HOUSING
The government is set to introduce a housing scheme specifically designed for the middle class, facilitating their ability to purchase or construct their own homes. The emphasis on the rural housing programme is expected to yield numerous positive effects on the economy, given the interconnectedness of various ancillary industries with the housing sector. This initiative is poised to stimulate growth in the country’s housing sector and the home loan market. Companies such as HUDCO, LIC Housing Finance, PNB Housing, Aptus Value Housing, and NBCC are among those likely to benefit from this scheme.
RAILWAYS
The railway sector has received substantial backing with the introduction of three new corridors: the energy, mineral & cement corridor, port connectivity corridor, and high-traffic density corridor. In a further positive development, the finance minister announced the conversion of 40,000 normal bogies to Vande Bharat standard, anticipating a favourable influence on the sector. Companies engaged in manufacturing of Vande Bharat trains, such as Texmaco Rail, Jupiter Wagons, Titagarh Rail, Siemens, and Rail Vikas Nigam, among others, are poised to benefit from these initiatives.
MICROFINANCE
The government is set to raise the target for the Lakhpati Didi Scheme from the current 20 million to 30 million. This adjustment is expected to have a positive impact on the rural economy and increase the credit demand for microfinanciers. This empowerment initiative not only stimulates economic growth in rural areas but also contributes to the rising credit demand for microfinance institutions. Stocks such as ESAF Small Fin Bank, CreditAccess Grameen, Ujjivan Financial Services, Equitas Small Fin Bank, and Fusion Micro are among those that could potentially see positive impact in the medium term. ENERGY
The finance minister announced that approximately 10 million households will receive 300 units of free electricity under the rooftop solar scheme. To facilitate the adoption of the rooftop solar programme, the government plans to involve state-run power companies, including NTPC, NHPC, Power Grid, and SJVN. This collaboration aims to bolster efforts in encouraging households to embrace rooftop solar installations. Stocks like Tata Power, Borosil Renewable, Waaree Renewables, Websol Energy Systems, IREDA and Sterling & Wilson are some of the beneficiaries.TOURISM
The budget has a focus on promoting tourism by incentivising states to develop tourism destinations, thereby creating local opportunities. States will be granted interest-free loans to facilitate promotion of tourism in their respective areas. These initiatives are anticipated to be advantageous for companies within the travel, tourism, and hospitality sectors. Hotels, IRCTC, EaseMyTrip, Yatra Online, and Mahindra Holidays are likely to be highlighted as potential beneficiaries of these measures.DEFENCE
The government raised allocations for the defence sector in the interim budget with its aim to strengthen national security and boost local procurement. Of the total capital outlay of Rs 11.11 lakh crore, the defence sector has been allocated Rs 6.2 lakh crore, an increase of 4.4% from the FY24 budgeted allocation. HAL, Bharat Dynamics, Bharat Forge, Bharat Electronics, Data Patterns, and Astra Microwave can be some of the beneficiaries.
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