Are you looking to invest in Budget-sensitive stocks before the Union Budget? If so, then this blog post is for you! Here, we will be providing you with an overview of the 10 best Budget-sensitive stocks that you should buy before the Union Budget. We will be focusing on stocks from the Railways, infrastructure, defence, divestment and renewables segments, which are widely tracked ahead of the Budget. So stay tuned to learn more about these stocks and how you can use them to your advantage!
1) IRCTC
The Indian Railway Catering and Tourism Corporation (IRCTC) is a stock market heavyweight, so it goes without saying that it is one of the most budget-sensitive stocks.
It’s a major player in India’s travel and tourism industry, providing services such as ticketing, catering, and tourism packages.
As the government focuses on developing the railway sector in the upcoming budget, IRCTC stocks could see an upswing in the markets.
This could be a great opportunity for investors to capitalize on the potential of this stock before the Union Budget.
2) Larsen & Toubro
Larsen & Toubro (L&T) is one of the biggest stocks in the Indian market, and is widely tracked ahead of the Budget. It has interests in various sectors including engineering, construction, manufacturing and information technology.
With infrastructure and defence-related spending likely to see a bump during the Budget, investors are likely to have their eyes on L&T stocks as it is one of the biggest players in these areas.
The stock’s outlook will be closely watched for any indications of where the government may be planning to spend its money. With a strong balance sheet and a diverse presence in many segments, L&T is well-positioned to benefit from an uptick in government spending.
As such, it could be an attractive investment opportunity for those looking to benefit from potential gains in the stocks market.
3) BHEL
BHEL is one of the most important stocks in the market ahead of the Union Budget. The company has a strong presence in the energy and power generation sectors, and is widely tracked by investors looking for budget-sensitive stocks.
It is involved in the engineering, manufacture, construction, commissioning and servicing of a wide range of products and services for the core sectors of the economy, including power, transmission, industry, transportation (including rail transportation), renewable energy and oil & gas.
BHEL also has significant presence in renewable energy sector, with projects like solar thermal, photovoltaic systems and biomass power plants.
In addition to its main products, BHEL also provides after-sales service, engineering services and turnkey contracts. BHEL’s stock is likely to be in focus as the Union Budget approaches, with potential upside in the stock price.
4) NTPC
NTPC is a major stock in the Indian stocks market, and it’s likely to gain some attention in the run up to the Union Budget. This public sector behemoth is India’s largest electricity generation company, accounting for over 25% of the total power generated in India.
It is also the sixth largest thermal power producer in the world. NTPC’s performance has been consistent, with its profits increasing over the years.
It is one of the few stocks which have consistently paid dividends and has very low debt on its balance sheet. NTPC’s stock has gained more than 30% over the last year, and it could be one of the stocks to watch out for ahead of the Budget.
5) NMDC
NMDC is one of the most important stocks from the metals and mining segment, and it is often considered as a bellwether stock for the entire sector. This state-owned company has a dominant presence in iron ore mining, and it is the country’s largest iron ore producer.
The stock has been volatile in the past few weeks, but it is still up around 16% year-to-date. This has made it one of the most attractive stocks in the market, and many investors are considering this stock ahead of the Union Budget.
NMDC has also recently announced that it plans to increase its production capacity to 85 million tonnes by 2022. This could be a major boon for the company, and could result in a surge in its stock price.
Investors should consider adding this stock to their portfolios if they are looking for long-term gains in the stocks market.
6) Coal India
Coal India is one of the most important stocks to watch ahead of the Union Budget. It is India’s largest coal producer, and its stock has been in high demand recently due to the government’s divestment plans.
Coal India is a great option for investors who are looking for budget-sensitive stocks as its share price could increase significantly depending on the government’s decision on divestment. The company is well established and enjoys the backing of the government.
Its presence in the Indian energy sector ensures that it will be highly sought-after by investors. Additionally, Coal India has been performing well in the stocks market and is likely to benefit from a good Budget announcement.
7) Jindal Steel & Power
Jindal Steel & Power (JSPL) is one of the most promising stocks on the market ahead of the Union Budget. The company has a major presence in sectors such as steel, power, mining and construction. JSPL is known to have a strong balance sheet with no long-term debt and a healthy cash position.
With its strong operational performance, the stock has seen an impressive rally in the past few months.
Investors can also benefit from the government’s recent infrastructure push and increase in renewable energy initiatives.
The company is likely to benefit from increased demand for its products and services across these sectors, providing investors with a good opportunity to enter the stock at this time.
With its relatively low valuations and expected growth, JSPL is an attractive option for investors looking to tap into the stocks market.
8) Bharat Heavy Electricals
Bharat Heavy Electricals Limited (BHEL) is one of the leading stocks from the Indian market, with a strong presence in the infrastructure, defence and renewables segments. It is also one of the most watched stocks ahead of the Union Budget.
As a public sector undertaking (PSU), BHEL has played an important role in India’s development over the years, providing high-quality products and services to various industries.
BHEL’s stock has gained traction in recent months due to its strong order book and robust financials.
The company reported a strong quarter ending December 2020 with a revenue of Rs. 8,471 crore, representing a growth of 20% YoY. In addition, the company’s profits before tax grew by 28% YoY during the same period.
The company’s stock price has also gained momentum in the past year and is currently trading at Rs 43 per share, which represents an upside potential of 7%. This has made it an attractive stock for investors looking for an investment opportunity in the stocks market ahead of the Union Budget.
With strong fundamentals and a strong order book, BHEL is a stock worth considering for investors seeking to benefit from the upcoming budget.
9) Power Grid Corporation
Power Grid Corporation is an Indian public sector enterprise that specializes in transmission of power from sources to the distribution networks. It operates in the electricity generation and transmission sector in India, as well as in the global market.
This company is also involved in engineering and consultancy services related to the power sector.
Power Grid Corporation is a key player in the Indian stocks market and is often seen as a budget-sensitive stock to buy before the Union Budget. The company has a strong presence in the electricity sector in India and enjoys strong growth prospects.
It also has a vast network of projects across the country. With its strong presence in the transmission sector, it is expected that Power Grid Corporation could benefit from the focus on infrastructure development by the government.
Investors looking for budget-sensitive stocks should consider Power Grid Corporation for potential gains ahead of the Union Budget.
10) Hindustan Aeronautics
Hindustan Aeronautics Limited (HAL) is a leading stock in the Indian defence sector. HAL manufactures and supplies a range of aircraft, helicopters, engine components and other defence equipment.
The stock may be of interest to investors who are looking to benefit from the defence segment in the Union Budget. Ahead of the budget announcement, HAL stocks have been rising steadily, with the stock price crossing Rs.1,000 on the BSE.
The anticipation is that the government may allocate more funds for defence-related spending, which may further boost the stock market’s interest in HAL.