According to some analysts, there are few stocks that investors must buy that now Union Budget 2020 is over.
Indian share markets crashed on Budget day as it failed to meet the expectations of the investors. Sensex tumbled around 1,000 points and Nifty also closed lower on the Budget day. According to some analysts, there are few stocks that investors must buy that now Union Budget 2020 is over. However, reversing all Budget day losses, on Tuesday, S&P BSE Sensex was trading nearly 900 points or 2.23 per cent higher at 40,760.72 points while the broader Nifty 50 index was ruling at 11,975 points, up 267 points or 2.29 per cent.
For instance, Rs 2.83 trillion have been allocated to Agriculture and Irrigation, and Rs 3.6 trillion for Jal Jeevan Mission which aims to supply water to all households through pipes. “It will lead to higher demand and consumption of pipes used in Agriculture and Irrigation as well as carrying potable water for households,” IDBI Capital in a research note said. According to the brokerage company, this announcement is positive for pipe manufacturers such as Astral Polytechnik, Finolex, Supreme Industries, Shakti pipes etc.
1. Hindustan Unilever – For Swachh Bharat Mission 2020-21, the government proposed a total allocation of Rs 12,300 crore. “Allotment of Rs 12,300 crore for ‘Swachh Bharat Mission’ for 2020-21 and reduction in individual income tax rate (higher disposable income) is likely to be beneficial for Hindustan Unilever going forward,” Stewart & Mackertich said in a research note. The brokerage has given a ‘buy’ rating to the stock with a target price of Rs 2,489. HUL share price today fell 0.93% to Rs 2158.30 apiece on BSE in Tuesday’s session.
2. Dixon Technologies – The government announced that it will introduce a new scheme to encourage domestic manufacturing of mobile phones, electronic equipment and semiconductor packaging in order to make India a part of the global manufacturing chain and boost employment opportunities. “The Government’s plan to encourage the manufacture of mobile phones, electronic equipment, and semiconductor manufacturing as well as medical devices is likely to augur well for the Dixon Technologies going forward,” Stewart & Mackertich said in a research note. The brokerage has set a target price of Rs 5,500 for Dixon Technologies. Dixon Technologies was trading 0.15 per cent lower at Rs 4,747.65 apiece on BSE.
3. Footwear companies – Finance Minister Nirmala Nitharaman proposed to raise customs duty on imported footwear. In the Budget presentation, the customs duty on footwear has been increased from 25 per cent to 35 per cent. Along with this, the customs duty on the raw materials has been raised to 20 per cent from 15 per cent earlier, in order to protect labour-intensive MSME sectors. Customs duty hike was announced on footwear to promote ‘Make in India’. This measure would be positive for Trent, BATA, Khadim, Relaxo, Shoppers Stop, according to IDBI Capital. Bata India shares hit a 52-week high of Rs 1882.30 on BSE in today’s trade.