Business News/ Markets / Stock Markets/  Budget 2023: Infra stocks to watch out for

Budget stocks 2023: Ahead of the union budget presentation, Dalal Street is buzzing with speculations that Finance Minister Nirmala Sitharaman would present a budget that will have a special focus on infrastructure. According to stock market experts, this would be the last full fledged budget of the incumbent central government whereas there would be 5 state elections falling in the year 2023. So, both central and state government will focus on the infrastructure sector that has the capacity to generate mass job opportunities within the given time they have in their hands.

Stock market experts said that due to expected special focus on the infrastructure sector and its allied industries, order book and margins of some listed infra sector companies are expected to improve in next 3-4 quarters. They said that after the budget proposals, things would be crystal clear but a smart investor always sees the writing on the wall. They advised positional investors to look at stocks like NCC, KNR Constructions, Cummins India, L&T, etc. stocks to buy ahead of budget 2023.

On why one should buy infra stocks ahead of the union budget 2023, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "The upcoming union budget is going to be the last full budget of the incumbent central government. Looking at its past budgets, the government is expected to present a people-centric budget where special focus would be given to the job creation because the opposition is going hard on the Modi government on job creation front. AS infrastructure is one of the highest job creator sector after agriculture, it is expected to get special focus in upcoming budget."

Avinash Gorakshkar went on to add that there would be 5 state elections falling this year as well. So, those states are also going to give special attention to job creation and for them also, infra sector would in focus. So, in next one and half years, infrastructure companies are going to remain in special focus of both state and central government. This would lead to improve in the order book and margins of some listed infra companies. So, it's better to buy infra stocks ahead of the budget presentation for medium to long term or say for 9 months to 12 months.

Advising positional investors to buy infra stocks even if their perspective is for short term, Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal said, "The upcoming union budget is going to focus on the infrastructure and its allied sectors as the government would like to showcase its achievements ahead of the fast approaching Lok Sabha elections next year. 

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Therefore, developmental projects and job creation would be in focus and hence I strongly believe that there would be some big announcement coming in from the Finance Minister Nirmala Sitharaman that is going to fuel infra stocks after the presentation of budget 2023."

5 Budget stocks to buy in 2023

Chandan Taparia of Motilal Oswal went on to add that one should review one's position after the union budget and decide whether the infra stockholding should be extended further or it's opportune to book profit.

Asked about the budget stocks to buy in India, Chandan Taparia of Motilal Oswal recommended five stocks to buy ahead of Indian budget 2023 and those five stocks are NCC, Cummins India, Siemens, KNR Constructions and L&T.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Updated: 16 Jan 2023, 11:04 AM IST
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