Budget 2023: Why experts are bullish on these auto stocks — explained
2 min read 01 Feb 2023, 09:28 AM ISTBudget 2023 stocks: Economic Survey 2023 has predicted that India's EV market would cross one crore per annum mark by 2030
PremiumBudget 2023 stocks to buy today: As Finance Minister Nirmala Sitharaman is about to present last full budget of the Modi Government, Dalal Street experts and stock market observers are busy scanning important outcome of the Economic Survey 2023 and finding out cue for the Union Budget 2023. According to stock market experts, one of the major outcome of the Economic Survey of India is EV market likely to cross one crore sales mark per annum by 2030.
Stock market experts said that the outcome is an indication that FM Sitharaman may announce some concrete road map for the EV vehicles in India and predicted that auto companies having exposure in EV segment may benefit from this. They said that government is expected to continue its focus on infrastructure sector in today's budget as well and advised positional investors to add Mahindra & Mahindra (M&M) and Tata Motors shares in one's stock portfolio.
Speaking on the reasons for being bullish on auto stocks after the Economic Survey 2023 outcome, Sandeep Pandey, Former Deputy Vice President at HDFC Bank said, "Budget 2023 is expected to focus on infrastructure sector that will trickle into some other sectors like metal, auto, cements, etc. As Economic Survey has predicted EV vehicle market in India to cross one crore mark per year by 2030, I am expecting some concrete announcement from FM Nirmala Sitharaman in regard to road map for shifting towards EVs from diesel and petrol vehicles. Hence, those auto companies who are expected to benefit from such outcome in Economic Survey and expected announcement in budget 2023."
On stocks to buy ahead of union Budget 2023, Sandeep Pandey, who is director at Basav Capital said that one can look at Tata Motors and M&M shares as they may benefit from the rise in EV market in India. However, he maintained that one should take position in such auto stocks for long term.
Echoing with Sandeep Pandey's views, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, "Tata Motors and M&M shares are looking positive on chart pattern for long term investors. One can buy Tata Motors shares at current levels for long term target of ₹550 maintaining stop loss at ₹360 whereas M&M shares can be added to one's stock portfolio for long term target of ₹1550 apiece levels. However, one must maintain stop loss at ₹1010 while taking any position in M&M shares."
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.
