Jewelry and allied space are going to get hurt due to additional customs duty hence stocks like Titan Company and TBZ from this space may see some pressure on the upside, says Mustafa Nadeem
Jewellery and allied space are going to get hurt due to additional customs duty hence stocks like Titan Company and Tribhovandas Bhimji Zaveri (TBZ) from this space may see some pressure on the upside, Mustafa Nadeem, CEO, Epic Research, said in an interview with Moneycontrol’s Kshitij Anand.
Q) What is your first take on the Budget 2019?
A) There are few important takeaways from the budget that is promising while at the same time may hurt the ongoing trend for certain stocks.
We believe the Rs 70,000 crore for PSU and increase the foreign holding to the sectoral limit in PSU and CPSE is also a welcome move.
With that, the aggressive disinvestment plan is a good scenario for PSU space and banks as well and may further strengthen the recent recovery in PSU Banks and overall space.
Since there is a kind of bottoming signal in PSU banks space we believe this will further strengthen the space and reshape its medium to the long-term trend.
Q) Winners and losers from Budget 2019?
A) Losers are definitely the Oil and petroleum space due to excise duty on Petrol. Stocks like IOC, HPCL, and BPCL may take a hit.
Jewelry and allied space are going to get hurt due to additional customs duty hence stocks like Titan Company and TBZ from this space may see some pressure on the upside.
With RBI as the new regulator for HFC, it will be a win-win situation for both the investor and HFC companies like HDFC, L&T Finance Holding, M&M Finance, etc.
With new 1.95 crore houses to be built in rural areas will improve the demand for construction as well as will improve the outlook for stocks like Century Plyboard, Cera Sanitaryware and so on.
Also with a reduction in Corporate tax to 35 percent for companies up to 25 percent is going to improve scenario as well.
The spending on infrastructure and construction space with 100 lakh crore in the next five years is going to boost overall space and stocks like L&T.
Q) Anything specific which could impact investors and markets?
A) Yes, the one major important announcement that is welcome aboard is to reduce promoter holding to 65 percent and increase retail participation to 35 percent.
This is a welcome move and will definitely bring out various stocks which are valuable for investors in the long term. This will also bring much more depth to the overall market and liquidity. The relief in STT was long overdue and is a welcome move on options exercise.
Q) Top five stocks which investors can look at buying post the Budget 2019?
A) Here is a list of top five stocks which are likely to impact the most from the Budget 2019 are Canara Bank, Bank of Baroda, L&T Finance Holding, L&T and SBI.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.