Ahead of the Indian Union Budget, certain stocks and sectors tend to gain attention due to expected policy changes, government spending, and reforms. Here are some key sectors and potential stocks to watch for the pre&post-budget rally in 2025:
1. Infrastructure & Construction
The government often increases capital expenditure on roads, railways, and urban development.
Stocks to watch: L&T, IRCON, PNC Infratech, KNR Constructions, NBCC
2. Capital Goods & Engineering
Increased government spending on industrialization and defense boosts these companies.
Stocks to watch: Siemens, ABB India, Bharat Electronics (BEL), BHEL
3. Banking & Financials
Higher credit growth and PSU bank recapitalization can drive a rally.
Stocks to watch: SBI, HDFC Bank, ICICI Bank, Bank of Baroda
4. Railways
Budget allocations for railway modernization, Vande Bharat trains, and station upgrades benefit these stocks.
Stocks to watch: IRCTC, IRFC, RVNL, Titagarh Rail
5. Power & Renewable Energy
The government’s green energy push supports this sector.
Stocks to watch: NTPC, Adani Green, Tata Power, Suzlon, JSW Energy
6. Defense
Increased defense spending and ‘Make in India’ policies help local defense manufacturers.
Stocks to watch: HAL, Mazagon Dock, Bharat Dynamics, Cochin Shipyard
7. FMCG & Consumer Goods
Tax cuts or rural-focused incentives may boost demand.
Stocks to watch: Hindustan Unilever, ITC, Dabur, Britannia
Zero brokerage: Flattrade
8. Agriculture & Rural-Focused Stocks
Policies related to MSP hikes, subsidies, and rural infrastructure can impact agro-based industries.
Stocks to watch: Escorts Kubota, Mahindra & Mahindra, Coromandel International
9. EV & Auto Sector
Incentives for electric vehicles and auto sector reforms can provide a boost.
Stocks to watch: Tata Motors, Maruti Suzuki, Hero MotoCorp, M&M, Olectra Greentech
Disclaimer:
The information provided above is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Always conduct your own research or consult with a qualified financial advisor before making any investment decisions.