The Budget FY26 outlined transformative reforms across six major key sectors to drive India's journey towards Viksit Bharat, with focus areas include power, mining, urban development -particularly water infrastructure, financial sector, regulatory reforms, and taxation, Aditya Birla Money said in its Budget note.
The domestic brokerage said the combination of a stable central government and robust corporate balance sheets is a unique and powerful driver for India’s economic trajectory, as reflected in the declining fiscal deficit. The Indian growth story remains intact from a medium-to-long-term perspective and is expected to outpace most global economies, it added.
"Given this strong backdrop, Indian equities warrant a higher premium relative other economies. We anticipate Nifty EPS to grow at a CAGR of 13 per cent over FY25-27. At its current valuation of 17.3 times FY26 EPS, Nifty is trading at a 10 per cent discount to its 10-year historical average, presenting an attractive opportunity," Aditya Birla Money.
The brokerage said boosting agricultural productivity in 100 districts through improved irrigation and better credit access, would benefit 1.7 crore farmers. It noted that the Budget talked about self-sufficiency in pulses and enhancing cotton productivity technological support over the next 5-6 years. Besides, strengthening of food processing and fisheries while promoting rural employment and value addition for farmers were among major highlights of the Budget. This will be positive for stocks such as Avanti Feeds Ltd, L&T Foods Ltd, Manorama Industries Ltd and Varun Beverages Ltd.
The Budget's focus also was on strengthening domestic production of solar PV cells, EV batteries, wind turbines, and high-voltage transmission equipment. It focused on enhancing value addition in manufacturing electrolyzers, motors and grid-scale batteries. This is seen as positive for Suzlon Energy Ltd, Triveni Turbines Ltd, Exide Industries Ltd, HBL Power Systems and Waaree Energies Ltd.
In the pharma and healthcare, the Budget talked about the expansion of customs duty exemptions to include 36 new lifesaving drugs and 6 medicines under concessional duty. The inclusion of 37 additional medicines and 13 new patient assistance programs under full customs duty exemption and establishment of Day Care Cancer Centres in all district hospitals within three years is seen positive. This is seen positive for Max Healthcare Ltd, Yatharth, Krsnaa Dignostics, Dr Reddy's Laboratories Ltd and Sun Pharma.
In the infra sector, allocation of Rs 1.5 lakh crore in interest-free loans to states for capital expenditure, along with the launch of a National Geospatial mission to modernise land records and infrastructure design is positive. Establishment of a Rs 25,000 crore maritime development fund to provide long-term financing for the maritime industry is another positive. The creation of a Rs 1 lakh crore Urban Challenge Fund to support urban redevelopment, water, and sanitation projects, is another positive. These infra-related announcements would benefit KEC International Ltd, JSW Infra Ltd, EMS, Enviro infra Ltd and International, Aditya Birla Money said.
In he travel & tourism sector, expansion of regional air connectivity with 120 new destinations, aiming to serve 4 crore passengers in the next decade is a positive, so is the enhancement of 50 top tourist destinations with improved infrastructure and incentives for states. Hotels in those destinations will be included in the infrastructure HML, the Budget suggested. Stocks to benefit are Indian Hotels Co Ltd, Lemon Tree, GMR Airports Ltd, Adani Enterprises Ltd and InterGlobe Aviation Ltd (Indigo).