Infra, BFSI: Key themes and stocks to focus ahead of the Budget

The brokerage expects the overall capital expenditure for the infra segment in the Budget to increase by 20% year-on-year (YoY). The focus will be on the development activities such as roads and construction, which will be positive for cement, durables, and other infra-related stocks.

Axis Securities is positive on

, , RITES, KEC International, and to do well among infra stocks. These stocks have given returns in the range of 2.35-12.63% so far this year on a year-to-date (YTD) basis. has offered negative 1.52% returns this year.

“With the heightened government focus on developing the overall infrastructure of the country and particularly highways, railways, urban infra companies operating in these segments have massive opportunities,” the brokerage said.

Among cement stocks, Ambuja Cement (-0.97% YTD), (4.82% YTD), and Dalmia Bharat (0.77% YTD) are some of the companies that will see a lot of churn at the bourses both pre and post Budget.

“Higher government focus on building infrastructure including roads, airports, ports, bridges and other hard structures will increase overall cement demand,” Axis Securities said.

The banking and financial services industry will benefit from likely support from the government to MSMEs. This would possibly involve an extension of the ECLGS scheme to keep up the growth momentum.Further, for the consumer durables segment, the industry expects the Budget to stimulate consumption and improve consumer demand. Increasing the outlay of existing PLI Schemes and extending it to more components may also benefit consumer goods players. , , , and are stocks that will be in focus, according to Axis Securities.

The brokerage is also positive on the auto and ancillaries segment with the government’s key focus will be to boost rural consumption, which would support discretionary spending and thereby benefit rural-focused two-wheelers and entry-level four-wheeler original equipment manufacturers.

In the retail segment, raising excise duty or NCCD duty on cigarettes and tobacco products will be negative for companies like ITC,

Phillip, and .

With the Budget being the last one before the general elections, some midcap opportunities include

, , , and , among others.

With data inputs from Ritesh Presswala

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)