Budget 2023 may benefit power, infra and pharma shares; check IIFL Securities’ top 10 stock picks-GROWMUDRA

Budget 2023 may benefit power, infra and pharma shares; check IIFL Securities’ top 10 stock picks

24 Jan , 2023 By : Monika Singh

Union Budget 2023 is just over a week away, and since this is the last full-year Budget before General Elections in 2024, it is expected to be a growth-oriented one with a primary focus on job creation, investment-driven growth, and infrastructure development. According to analysts at IIFL Securities, Finance Minister Sitharaman may announce more subsidies to customers to boost EV production which may lead to an increase in demand for batteries. Hence, Exide Industries is among top picks. The power sector may also be benefited from Budget announcements, and the government is expected to increase the tax on cigarettes, which make NTPC and ITC stocks attractive from a near-term perspective.

Duty on luxury watches, ornaments, jewellery is likely to benefit Titan, while subsidy and development of the agri sector may directly impact Chambal Fertilizers stock. The central government has been pushing the use of technology in the agri sector, and in the upcoming Budget, it is expected to announce subsidies and planning on technology usage like usage of drones, usage of machinery to increase agri production, which may boost Godrej agrovet stock.

Analysts at IIFL Securities also believe that in this year’s Budget, the government may announce a policy framework on the development of railways which may directly impact RVNL stock. Since infrastructure development in 2 and 3-tier cities is likely to be a key focus area in the Union Budget, an increase in demand for aluminium is likely going forward, which may positively impact NALCO stock. The real estate sector is also expected to get a major push with the Smart Cities Mission, and DLF stock may rally as a result of the same. Pharma stocks such as Cipla are also in focus as Budget 2023 may contain good policy announcements for the sector.