Ready for Budget 2025? Here are some stocks to add to your watchlist

The equity markets will remain open on Saturday, February 1, when the Union Budget 2025 will be presented. The special budget session will allow investors and traders to react to the budget announcements.

The markets experience volatility due to budget announcements that positively or negatively impact specific sectors or industries. Traders and short-term investors aim to capitalise on this volatility, with some utilising derivative segments like options and others focusing on equities.

Most equity investors struggle to find stocks that will likely remain in focus ahead of the budget and miss the opportunity to trade. It is important to add key stocks from different sectors expected to see announcements in the budget to your watchlist.

Defence sector

The defence sector has been in focus for many budgets with increased allocation for spending and upgradation of existing sources. Each year, the defence sector has seen some announcements in the budget. Here are key stocks from the defence sector likely to be in focus on budget day

Railways

Indian railways sector has seen sharp upheaval in the past decade after the government decided to improve the quality of India’s largest passenger travel mode. Experts anticipate Finance Minister Nirmala Sitharaman increasing capital expenditure for the railway sector by 15-20% in the upcoming Union Budget 2025, potentially raising the total allocation to over ₹3 lakh crore.

Public sector undertakings

The government could not achieve its ambitious divestment target for public sector undertakings in FY25. However, experts suggest that the FY26 budget estimates for divestment are expected to be more realistic.

EMS players

The government of India is expected to continue supporting electronic manufacturing services (EMS) players through a production-linked investment scheme. According to media reports, the government is expected to announce a PLI scheme worth ₹25,000 crore for electronic component manufacturers and ₹43,000 crore for semiconductors.

Agriculture and allied sectors

The agriculture sector has always received more focus from the government in the budget as the majority of the population is reliant on agriculture and allied activities. According to media reports, the sector is expected to receive increased allocation to ₹1.75 lakh crore and a limit on loans from Kisan credit cards.