Top 20 Stocks that would benefit from Budget-2019
Budget 2019 is unveiled now. We got the indication about the sectors that would benefit now in 2019-2020. Analysts are able to predict the sectors that are unattractive now. If you are stock market investor, you might be wondering which are the top stocks that would benefit from Budget 2019. In this article we would provide the sectors that would would have a positive impact of Budget 2019. We would also provide Top stocks that would benefit from Budget 2019.
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Which are the Top Sectors that would get benefited from Budget 2019?
Our Finance Minister has presented Budget 2019 on Friday. Media made big hype about Budget 2019. The majority of the employees and investors would have been disappointed with no major benefits to them. However, investors can review specific sectors that might get benefitted. Here are the list of top sectors that would benefit from Budget 2019
#1 – Banking Sector especially PSU Banks
One of the biggest beneficiaries is PSU Banks. The finance minister has announced that they would infuse capital of Rs 70 Bn rupees to State Run PSU Banks. They would also provide partial one time guarantee on loan defaults on borrowings by shadow banks. They would also provide shielding through RBI against defaults from NBFCs to such PSU Banks. These measures would boost the growth of PSU Banks.
#2 – Aviation Sector
Budget 2019 indicates that it would open Foreign Direct Investment (FDI) in Aviation sector. They would re-look at selling Air India again. Currently with Jet Airways crisis, Aviation industry has become a not so attractive industry. With these measures indicated in Budget 2019, Aviation industry is expected to re-energize in coming months.
#3 – Agriculture Sector
Finance Minister indicated that they would focus more on Agriculture Infrastructure. This would mean companies that are focusing on connecting roads to villages, building rural homes, power, cattle feed, etc., would get benefited with such Agriculture Infra focus.
#4 – Construction Sector
There were few promises made in the Budget that would boost construction and real estate sector. The finance minister said building over 19.5 mn rural homes by 2022. The Govt would focus on Infrastructure i.e. building roads in national highways and rural areas. Some of the Infra mutual funds are already focusing on investing good stocks from this sector.
#5 – Focus on Water (Utility Sector)
We are seeing a severe water crisis in Chennai today. As per recent reports published, water scarcity is expected in Bangalore and Hyderabad and few more cities in 2020. Water scarcity is expected to spread across India in the next 2-5 years. In this budget, finance minister indicated that there is plan to provide piped water across Indian households by 2024 and manage the water scarcity by consolidating country’s scattered water.
Which are the Top 20 Stocks that would get benefitted from Budget 2019?
Now let us look at some of the top stocks that would get benefited with budget 2019. There is no particular order followed here.
Top Stocks from Banking Sector that would get benefitted from Budget 2019
Here are the list of PSU Banks that would benefit now.
#1 – State Bank of India – Current Market Price (CMP) Rs 370
#2 – Bank of Baroda – Current Market Price (CMP) Rs 130
#3 – Canara Bank – Current Market Price (CMP) Rs 290
#4 – Union Bank of India – Current Market Price (CMP) Rs 84
#5 – Punjab National Bank – Current Market Price (CMP) Rs 81
#6 – Bank of India – Current Market Price (CMP) Rs 94
Top Stocks from Aviation Sector that would get benefitted from Budget 2019
#7 – Spice Jet – Current Market Price (CMP) Rs 122
#8 – Indigo Airlines (Interglobe Aviation) – Current Market Price (CMP) Rs 1,562
Top Stocks from Agriculture Sector that would get benefitted from Budget 2019
Here are the list of companies that have penetration in rural areas which would benefit now.
#9 – ITC – Current Market Price (CMP) Rs 280
#10 – M&M – Current Market Price (CMP) Rs 640
#11 – HUL – Current Market Price (CMP) Rs 1,787
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Top Stocks from Construction and Real Estate Sector that would get benefited from Budget 2019
Here is the list of stocks that are in real estate and construction which would benefit from a govt focus on building roads and highways.
#12 – L&T – Current Market Price (CMP) Rs 1,560
#13 – Dilip Buildcon – Current Market Price (CMP) Rs 463
#14 – IRB Infra – Current Market Price (CMP) Rs 93
#15 – Prestige Estates – Current Market Price (CMP) Rs 276
#16 – DLF – Current Market Price (CMP) Rs 86
Top Stocks from Water Industry that would get benefitted from Budget 2019
Here is the list of stocks that would benefit in Water industry now.
#17 – Kirloskar Bros – Current Market Price (CMP) Rs 189
#18 – PI Industries – Current Market Price (CMP) Rs 1,169
#19 – Shakti Pumps – Current Market Price (CMP) Rs 391
#20 – Jain Irrigation – Current Market Price (CMP) Rs 26
Should you invest in these Top Stocks that would get benefited from Budget 2019?
The straight answer is NO. Budget is just announced. Stock Markets may take some correction. Please review these stocks. Check their quarterly performance. If you really think these are consistently performing stocks and fit into your risk profile, you can invest them over a period of time.
Disclaimer: I do not own any of these stocks as of the date of the publication of the article. However, I can purchase these stocks any time without any notice on this blog. The above recommendation is provided based on recent budget. There is no guarantee that Govt of India would implement all promises indicated in the budget. Investment in stocks is generally high risk. You may need to consult your financial advisor before investing in such stocks.
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Top 20 Stocks that would benefit from Budget-2019
You have helped and guided me a lot in mutual funds. Today I would like your advice on stocks. I have bought 2000 shares of Yes Bank at 55 rs thinking that it would be good value buying. would also like to hold these for long term. Also looking to add some more when the prices touches 40-35. Am I on right track with this stock? What is your outlook on yes bank stock?
Thanks Suresh…much appreciated
Thanks for the tips.