Budget 2023 Stock Impact: Winners And Losers
Here are the likely winners and losers from key Budget 2023 announcements.
Finance Minister Nirmala Sitharaman announced growth-focused budget for FY23 while staying on fiscal consolidation path
The capex investment outlay has been increased by 33% to Rs 10 lakh crore for the next fiscal, Sitharaman in her 90-minute Budget 2023 speech. That's about 3.3% of the GDP in FY24.
She offered tax relief under the new regime, and also increased outlay for the 'housing for all' scheme.
Here are the likely winners and losers from key proposals in the budget for 2023-24 fiscal.
Likely Winners
Announcement: Capex allocation increased by 33% to Rs 10 lakh crore or 3.3% of GDP .
Impact: Positive for construction firms in road, water, urban development and cement sectors.
Stocks: Positive for L&T, JKumar, KEC, RVNL, Kalpataru, NCC, Ambuja Cement, Shree Cement, Dalmia Bharat, JK Cement, JK Lakshmi
Announcement: Capital outlay of Rs 2.40 lakh crore for railways in FY24.
Impact: Positive for railways.
Stocks: Positive for KEC, Siemens, RVNL, Kalpataru, Titagarh Wagons
Announcement: 100 critical transport infra projects for steel, ports, fertiliser, coal, food grain sectors have been identified with an investment of Rs 75,000 crore, including Rs 15,000 crore from private sources.
Impact: Positive for infrastructure and steel companies.
Stocks: Positive for Tata Steel, Hindalco, NALCO, Vedanta
Announcement: Outlay of Rs 10,000 crore per year set for Urban Infra Development Fund to be established to make up for priority sector lending shortfall.
Impact: Positive for infrastructure, metals, cement companies.
Stocks: Positive for KNR Construction, PNC Infratech, RITES, KEC International, PSP Projects, Ambuja Cement, Shree Cement, Dalmia Bharat, JK Cement, JK Lakshmi
Announcement: 100 labs for developing applications for 5G services to be set up.
Impact: Positive for telecom and optic fibre companies
Stocks: Positive for Reliance Jio, Airtel, Aksh Optifibre, Surana Telecom And Power, Finolex Cables
Announcement: Investment of Rs 10,000 crore to set up compressed natural gas plants. CBG would be mandated in due course.
Impact: Positive for bioenergy companies.
Stocks: Positive for Praj Industries.
Announcement: Approval of 13 GW of Ladakh renewable projects involving a capex of Rs 20,700 crore.
Impact: Positive for transmission positive for high-voltage direct current players largely. ICICI Securities expects EPC companies, transformers companies and other ancillary sectors to benefit due to strong order inflows.
Stocks: Positive for Siemens, Hitachi Energy and GE T&D.
Announcement: PMAY outlay increased by 66% to Rs 79,000 crore.
Impact: Positive for affordable housing companies
Stocks: Positive for Aavas financiers and Home First Finance.
Announcement: Farm credit limit for FY24 raised to Rs 20 lakh crore. Also, plans to build more storage and boosting productivity via dedicated funds
Impact: Positive for agrochemical and seed companies.
Stocks: Positive for Kaveri Seed, Dhanuka Agritech, and Sharda Cropchem.
Announcement: Budget provides Rs 35,000 crore for priority capital investment towards energy transition and net zero objectives and energy security
Impact: Positive for companies focusing on renewable energy
Stocks: Positive for Praj, ISGEC Heavy, Balrampur Chini, Dhampur, Dwarikesh.
Announcement: The government has reduced customs duty on basic acid base fluorspar from 5% to 2.5% .
Impact: Positive for fluorine chemistry players.
Stock Impact: Positive for SRF, Navin Fluorine.
Announcement: PM Pranam Scheme will promote the balanced use of fertilisers, reducing subsidy bill. This will encourage use of organic farming and micro fertiliser. Also, one crore farmers will be facilitate to adopt natural farming over the next three years.
Impact: Positive for fertiliser companies
Stocks: Positive for PI Industries, FACT, RCF, Coromandel Intl, UPL, Dhanuka Agritech
Announcement: To enhance indigenous production for lab grown diamonds and reduce import dependency, financial support to be provided to IITs for research and development.
Impact: Positive for gems and jewellery sector.
Stocks: May be positive for Titan, Kalyan Jewellers.
NEW
Announcement: Reduction in customs duty on shrimp feed 15% to 5% to promote exports.
Impact: Positive for shrimp manufacturing companies.
Stock: Positive for Avanti Feeds, Waterbase, Apex Frozen Foods, Coastal Corporation, Godrej Agrovet
Announcement: Basic import duty on compounded rubber increased to 25% from 10%.
Impact: Positive for rubber companies.
Stock: Indag Rubber, Apcotex.
Announcement: Reduction on customs duty on open cells used in production of televisions to 2.5% from 5% and reduction in customs duty on import of certain inputs for mobile phone manufacturing.
Impact: Positive for television and mobile manufacturing companies.
Stock: Positive for Dixon Technologies.
Announcement: Four multimodal logistics parks through public-private partnershiop to be awarded.
Impact: Positive for logistic companies.
Stock: Positive for GDL, Concor, TCI, GE Shipping, Shreyas Shipping, Dredging corporation.
Announcement: Customs duty exemption extended on import of equipment to manufacture of lithium-ion cell for electric vehicles till 2024.
Impact: Positive for lithium-ion battery makers.
Stock: Positive for Exide, Amara Raja Batteries and Eveready.
Announcement: Opportunity to sugar co-operatives to claim payments made to sugarcane farmers for the period prior to assessment year 2016-17 as expenditure. This will provide relief of almost Rs 10,000 crore.
Impact: Positive for sugar companies.
Stock: Positive for Shree Renuka, Dalmia Sugar, Dwarikesh Sugar, Ugar Sugar, Balrampur Chini.
Likely Losers
Announcement: NCCD on cigarettes increased by 16%.
Impact: Impacts cigarette manufacturing companies.
Stocks: Negative for ITC, VST Industries, Godfrey Phillips.