Stocks to buy: The Union Budget 2025-2026 strikes a balance between fiscal prudence and economic stimulus. The fiscal deficit target has been sharply reduced to 4.4% of GDP from 4.8% in the previous year. The Budget provides a boost to consumption through income tax relief, optimizes public capital expenditure, and strategically relies on private sector investment to drive growth.
According to Utsav Verma, Head of Research – Institutional Equities, Choice International, no negative surprises or imaginative ways to fund the deficit is a big plus in the Budget 2025.
“We expect the budget to be positive for consumption oriented sectors such as private sector banks, FMCG and consumer discretionary such as autos, hotels, food, textiles, leather goods and retail. RBI had already taken liquidity measures last month and now the path seems set for interest rate cut which should further be positive for the outlined sectors. Capex plays such as infra, defense and railways haven’t been ignored given the current capex allocation will be difficult to spend this fiscal,” Verma said.
Choice Institutional Equities believes that right stock selection across market caps remains very important given global geopolitics, strong dollar index and higher US bond yields and its impact on FII flows along with pockets of over valuation across sectors.
Here are stock recommendations from Choice International after the Budget 2025:
Stocks to buy
Maruti Suzuki India | Buy | Target Price: ₹13,958
TVS Motor Company | Buy | Target Price: ₹2,936
Mahindra & Mahindra (M&M) | Buy | Target Price: ₹3,466
Bajaj Auto | Buy | Target Price: ₹9,854
Gabriel India | Buy | Target Price: ₹565
Hero MotoCorp | Buy | Target Price: ₹5,314
Lumax Industries | Buy | Target Price: ₹2,622
ICICI Bank | Buy | Target Price: ₹1,503
Federal Bank | Buy | Target Price: ₹222
Bharat Electronics | Buy | Target Price: ₹370
Apollo Pipes | Buy | Target Price: ₹503
Ultratech Cement | Buy | Target Price: ₹13,246
JK Cement | Buy | Target Price: ₹5,532
Piramal Pharma | Buy | Target Price: ₹315
Yatharth Hospital & Trauma Care Services | Buy | Target Price: ₹628
Narayana Hruduyalaya | Buy | Target Price: ₹1,405
Sun Pharmaceutical Industries | Buy | Target Price: ₹2,200
PSP Projects | Buy | Target Price: ₹760
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
