PFC, REC, RVNL among 97 stocks in focus ahead of Union Budget by BofA Securities

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     Stocks in Focus
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    Stocks in Focus

    FY25 budget announcement is scheduled on July 23rd. One of the key focuses will be on the government’s allocation for excess dividend receipts from the RBI and CPSEs.

    Global brokerage firm BofA Securities expects $6.6 billion worth of allocations to stimulate state capex, $9.6 billion towards populism to boost consumption and no change to FY25 fiscal deficit target at 5.1%.

    Going into the budget, the global brokerage firm expects staples & autos and capex facing sectors such as mortgage/power financiers, industrials, cement, hospitals and metals sector to benefit, while they remain cautious on real estate, brokerages and depositories.

    Here is a list of sector and stocks by BofA Securities that are exposed to the budget theme:

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    Power and Housing Financiers
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    Power and Housing Financiers

    ​Power and housing finance companies in India have shown robust performance, driven by strong demand. Significant capital inflows and improved asset quality have contributed to their impressive growth.

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    Industrials
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    Industrials

    The sector has demonstrated a very strong performance, bolstered by robust infrastructure development and increased domestic demand.

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    Cement
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    Cement

    India's cement sector has experienced significant growth, driven by booming infrastructure projects and urbanization. Major players have expanded production capacities to meet the rising demand across the country.

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    Metals and Mining
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    Metals and Mining

    India's metal and mining sector has seen robust growth, fueled by increased demand from construction and manufacturing industries. Companies in this sector have even benefited from higher commodity prices.

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    Staples
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    Staples

    India's staples sector has shown steady growth, driven by consistent demand for essential goods and expanding retail networks. Leading companies have leveraged strong distribution channels and brand loyalty to maintain their market positions and achieve sustained performance.

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    Autos (2W & CVs)
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    Autos (2W & CVs)

    India's two-wheeler and commercial vehicle auto segment has experienced significant growth, propelled by rising consumer demand and increased infrastructure development. Key players, like Bajaj Auto, have introduced innovative models and expanded their reach, contributing to the sector's robust performance.

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    Financial Intermediaries
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    Financial Intermediaries

    Supported by increasing market participation and digital transformation, financial intermediaries have witnessed impressive growth, capitalizing on technological advancements and regulatory reforms to enhance their services and expand their client base.

    With inputs from Ritesh Presswala

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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