Which sectors and stocks reacted after the Budget?

Source: Indiabudget.in

We have curated the list of key budget announcements along with respective impacted sectors and stocks. Please note, that this is not an exhaustive list of stocks in the sector. We have chosen some of the largest and more established players in that sector.

All the data is sourced from Budget documents, BSE, NSE

Logistics

Announcement:

• Promotion of FPOs, cooperatives & start-ups for vegetable supply chains for collection, storage, and marketing.

List of select logistics stocks impacted

Agriculture

Announcement:

• Natural Farming - 1 crore farmers across the country will be initiated into natural farming, supported by certification and branding in the next 2 years.
• Financing for Shrimp farming, processing, and export will be facilitated through NABARD.

List of select agriculture stocks impacted

IT

Announcement:

• Digital public infrastructure for farmers and digital land survey

List of select IT stocks impacted

Edible oils

Announcement:

• Promotion of Atma Nirbharta in oil seeds such as mustard, groundnut, sesame, soybean, and sunflower.

List of select edible oils stocks impacted

Education / Human resource

Announcement:

• Professional upskilling programme and financial support to employees/employers in terms of lower-interest loan and EPFO subsidy.

List of select education / human resource stocks impacted

Metals and mining

Announcement:

• Focus on Critical Minerals Mission for domestic production, recycling and overseas acquisition.
• Fully exempt custom duties on 25 critical minerals
• R&D focus for the Nuclear Sector.
• Provision for advanced ultra super critical thermal power plants.

List of select metals and mining stocks impacted

Banks

Announcement:

• Strengthening of the tribunal and appellate tribunals to speed up insolvency resolution and additional tribunals to be established.

List of select bank stocks impacted

Infrastructure

Announcement:

• Twelve industrial parks are to be constructed under the National Industrial Corridor Development Programme
• The budget kept capital expenditure unchanged at ₹11.1 lakh crore.

List of select infrastructure stocks impacted

Water

Announcement:

• Promote water supply, sewage treatment, and solid waste management projects and services for 100 large cities through bankable projects.

List of select water stocks impacted

Housing

Announcement:

• PM Awas Yojana Urban 2.0 launched which mandates the construction of affordable housing for 1 crore urban poor and middle-class families will be addressed with an investment of ₹10 lakh crore.

List of select housing stocks impacted

Energy

Announcement:

• PM Surya Ghar Muft Bijli Yojana which mandates 1 crore households to get free electricity.
• Exempted more capital goods for manufacturing of solar cells & panels
• A policy for promoting pumped storage projects will be brought.

List of select energy stocks impacted

FMCG

Announcement:

• The government has made a provision of ₹2.7 lakh crore for rural development.

List of select FMCG stocks impacted

NBFC

Announcement:

• Reduce customs duty on gold and silver to 6%.

List of select NBFC stocks impacted

Jewellery

Announcement:

• Reduce customs duty on gold and silver to 6%.

List of select Jewellery stocks impacted

Real Estate

Announcement:

• In a bid to rationalize the capital gains tax regime, changed the Long Term Capital Gain tax rate to 12.5% across all financial and non-financial assets, but removed indexation benefit from real estate.

List of select real estate stocks impacted

Pharma

Announcement:

• Setting up ₹1 lakh crore fund for Innovation, R&D in pharma sector with private players.

List of select pharma stocks impacted

E-commerce

Announcement:

• E-Commerce Export Hubs will be set up to bring local goods on e-commerce channels.
• TDS rate for e-commerce reduced from 1% to 1.01%.

List of select E-commerce stocks impacted

Shipping

Announcement:

• Ownership, leasing, and flagging reforms will be implemented to improve the share of the Indian shipping industry and generate more employment.

List of select shipping stocks impacted

Financial services

Announcement:

• Increase capital gain taxes i.e long-term capital gain taxes and short-term capital gain taxes. Further Govt has also increased STT on F&O trades.

List of select financial services stocks impacted

Tourism

Announcement:

• The Government has allocated ₹2,400 crores for the tourism sector which will be used to build corridors leading to the promotion of religious tourism.

List of select tourism stocks impacted

Conclusion

The Budget has significantly impacted the returns of the stock market. The curated list above can guide investors to navigate the impact of the budget in more detail.