Finance Minister Nirmala Sitharaman presented a budget of FY 2025-26 on the first date of February. This budget was completely balanced, in which positive aspects were more and negatively less. The main focus of the budget is on 4C i.e. Capex, Consumption, Fiscal Consolidation, and Employment Creation. Brokerage House Sharekhan believes that the government has met the market expectations in terms of fiscal balance. Also, by changing tax slabs, big steps have been taken to give relief of about Rs 1 lakh crore to the middle class, which is expected to promote consumption. Between these sentiments, the brokerage house has released a pickup list of large, mid and small cap shares focusing on 4C. This includes legendary shares like Hul, Dabur, TCS, Infosys, Hudco, Marico and BATA.
Consption will boost with budget, economy will get new speed
Brokerage House Sharekhan said in a note that due to inflation pressure and low available income, the decrease in consumption activities for a large population of India had remained a matter of concern for the last few years. As per expectation, the Union Budget has given priority to the region and has taken an important step to ensure additional savings of Rs 1 lakh crore in the lower-age category. Under this, 100% tax exemption has been given on annual income up to Rs 12 lakh.
The brokerage house believes that the move will have long -term positive effects on the consumption area, especially discretionary and consumer durables. We believe that many of the previous quarters will now play an important role in speeding up the economy of the consumption sector.
These Large Stocks became Top Pick of Sharekhan
Focusing on Brokerage House Sharekhan 4C, Laj Cap Stocks in its pickup list of TCS, Infosys, DLF, ICICI Bank, M & M, Sbin, L&T, Tata Motors, Hul, Dabur, Tata Consumer, Sun Pharma, hero
MotoCorp, NTPC, Powergrid and UltraTech are included.
These Mid Cap Stocks became Top Pick of Sharekhan
Brokerage House has chosen Macrotech, Macrotech, Marico, Bata, SRF, Persistent Systems, Sundaram Fasteners, PNB Housing, Hoodco, Varun Beverages, Zides Welness and Naveen Florine from the mid -cap stocks.
These Small Cap Stocks became Top Pick of Sharekhan
Brokerage House has made the top pick up from Small Cap Stocks to Kirloskar Oil Engine, Radico, Santech Realty, ADBL, Arvind SmartSpace, KeC, V2 Retail, Lumax Auto Technologies, ISGEC and Emami.
Recent months have declined the shares of the Public Sector Undertaking (PSE) and capital goods sector, while IT services, pharma and textile sector shares have seen a boom. After the budget, investors may increase interest in shares of consumption companies. Additionally, the upcoming monetary review of the Reserve Bank of India (RBI) has a possibility of cutting interest rates, which may further increase consumption.