Finance Minister Nirmala Sitharaman delivered a pragmatic growth-oriented Budget 2022 to boost growth in Asia’s third-largest economy.
The highlight of Budget 2022 was increase in the capital expenditure outlay by around 35 per cent to Rs 7.5 lakh crore in the financial year 2022-23, and FY23 effective CAPEX is seen at Rs 10.7 lakh crore. In comparison, the CAPEX target in FY22 was set at Rs 5.5 lakh crore.
Higher capital expenditure by the government will put many economy-related as well as consumption sectors in focus, suggest experts. The government announced critical investments and policies for infrastructure development via railways, metro systems, highways primarily through the PM Gati Shakti initiative.
“This is a Capex boosting budget, which is prudent in other expenditures as the FM looks to contain the fiscal spending while enhancing growth. Therefore, the FM has increased the Capex investment target by 35% to 7.5 lac crore,” Sonam Srivastava, Founder, Wright Research, said.
“Railway and Logistics-linked stocks, Capital Goods, Cement, and Real Estate will gain with this,” she said. FM has focused on Fintech instead of Banking, Electric Vehicles, and Edtech instead of Education, which has brought back focus to the new-age innovative sectors, added Srivastava.
Indian market gave a thumbs up to Budget 2022 as benchmark indices rallied more than 1 per cent on Budget Day. Most sectors closed the day in the green barring oil & gas, auto, and telecom stocks.
The government presented a progressive budget that laid down the foundation of ensuring long term economic growth. It continued with its policy of fiscal prudence and pegged FY22 fiscal deficit at 6.9% while setting a target of 6.4% for FY23 which got a thumbs up from market participants.
The action on D-Street is likely to remain volatile and the movement will be stock specific, suggest experts. Roop Bhootra, CEO, Investment Services, Anand Rathi Shares, and Stock Brokers said Capital Goods, Infrastructure, Technology, Digital, Defence and logistics stocks to outperform.
Ashis Sarangi, SEBI registered RIA, Pickright Technologies highlighted that ahead of the Budget 2022 they increased exposure to infra, banks, PSU banks, and power via L&T, IRB, PSU Bank BEES, ICICI Bank, and HDFC Bank.
We have collated a list of top 20 stock ideas from experts that investors can buy post Budget 2022:
Expert – Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd