% now. The chemical is used in ethanol blending by companies. Positive Positive for ethanol blending companies such Globus Spirits and sugar com

Sustaining investment cycle high on agenda

According to Sharekhan, the Quality of investment also bodes well in the Union Budget 2023-24. "A healthy 33% increase in the capital expenditure target to Rs. 10 trillion or Rs. 10 lakh crore (3.3% of GDP, almost double vis-àvis FY19 capex as percentage of GDP) clearly reflected the government's priority to sustain investment cycle. More importantly, the capex/revenue expenditure at 28.6% is more than double of 14% in FY2018 and highlights the improving trend in quality of expenditure. Additionally, creation of the Urban Infrastructure Development Fund (UIDF) in line with RIDF with annual allocation of Rs. 10,000 crore and increased allocation towards priority sectors including green energy is likely to accelerate infrastructure development and thereby sustained economic momentum," the brokerage has said.

Boost to rural & manufacturing sectors including MSMEs

According to Sharekhan, considering broad-based economic development, the government ensured equal focus (without being excessively populist) towards the ailing rural economy and MSMEs. Introduction of the Agricultural Accelerator Fund mainly to enhance productivity and agri start-ups, enhancement of agri credit target to Rs. 20 trillion (up 11%) and a Rs 9,000 crore allocation for Credit Guarantee Scheme for MSMEs for additional collateral free credit of Rs. 2 trillion are likely to offer the needed impetus.

Disclaimer

Stock have been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.