Budget 2022 Stock Impact: Winners And Losers

Finance Minister Nirmala Sitharaman announced a capex-driven spending boost in her 90-minute Budget 2022 speech even as she cut allocations for some of the other key schemes.

Here are the likely winners and losers from key proposals in the budget for 2022-23 fiscal.

Likely Winners

Announcement: Rs 48,000 crore allocated for affordable housing scheme for FY23; construction of 80 lakh houses in rural and urban India.

• Impact: Positive for real estate and cement.

• Stocks: Positive for Godrej Properties Ltd., DB Realty Ltd., Prestige Estates Projects Ltd., Brigade Enterprises Ltd., ACC Ltd., Ambuja Cements Ltd. and UltraTech Cement Ltd.

Announcement: 25,000 kilometres of new highways to be added in FY23; proposed allocation of Rs 20,000 crore.

• Impact: Positive for road infrastructure and cement sectors.

• Stocks: Positive for IRB Infrastructure Developers Ltd., Dilip Buildcon Ltd., Gayatri Projects Ltd. ACC Ltd., Ambuja Cement Ltd. and UltraTech Cement Ltd.

Announcement: Data centres, EV chargers, battery charging/storage to get infrastructure status.

• Sector Impact: Positive for engineering goods.

• Stock Impact: Positive for Larsen & Toubro Ltd., Cummins India Ltd., Siemens Ltd., ABB India Ltd., Honeywell Automation India Ltd.

Announcements

-Of 8.7 crore households targeted under Har Ghar Nal Se Jal scheme, 5.5 crore have been given tap water connections in the last two years. Allocation of Rs 60,000 crore to cover 3.8 crore households in FY23.

-Rs 48,000 crore allocation for Pradhan Mantra Awas Yojana; central government to work with states to reduce time for land clearances for urban affordable housing.

• Sector Impact: Positive For EPC and cement

• Stock Impact: Positive for PNC Infra td., Ashoka Buildcon Ltd., GR Infraprojects Ltd., HG Infra Engineering Ltd., KNR Construction Ltd., Capacite Infraprojects Ltd., ACC Ltd., Ambuja Cement Ltd. and UltraTech Cement Ltd.

Announcement: Allowing surety bonds for government contracts.

• Sector Impact: Positive for the general insurance sector.

• Stock Impact: Positive for ICICI Lombard Co., New India Assurance Co.

Likely Losers

Announcement: Unblended fuel to attract an additional excise duty of Rs 2 a litre

• Sector Impact: Oil marketers to pass on any such costs; neutral as all OMCs comply with blending norms.

• Stock Impact: Negative for Bharat Petrol Corp., Hindustan Petroleum Corp. and India Oil Corp.

Announcement: Additional allocation of Rs 19,500 crore for the PLI scheme for manufacturing of high-efficiency solar modules.

• Sector Impact: Negative for integrated project players.

• Stock Impact: Negative for Reliance Industries Ltd., L&T and other players planning integrated projects, positive for Bharat Heavy Electricals Ltd.

Announcement: Additional dumping duty on stainless steel and alloy steel revoked.

• Sector Impact: Negative for stainless steel makers.

• Stock Impact: Negative for Jindal Stainless Ltd., Jindal Stainless Hisar Ltd.

Announcement: 68% of defence capex to be reserved for domestic companies.

• Sector Impact: Positive for public sector and private defence companies.

• Stock Impact: Mixed impact on Bharat Dynamics Ltd., Bharat Forge Ltd., Astra Microwave Products Ltd.

Announcement: Customs duty on methanol and acetic acid reduced.

• Sector Impact: Fertiliser producers (of acetic acid) to be hit.

• Stock Impact: Negative for Gujarat Narmada Valley Fertilisers & Chemicals Ltd.