The Union Budget 2016 is scheduled to be delivered by Finance Minister Arun Jaitley on Feb 29. Here are select stocks that could benefit from the Union Budget 2016.

Larsen and Toubro

The stock of Larsen and Toubro has not been not been doing great and last week crashed to a new 52-week low. However, it recovered sharply on Monday in line with the markets. The stock has been badly hit on account of slowing order book and also on worries of contracts from the Middle East, which has been slowing down.

Addition of smart cities and renewed focus on power and road development, should benefit L&T in the next few years. The stock has already moved up by 8 per cent on Monday and we may see a further rally going ahead.

IRB Infrastructure

The company is one of the top players in the roads sector in India. IRB and its subsidiaries have constructed, maintained and are operating around 9,295 lane kms of road length so far and one of the major road developers in the country.

Like other companies the stock has seen a huge downside owing to selling pressure in the counter. However, the company is likely to benefit from a huge outlay for the roads sector in the coming budget. Like L&T, the stock of IRB remains a good bet.

State Bank of India

The shares of State Bank of India have been hammered out of shape, as worries over non performing assets, continue to trouble the banking sector in India. The stock last week hit a 52-week low of Rs 148 on the National Stock Exchange.

There are hopes that the Union Budget 2016 would announce some measures to revive PSU banks and also capitalize them.

As we write there are also reports that the government is looking to rope in industry stalwarts for the proposed Bank Board Bureau that will look into appointments of directors and non executive chairmen of PSB Banks.

There are also hopes that economic turnaround may see some of the banks making a turnaround in the coming years. This could make these stocks attractive from a 2-year perspective.

Conclusion

The Union Budget 2016 may see some stellar reforms and is eagerly awaited by investors. Stock prices in any case have dipped making some of these shares attractive from a long term perspective.

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