7 Stocks That Could Benefit From Union Budget 2023 As Highlighted By Sharekhan

Here are some stocks that could be key beneficiaries of the various project outlays. These are based on the research report of Sharekhan. Though Sharekhan has highlighted a few more, we are taking only 7 beneficiaries.

Infrastructure stocks could benefit from Union Budget

According to Sharekhan the key beneficiaries of the Union Budget among infrastructure stocks would be KNR Constructions, PNC Infratech, among others.

"Effective capital investment including state and off balance sheet has been increased to Rs. 13.7 lakh crore from Rs. 10.5 lakh crore. Continuation of 50-year interest free loan to state governments to incentivise infrastructure investment with increased outlay of Rs. 1.3 lakh crore," the brokerage has said.

Pradhan Mantri Gram Sadak Yojana outlay and Jeevan Jal outlay to help

Pradhan Mantri Gram Sadak Yojana outlay for FY2024 kept flat at Rs. 19,000 crore compared to FY23BE and FY23RE. Jal Jeevan Mission outlay for FY2024 increased by 17%/27% versus FY23BE/ FYRE at Rs. 70,000 crore.

"Outlay towards MoRTH has been increased by 36%/25% versus FY23BE/ FY23RE at Rs. 2,70,435 crore. Outlay towards NHAI has been increased by 21%/14% versus FY23BE/FY23RE at Rs. 1,62,207 crore," Sharekhan has noted. Companies like PNC Infratech and KNR constructions would be the beneficiaries among many other players.

Vehicles to benefit from budget outlay

Increased custom duty on imported vehicles and exempted custom duty on specific machineries required for manufacturing of lithium ion cells would help some players. According to Sharekhan, the key beneficiaries of such a move would help companies like Maruti, M&M, Tata Motors, Exide and Amara Raja.

Budget supports ongoing economic recovery

Meanwhile, according to Sharekhan, the Union Budget 2023-24 continues to underline the government's commitment to support the ongoing economic recovery with robust budgetary allocations towards capital expenditure and a focus on reviving the rural economy. "The government continued to avoid the pitfalls and kept a balanced approach between growth and fiscal prudence. Further, choosing the economic growth agenda without being excessively populist ahead of the general elections next year essentially bodes well from the capital market's perspective. Additionally, the Budget continued to target unleashing animal spirits in the private sector to ensure a multi-year economic upcycle and job creation," the brokerage has said.

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.