Higher allocation to agriculture in Union Budget 2016-17

There are hopes that the government may raise expenditure on agriculture, given the distress in the farming sector.

Higher budgetary allocation could benefit Jain Irrigation, which is among the top players in micro irrigation systems, agro processed products, tissue culture plants and plastic pipes.

It would be a surprise, if the government does not earmark higher amounts for the agriculture sector in the Union Budget 2016.

Thrust on Infra in Union Budget 2016-17

The one area that is likely to see a thrust is also the roads sector. IRB is a leading player in the BOT business and manages the prestigious Mumbai Pune Expressway.

It has completed projects that are operational including Pune Nashik, Surat Dahisar, Pathankaot Amristar, Tumkur Chitradurga etc. The list is pretty long.

Could be a beneficiary if higher amounts are allocated to the road sector.

Good presence across the infra business

NCC is another leading player in the infrastructure business. The Union Budget 2016 is likely to lay an emphasis on infrastructure, which could benefit NCC.

The company has executed several prestigious projects and currently has five road projects , 380 MW of Hydro Electrical Projects, two non-metro airports, one sea port and its asset portfolio in different stages of development through concession route.

Its subsidiary NCC Infra NCC Urban Infrastructure's has presence in residential and commercial complexes, townships, SEZs and serviced apartment complexes across Bangalore, Hyderabad, Kochi, Vizag, Guntur, Ranchi and Dubai.

Possible re-capitalization of banks

The one reason to bet on State Bank of India (SBI) is that the Union Budget 2016-17 may offer some news on recapitalization for government owned banks. This could benefit SBI.

In any case the stock has almost halved from levels of Rs 326 to current levels of Rs 152.

Hopes on infra thrust

Like NCC, the hopes remain that there might be some big bang announcements in Union Budget 2016-17 for infrastructure, which could benefit L&T.

Like SBI, the stock is now available at a near 52-week low.

Higher allocation to agriculture

Kaveri Seeds is a leading player in the supply of cotton seeds.

Announcements of higher allocation to the agriculture sector is almost certain. This may see some positive reaction in the stock of Kaveri Seeds.

Recap for the bank

Like State Bank of India, Punjab National Bank may benefit from higher re-capitalization figures that maybe announced in the Union Budget 2016-17.

A slight bump-up in the stock ahead of the Budget cannot be ruled out.

Allocation for 7th Pay Commission

Higher allocations in the Union Budget 2016 for One Rank One Pension and also 7th Pay Commission may revive sentiments for the company's smaller range of cars.

In any case, the stock has fallen from Rs 606 to Rs 298, which makes it an attractive proposition.