After 5 years, 2019 is the year of the general election. As per the act and regulation, a temporary budget has to be placed before the main Union Budget, termed as the interim budget. Unlike the annual budget, it is applicable for 2 or 3 months. The main objectives of the budget are to minimize the expenditure and maximize the revenue. 1st Feb 2019 was the interim budget day. Finance Minister Piyush Goyal presented the interim budget in the Lok Sabha on that day. The article will give you the suggestion of topmost Post Budget stock picks 2019 but before that let’s have a look at the 2019 interim budget highlight areas.
2019 Interim Budget Highlight Area
The key areas of 2019 interim budget are given below:
- The budget comes out beneficial especially for the farmers, real estate sector and salaried class.
- Multiple small cases also gain a positive trend for the budget.
- For the improvement of the rural economy, our finance minister announced a relief package of 75,000 Cr. under Pradhan Mantri Kisan Samman Nidhi.
- For the realty sector, the present Govt has announced a tax reformation.
- Besides the above, Govt has approved over 4 lakh houses under Urban PMAY.
- The country’s physical infrastructure also being boosted by allocating 82,571 cr.
- Allocation to metro projects has been increased to 17,714 Cr. up from 14,865 cr. for 2019-20 period.
Budget Impact on Small case
As we know Zerodha (No. 1 brokerage firm in India) has launched Small case about 2 years ago. The investment platform is formed especially for the retail investors. Here, the investment strategy is mainly thematic and portfolio based. It contains baskets of stocks which reflect trending strategies and ideas. It is considered as the easiest way to invest in stocks portfolios for the long-term period. You may go through our previous content in a small case.
Only Zerodha Users can Use the Small case.
Here, as per Zerodha’s recommendation, the focus small cases are as follows:
- Rising Rural Demand
- Realty Tracker
- Infra Tracker
- Smart Cities
Top Most Post Budget Stock Picks 2019
Now, come to the main discussion part of the content Top Most Post Budget Stock Picks 2019. We’ve taken the listed data from some of the well-known sites. Here is the list below:
Top Most Post Budget Stock Picks 2019, recommended by 5Paisa (One of the leading Premium Discount Brokers in India)
Godrej Agrovet (GAL)
GAL is a diversified company, engaged in the agri-business company. It has its presence in different segments like animal feed, crop protection, vegetable oil, and dairy products. The company has the advantage of brand image. Besides this, GAL focus on the export market for expanding the crop protection by launching new generic chemicals. Improving the consumption of dairy as well as the rising share of the organized market in dairy business also suits well for the company. It can be seen a 30% upside from CMP of Rs563 over the 1-year period.
Tejas Networks (TNL)
TNL is one of the largest companies in the Indian optical equipment market. They have engaged in the business of internet service providers and telecom, defense companies along with the Government entities. TNL would be a beneficiary for the telecom operators. It has also the advantage of being the only Indian optical network equipment company. Overall, it is estimated to see an upside of 32% from CMP (current market price) of Rs368 over a period of 1 year.
JK Tyre & Industries
JKTIL belongs to one of the leading Indian Truck and Bus Radial (TBR) and LCV tyres manufacturer. The company derives 56% revenue from the replacement segment, 10% from exports and, 34% from OEMs. The interim budget announcement of raising customs duty on TBR from 10% to 15% will make imports more costly, boosting volumes for JKTIL. Imposition of anti-dumping duty on Chinese TBR tyres along with the Government’s thrust on infrastructure may result in strong CV sales and volumes. Hence, it is expected to see an upside of 40% from the current market price of Rs167 over a period of 1 year.
Larsen & Toubro (L&T)
L & T is India’s largest engineering and construction company with no real peers (in its breadth and depth of offerings). It is expected to see a hike in the Capital expenditure in India led by resolution of bad debt, pick-up in capacity utilization and recovery in demand. Hence, it can be estimated to see an upside growth of 15% from CMP of Rs1,354 over a period of 1 year.
Apollo is ranked as one of the leading private sector healthcare services providers. Apollo runs two businesses, hospitals, and pharmacies. it can be forecasted to see an upside of 17% from CMP of Rs1125 over a period of 1 year.
Now, we will move forward to another list which is recommended by the Moneycontrol:
Our finance minister gave tax rebate and for this reason, the customer-oriented stocks get beneficiated.
Negatively Impacted Stocks
There are the negatively impacted stocks after the budget session:
Top Most Sectors Recommendation by Economics Times:
- Capital Goods
- Health Care
So, there are some of the Top Most Post Budget Stock Picks 2019. Though the interim budget deals with the minor changes, stocks market may get heavily impacted by the budget. Hence, it is expected to play safely and wisely in the stock market. The present market could be a volatile one. It is advisable to go through the key areas of Interim budget 2019 carefully. Then go for investment planning in the market. Investors should be cautious regarding the ups and down sessions of the post-budget impact.
Ankita is a graduate in English language and she has also done her MBA from the Calcutta University. She has a high knack in the stock markets. An experienced stock market content writer Ankita is also trading on her own account. Ankita is also preparing for the NISM Research Analyst Series XV examination seriously.