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Infrastructure, building materials and consumer Durables will be in focus for the upcoming Budget 2022, as per brokerage house Axis Securities. Real estate is another key sector that needs a further push and the affordable housing segment may see more government schemes. All these will help a wide range of household durables segments, it added.

“Focus on the infrastructure development activities such as roads and construction will continue enabling infrastructure companies and building materials segments such as cement, tiles and others to post robust performance," the brokerage note stated.

Axis Securities' positive budget stock plays includes Maruti Suzuki, Minda Corp, Polycab India, Canfin Homes, SBI Life, KNR Constructions, HG infa, Welspun India, and Dalmia Bharat. On the other hand, its negative plays include ITC, Godfrey Phillip, and VST Industries.

"The impact of the Union budget on the equity market has reduced notably over the past few years with the government undertaking most of the reforms outside the purview of the Budget. Nonetheless, market participants continue to view the budget as a catalyst stimulating growth," said the note.

The fiscal situation for FY22 appears manageable in light of a positive surprise seen in the tax revenue with buoyant collection in the last few months. At this juncture, the Union Budget 2022-23 is expected to be growth-oriented given the state election lined up in over 5 states in 2022, the brokerage highlighted. 

"The consequent higher government spending on infrastructure development will help the economy gain further growth momentum. The efforts are expected to continue around Defense, Railways, and Road Infra development. We believe policy reforms such as Atmanirbhar Bharat and the PLI scheme are likely to continue in FY23 and receive further impetus," Axis Securities added.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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