These Stocks are Ex­pected to Gain From Bud­get Moves

The Economic Times - - Smart - Mar­ket In­tel­li­gence

timesin­ter­ ETMar­ The do­mes­tic eq­uity in­dices zoomed past key re­sis­tance lev­els on Wed­nes­day af­ter the Bud­get 2017. Go­ing by the buzz on Dalal Street, here is a list of stocks that most an­a­lysts feel will ben­e­fit in­cre­men­tally from the Bud­get.

“Key ben­e­fi­cia­ries will be play­ers that have a ru­ral pres­ence and SME tar­get base, such as, MFIs — Bharat Fi­nan­cial and SFBs such as Ujji­van, Equitas, Cap­i­tal First and com­pa­nies that have high rur a l p r e s e n c e s u c h a s M& M Fi­nan­cial Ser­vices.”

The Bud­get showed sus­tained gov­ern­ment fo­cus on in­fra­struc­ture devel­op­ment and also bet­ter util­i­sa­tion of agri­cul­ture and ru­ral sub­si­dies, which can act as cat­a­lyst to boost con­sump­tion de­mand. “There were no ma­jor an­nounce­ments for the chem­i­cals sec­tor and for DBT in fer­tilis­ers. We con­tinue to like PI In­dus­tries for a tar­get of ₹ 800. Bayer and Dhanuka, which are not rated are the other plays on the con­tin­u­ous im­prove­ment of the sec­tor,” Am­bit Cap­i­tal said in a re­port.

Edel­weiss Se­cu­ri­ties has up­graded shares of ITC to ‘buy’ from ‘hold’ on the gov­ern­ment’s soft stance on ex­cise duty hikes in cig­a­rettes for two con­sec­u­tive Budgets. HUL ben­e­fits di­rectly from Unilever’s global or re­gional pro­cure­ment and ITC has a very strong net­work for di­rect pro­cure­ment from farm­ers.

The in­creased al­lo­ca­tion to ru­ral low-cost hous­ing to ₹ 23,000 crore from ₹ 16,000 crore in FY17 is likely to drive a 2% in­crease in ce­ment de­mand, Am­bit Cap­i­tal said.

“We pre­fer re­gional, cost-ef­fi­cient play­ers like Dalmia Bharat and Ori­ent given the in­ex­pen­sive val­u­a­tion,” said the Am­bit re­port. HIGHS & LOWS

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