Clear winners from the Budget are NBCC, L&T; and Cement manufactures such as UltraTech Cement, ACC. Infrastructure push to continue with more rigour
We picked up three companies from different businesses which fit the bill of reforms/policies favouring doubling of farmers income, developing infrastructure, railways & roads, health care, education, defence, DBT, up-trending paychecks of government employees to name a few, Dharmesh Kant, Head - Retail Research, IndiaNivesh Securities, told Moneycontrol’s Kshitij Anand in an interview.Q: What is your first take on the Budget 2019?
A: The government's budget is all about integration, ease of doing business, ease of raising capital, and government-driven infra-push. These will serve as the directional road map to be chartered in the next few years.
The government has announced big bang structural reforms at the macro level - the opening of the financial sector, aviation, FDI in retail, raising of debt money by non-banking financial companies (NBFC) through the foreign direct investment (FDI) route.
The government has made sure that power reforms will continue, the push on infrastructure will be dedicated to the freight corridor and waterways.
To further improve the condition of the industries, the overhaul and reform of the rental laws will be carried out, the payment window for MSME through a platform for government contracts will be put in place.
There will likely be a boost to the FPI flows by creating an investor-friendly environment. A new window will be opened on an electronic fundraising platform for social organisations like NGO’s through equity capital.
The proposals are primarily focused on ease of raising foreign capital for various investment opportunities.Q: Who were the winners and losers from Budget 2019?
A: It is more of a directional budget on a structural framework for future growth. Will take its own sweet time to be implemented if macro-tail winds continue. The big concern is funding of capital expenditure by the government.
However, the Budget speech was silent on how revenue will come in as it was all about spending on the expectation of foreign funds flowing in on the India growth story.
To sum it the focus was on raising equity and debt funds for developmental work rather than through internal accruals.Q: Top stocks which investors can look at buying post the Budget 2019?
A) We picked up three companies from different businesses which fit the bill of reforms/policies favouring doubling of farmers income, developing infrastructure, railways & roads, health care, education, defence, DBT, up-trending paychecks of government employees to name a few.
1) Canara Bank