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Finance Minister Nirmala Sitharaman in her Budget 2022 speech announced government’s commitment to boost capital expenditure and its spending plans for the infrastructure sector to improve economic activity, thereby, generating more employment.
The government is planning to spend Rs 7.5 lakh crore as part of its capital expenditure plan in FY23. This includes construction of houses, roads and ports. Data centres will be given infrastructure status. Let’s take a look at the sectors and companies that are likely to benefit from Budget 2022.
Housing
The government plans to spend Rs 48,000 crore for affordable housing scheme in FY23. It aims to construct 80 lakh houses in rural and urban India. This is likely to have a positive effect on realty, cement, steel, paint companies. It will also benefit financial services companies who are active in the housing finance space. Below, we have given a list of stocks belonging to various industries under the housing sector.
Realty Companies: Godrej Properties,Oberoi Realty, Prestige Estates Projects, Brigade Enterprises, DB Realty, Sobha, Sunteck Realty, Indiabulls Real Estate, Shriram Properties, Purvankara, Ashiana Housing, etc.
Cement Companies: UltraTech Cement,Shree Cements, ACC, Ambuja,Dalmia Bharat, JK Cement, Ramco Cements, Orient Cements, Birla Corp and India Cements
Paint Companies: Asian Paints, Berger Paints, Kansai Nerolac and Indigo Paints.
Steel Companies: JSW Steel, Tata Steel, SAIL, Jindal Stee, APL Apollo Tubes, Ratnamani Metals, LLoyds Metals, Welspun Corp, Tata Metaliks, etc.
Housing Finance Companies: HDFC, SBI, LIC Hosuing Finance, Aptus Value Hosuing Finance, Indiabulls Housing Finance, Can Fin homes and PNB Housing Finance.
Roads and Highways
The government has proposed to add 25,000 kilometres of new highways to in FY23and it has allocated of Rs Rs 20,000 crore.
Stocks to watch: Larsen & Toubro, IRB Infrastructure Developers, PNC Infratech, Dilip Buildcon Ltd, Ashok Buildcon, Jaypee Infratech and Gayatri Highways.
Railways
The Finance Minister said that Railways will develop efficient logistics for small farmers and enterprises. She said one station, one product to help supply chain of local products.
In addition, 400 new Vande Bharat trains will be developed and manufactured during the next three years.
Further, 100 cargo terminals for multimodal logistics facilities will also be developed during the next three years.
Stocks to watch: IRCTC, BEML, IRCON, Siemens, Indian Railway Finance, Rail Vikas Nigam, Texmaco Rail and Titagarh Wagons
Some of the logistic stocks are VRL Logistics, GATI, Container Corp of India, Blue Dart, Allcargo, Transport Corp of India, Mahindra Logistics.
Telecom
The governments plans to conduct 5G spectrum auctions in FY23 to facilitate roll-out of next-gen mobile services. A scheme for design-led manufacturing will be launched to build an ecosystem for 5G as part of the Production Linked Incentive (PLI) scheme.
Stocks to watch: Reliance Jio, Airtel, Vodafone Idea, TTML, Indus Towers, Tejas Networks, HFCL, ITI and Suyog Telematics.
Renewable Energy and Eelctric Vehicles
The government is committed to reduce greenhouse gas emissions and dependence on fossil fuels. A battery swapping policy for electric vehicles will be implemented. Sovereign Green Bonds will be issued in FY23 for funding green infrastructure.
Stocks to watch: Tata Power, Adani Green, NTPC, Tata Motors, Mahindra & Mahindra, Hero Motocorp, Bajaj Auto, TVS Motors, Minda Corporation, Gabriel India, Dixon Technologies, Exide indutries, Amara Raja Batteries and Motherson Sumi.