Union Budget 2025: StoxBox Highlights 12 Stocks Across Sectors Poised for Gains
16th Jan 2025
Budget 2025 Expectations and Investor Outlook
The country eagerly awaits the Union Budget for FY 2026, set to be unveiled by Union Finance Minister Nirmala Sitharaman of the Modi 3.0 government on February 1, 2025, at 11:00 IST. Given the recent trends in the domestic and macroeconomic landscape, investors are considering which sectors might experience growth and could be attractive for investment based on the announcements made by the Finance Minister.
According to Manish Chowdhury, Head of Research at StoxBox, specific sectors such as Real Estate, Cement, Railways, and Road/Construction are under scrutiny as per the pre-budget expectations he outlined.
Sectors and Stocks in Focus
Chowdhury is optimistic that the forthcoming budget will introduce initiatives, particularly streamlined regulations and certain incentives, to entice foreign investments into the commercial real estate market. Additionally, it is expected that the government's allocation for infrastructure projects will rise, with capital expenditure projected to increase by about 10-12% from ₹11.11 lakh crores in the FY25 budget. Manish Chowdhury foresees an enhanced budget for the railway sector, anticipating a 15-18% rise in funding for this area.
From a budget perspective, Chowdhury remains positive across the real estate value chain, with Oberoi Realty, PNB Housing, and AAVAS Financiers identified as top picks. In the cement sector, Ultratech, Ambuja, and ACC are highlighted as key choices. For the railway industry, RVNL, BEML, and IRFC are noted as top picks, while in the road/construction sector, L&T, KNR Construction, and Ashoka Buildcon are identified as the top choices.
Potential Budget Initiatives and Impact
Chowdhury suggests that to improve railway infrastructure, the upcoming budget is expected to feature new procurements for rolling stock, freight coaches, and wheels. Furthermore, the government's initiative to promote Make in India may generate fresh opportunities for manufacturers of railway equipment.
For the road/construction sector, the government is expected to raise the budget allocation for the Ministry of Road Transport and Highways (MoRTH) by 5-6%. This increase is anticipated to encourage private investments in highway projects, especially those awarded under the build-operate-transfer (BoT) toll model, with around 20-25% of projects likely to use this model. Additionally, the allocation will assist MoRTH in speeding up highway construction and alleviating the high debt burdens faced by the National Highways Authority of India (NHAI).
The country eagerly awaits the Union Budget for FY 2026, set to be unveiled by Union Finance Minister Nirmala Sitharaman of the Modi 3.0 government on February 1, 2025, at 11:00 IST. Given the recent trends in the domestic and macroeconomic landscape, investors are considering which sectors might experience growth and could be attractive for investment based on the announcements made by the Finance Minister.
According to Manish Chowdhury, Head of Research at StoxBox, specific sectors such as Real Estate, Cement, Railways, and Road/Construction are under scrutiny as per the pre-budget expectations he outlined.
Sectors and Stocks in Focus
Chowdhury is optimistic that the forthcoming budget will introduce initiatives, particularly streamlined regulations and certain incentives, to entice foreign investments into the commercial real estate market. Additionally, it is expected that the government's allocation for infrastructure projects will rise, with capital expenditure projected to increase by about 10-12% from ₹11.11 lakh crores in the FY25 budget. Manish Chowdhury foresees an enhanced budget for the railway sector, anticipating a 15-18% rise in funding for this area.
From a budget perspective, Chowdhury remains positive across the real estate value chain, with Oberoi Realty, PNB Housing, and AAVAS Financiers identified as top picks. In the cement sector, Ultratech, Ambuja, and ACC are highlighted as key choices. For the railway industry, RVNL, BEML, and IRFC are noted as top picks, while in the road/construction sector, L&T, KNR Construction, and Ashoka Buildcon are identified as the top choices.
Potential Budget Initiatives and Impact
Chowdhury suggests that to improve railway infrastructure, the upcoming budget is expected to feature new procurements for rolling stock, freight coaches, and wheels. Furthermore, the government's initiative to promote Make in India may generate fresh opportunities for manufacturers of railway equipment.
For the road/construction sector, the government is expected to raise the budget allocation for the Ministry of Road Transport and Highways (MoRTH) by 5-6%. This increase is anticipated to encourage private investments in highway projects, especially those awarded under the build-operate-transfer (BoT) toll model, with around 20-25% of projects likely to use this model. Additionally, the allocation will assist MoRTH in speeding up highway construction and alleviating the high debt burdens faced by the National Highways Authority of India (NHAI).