Last Updated on Jan 27, 2022 by Aradhana Gotur
As per Axis Securities, building materials, infrastructure, and consumer durables will be in the spotlight for the upcoming Budget 2022. The brokerage house says that the affordable housing segment may see more government aid in the form of schemes. This will, in turn, spur demand in the household durables segments.
A note from the brokerage stated, “Focus on the infrastructure development activities such as roads and construction will continue enabling infrastructure companies and building materials segments such as cement, tiles and others to post robust performance.”
Axis Securities is positive on stocks including Polycab India, Maruti Suzuki, SBI Life, Canfin Homes, Minda Corp, KNR Constructions, Dalmia Bharat, HG Infra, and Welspun India. On the other hand, it has a negative outlook on stocks, including ITC, VST Industries, and Godfrey Phillip.
The note also said, ”The impact of the Union Budget on the equity market has reduced notably over the past few years with the government undertaking most of the reforms outside the purview of the Budget. Nonetheless, market participants continue to view the budget as a catalyst stimulating growth.”
As per Axis Securities, the fiscal situation for FY 2022 appears manageable given buoyant tax revenue collection in the last few months. To add to this, elections in five states have lined up in the calendar year. Hence, the brokerage house expects Union Budget 2022-23 to be growth-oriented.
Axis Securities also stated, “The consequent higher government spending on infrastructure development will help the economy gain further momentum. The efforts are expected to continue around Defense, Railways, and Road Infra development. We believe policy reforms such as Atmanirbhar Bharat and the PLI scheme are likely to continue in FY23 and receive further impetus.”