Top 10 stock picks by Axis Securities after Budget 2022
Premium- The key sectors expected to benefit from capex are cement, infrastructure, metals, capital goods, as per Axis Securities
Domestic brokerage and research firm Axis Securities believes that the Union Budget 2022-23 was largely neutral for most other sectors. Its budget top stock picks include Federal Bank, City Union Bank, CanFin homes, Polycab, Ambuja Cement, KNR Construction, HG Infra, Asian Paints and ABFRL, Hindalco.
“The FY23 Union Budget focused on the Gati Shakti Mission through which the government plans to provide significant thrust to the infrastructure development. This includes impetus to the Roads, Railways, Airways, Ports, Mass Transports, Waterways, and Logistics Infra development," the brokerage note stated.
The government increased the headline budgeted Capex by 35%. The key sectors expected to benefit from capex, as per Axis Securities, are cement, infrastructure companies, metals, and capital Goods. The cement sector should see improving traction as budgetary support will come from infrastructure spending as well as housing spending, added.
The government has further increased budgetary allocation to the vaccination program which will help companies such as Serum Institute, Dr. Reddy’s, Gland Pharma, and others. Moreover, there is increased support for the Ayushman Bharat program which will help Healthcare companies, moving forward, the brokerage note said.
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The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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