40 stocks that beneficiaries from Budget 2020

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The Union Budget 2020 failed to meet the sky-high expectations of Dalal Street. But a series of moves to address issues in the agriculture, infrastructure and financial sectors in a bid to revive growth in the economy are going to create conditions for some businesses to flourish.

Analysts said a handful of stocks are set to draw large benefits from the Budget as the government continues to remain generous with the rural economy with several proposals to increase farm income, which can  ..

In her Budget speech, Finance Minister Nirmala Sitharaman reiterated the government commitment to double farm income by 2022, and proposed to liberalise the agriculture sector.

She unveiled a bundle of schemes, including higher crop insurance coverage, a robust warehouse and cold chain infrastructure to ensure better storage of farm produce, and another scheme called Kisan Rail in PPP mode to facilitate faster movement of perishable goods.

“The government set aside Rs 2.83 lakh crore for agriculture and irrigation sectors, and allocated Rs 3.60 lakh crore for the Jal Jeevan Mission, which aims to ensure piped water supply to all households. 

Analysts expect the schemes to create more demand for pipes used in agriculture, irrigation and for domestic water supply. “These measures are positive for Astral Polytechnik, Finolex, Supreme Industries, Shakti Pipes,” IDBI Capital Market said.
The budgetary allocation for the Ministry of Road Transport and Highways has gone up to Rs 91,823.22 crore from Rs 83,016 crore last financial tear. Budget announcements for roads, railways, economic corridors, solar power generation and accelerated development of highways are expected to boost select infrastructure, construction, capital goods and cement stocks.

With the aim to boost infrastructure financing, the government announced 100 per cent tax exemption on interest, dividend and .. IDBI Capital Markets came up with ‘buy’ ratings on Dilip Buildcon (price target Rs 717), PNC Infratech (TP Rs 259), KNR Construction (TP Rs 324), Ashok Buildcon (TP Rs 198) and Sadbhav Engineering (TP Rs 170).

In the financial space, the Finance Minister increased deposit insurance cover on bank savings by five times to Rs 5 lakh per account from Rs 1 lakh at present. There are hopes that it would help banks to draw public deposits.

The government also proposed a credit guarant ..

Among NBFCs, it gave ‘buy’ ratings to HDFC (TP: Rs 2625), Manappuram Finance (Rs 220) and Muthoot Finance (Rs 710).

For the consumer and retail space, the Finance Minister raised customs duty on footwear by over 1,000 basis points to 35 per cent and on furniture by 500 basis points to 35 per cent.

Analysts expect companies like Trent, Bata, Khadim, Relaxo, Shoppers Stop and Future Lifestyle Fashions to gain from this move.

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