Budget 2020 India: Finance Minister Nirmala Sitharaman will present Union Budget 2020 on February 1. The government is expected to make major announcements in order to give a boost to the economy. According to the market analysts, there are a few stocks that investors must watch on Budget day. “The upcoming budget is going to be very important as the economy is in the struggling phase and the government needs to take bold steps to accelerate growth in the economy where Rural, Infra, and Housing will be the key sectors in which the government may come out with major announcements,” Amit Gupta, Co-founder and CEO, TradingBells said.

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Cement shares: “Cement prices have improved drastically and hence cement stocks have already witnessed good momentum. They can be looked at cautiously during the Budget from a trading perspective. Besides the cement space, L&T, NCC, RVNL would be good plays during the Budget,” Nirali Shah, Senior Stock Analyst, Samco Securities said.

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Also Watch Out for: Coromandel, ITC, Ramco cements, Ultratech and L&T. “Stocks such as Coromandel, ITC, Ramco cements, Ultratech and L&T would remain in focus on the budget day as there are high expectations that the government would announce measures which could benefit as well provide relief for sectors such as agriculture and allied, cement, real estate and infrastructure,” Ajit Mishra, VP – Research, Religare Broking Ltd said.

Infrastructure and Housing shares: PNC Infratech and HDFC can offer better returns to investors in the next one year. For the one year investment horizon, the target price for PNC Infratech is Rs 240, with an 22 per cent upside. While the target price for HDFC is Rs 2,975 with over 23 per cent upside. “These two recommendations from the infra and housing sector where investors can get better returns in the next 1 year,” Amit Gupta, Co-founder and CEO, TradingBells said.

Agri and related shares: On the basis of the technical analysis, the stock recommendations Agri and Agri-related sectors are Kaveri Seed Company and Coromandel International. The brokerage has recommended to buy Kaveri Seed Company (Stop loss- Rs 440, Target price- Rs 530) and Coromandel International (Stop loss- Rs 570, Target price- Rs 680-720). “With flood inflation already on, the Government will also try to curb it by providing and felicitating the availability of all farming necessities. I hope the government incentivises the natural fertilizer procurement to considerably encourage usage and have better soil,” by Pritam Deuskar, Fund Manager, Bonanza Portfolio Ltd said.