Here is Bajaj Broking’s wishlist for the Union Budget – FY 2025-26 along with pre-budget stock picks.
Economy and Policy Expectations
- Focus on Simplified Taxation: Recommendations include further rationalization of long-term capital gains tax, reduction in Securities Transaction Tax (STT), and streamlined rules for financial instruments to enhance market attractiveness.
- Sectoral Investments: Anticipated higher allocations for infrastructure, defence, and renewable energy sectors, complemented by potential enhancements to the Production-Linked Incentive (PLI) scheme.
- Boost to Disposable Incomes: Adjustments to income tax policies for middle-class households are expected to stimulate discretionary consumption.
Sector-Specific Insights
- Banking & NBFCs: Possible introduction of microfinance credit guarantees and reduction in loan limits under the SARFAESI Act.
- Auto Sector: Policies under PM E-Drive and Auto PLI are likely to benefit localization and adoption of electric vehicles.
- Pharma & Healthcare: Enhanced R&D support and funding for health initiatives, such as Ayushman Bharat.
- Consumer Sector: Anticipated tax relief measures for lower- and middle-income households, boosting consumption-driven initiatives.
Pre Budget Stock Picks for 2025
Bajaj Broking research team has identified promising investment opportunities in sectors poised for growth. Key recommendations include:
- Apeejay Surrendra Park Hotels Ltd: Target ₹235, offering a 21% upside within 12 months.
- DCX Systems Limited: Target ₹449, with a potential 24% upside.
- Ion Exchange (India): Target ₹780, expected to deliver a 23% upside.
The team expects the upcoming budget to allocate significant resources to certain key sectors. Accordingly, we have identified stocks among sectors that demonstrate strong fundamentals and robust technical indicators, making them promising investment opportunities.
