Indian Union Budget 2021-22: With just a week left for Union Budget 2021, Indian share markets are witnessing extreme volatility. In the week gone by, BSE Sensex went past the crucial 50,000 and Nifty 50 crossed the psychological level of 14,750. Benchmark indices ended the week on a flat note with a negative bias. Analysts expect this high volatility to continue for next couple weeks. Ahead of Budget, market watchers advise a few sectors and stocks which may remain in focus during this week. Earlier on Saturday, Finance Minister Nirmala Sitharaman, Minister of State for Finance Anurag Thakur and senior officials of the finance ministry participated in the Halwa Ceremony, marking the beginning of compilation of budget documents. On the back of COVID-19, this year budget documents will be distributed electronically to the Members of Parliament (MPs). Here are a few top sectors and stock picks for ahead of Budget 2021:
Sanjiv Bhasin, Director, IIFL Wealth
Sanjiv Bhasin believes that stocks of Divis Laboratories Ltd (Target Rs 4500), Sun Pharmaceuticals (Target Rs 700), ICICI Prudential Life Insurance Company (Target Rs 700), HDFC Life Insurance Company (Target Rs 850), Jindal Steel and Power (Target Rs 375), ACC (Target Rs 2,200) and HCL Technologies (Target Rs 1,250) are likely to be key beneficiaries of Union Budget 2021. Bhasin has recommended to buy these stocks ahead of budget and hold them till Diwali 2021.
Ajit Mishra, VP-Research, Religare Broking
Ajit Mishra believes stocks such as Hindustan Unilever Ltd (HUL), Dabur India, Emami, etc will benefit from rural growth and more discretionary income in the hands of consumers. Also, more funds and measures taken for farmers would be positive for companies like Coromandel International Ltd, Rallis India, etc. Infrastructure push will be positive for sectors such as capital goods, realty, cement and for stocks such as L&T, ABB India, Ramco Cements, Ambuja Cements, ACC etc. In the auto sector, companies such as Maruti Suzuki, Ashok Leyland, Bajaj-Auto, Mahindra & Mahindra are expected to benefit only if there will be some deduction in auto loans or interest.
Rajesh Palviya, Head Technical & Derivatives Research, Axis Securities Ltd
Solara Active Pharma Science Ltd: Palviya has suggested a buy range of Rs 2840-2784 for Solara Active Pharma Science Ltd and a target price of Rs 3035-3080. The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in bullish mode and placed above 50 mark which supports rising strength.
Polycab India: Rajesh Palviya recommended to buy the Polycab India stock in range of 1278-1245 with an upside target of 1400-1440. Currently stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirm out bullish thesis. On the weekly chart, the stock has decisively broken out its one year Resistance zone of 1185 levels showing bulls confidence.
Phillips Carbon Black: The stock has a buy range of Rs 198-193 and a target price of Rs 225-230. The stock has observed a strong breakout from its six weeks“Consolidation Range” (160- 183) indicating bulls are in control . Increased volumes activity signals a good sign of increased participation on breakout.
Apollo Tyres: The stock has formed a large bullish candle on the weekly chart with huge volume indicates strong buying momentum in stock. Currently stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirm out bullish. The buying range for Apollo Tyres is Rs 231-225 and price target of Rs 260-268.
Rajesh Agarwal, Head of Research, AUM Capital Market
IRCTC: Rajesh Agarwal has pegged a target price of Rs 1,600-1,900 for Indian Railway Catering and Tourism Corporation stock. Agarwal favors this company on the back of virtual monopoly, strong earnings profile, diversified business segment, high entry barrier to the business with reasonable valuation.
Jindal Steel and Power Ltd: JSPL stock has a target of rs 350 apiece for next six to nine months. The firm reported highest-ever steel production volumes and it was India’s first private company to get the ‘regular supplier’ status from Indian Railways. On the back of buoyant overseas and domestic demand, this stock has a ‘buy’ call.
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