The Union Budget 2025, delivered on February 1, 2025, has introduced significant allocations and reforms across various sectors of the Indian economy.
1. Agriculture Sector
- Prime Minister Dhan-Dhaanya Krishi Yojana – Developing Agri Districts Programme
- This program aims to enhance agricultural productivity, promote crop diversification, improve post-harvest storage, irrigation, and credit access in 100 districts. The budget speech mentions it is likely to help 1.7 crore farmers.
- Rashtriya Krishi Vikas Yojna
- This scheme aims to incentivize states to increase public investment in agriculture and allied sectors, ensuring holistic development and boosting farmers’ incomes. It promotes initiatives like crop diversification, sustainable farming, and Agri-infrastructure development.
- National Mission on Natural Farming
- This mission focuses on promoting sustainable farming practices through chemical-free and eco-friendly techniques, such as organic and natural farming, to improve soil health, biodiversity, and farmer welfare.
- Krishionnati Yojana
- A comprehensive umbrella scheme consisting of multiple sub-programs, it seeks to modernize and transform agriculture through innovation, technology dissemination, and strengthening value chains, enhancing productivity and profitability for farmers.
- National Mission on High Yielding Seeds
- This mission aims to strengthen research, develop climate-resilient seeds, and increase commercial availability.
- Mission for Cotton Productivity
- This five-year mission aims to improve cotton productivity and promote extra-long staple cotton.
- Mission for Aatmanirbharta in Pulses
- This six-year mission focuses on Tur, Urad, and Masoor pulses.
- Comprehensive Programme for Vegetables & Fruits
- This program aims to promote production, efficient supply, processing, and better prices for farmers.
- Makhana Board in Bihar
- This board will be established to improve production, processing, value addition, and marketing of Makhana
- Enhanced Credit through KCC
- The loan limit under the Modified Interest Subvention Scheme will be enhanced from ₹3 lakh to ₹5 lakh for Kisan Credit Cards.
- Urea Plant in Assam
- A new urea plant with an annual capacity of 12.7 lakh metric tons will be set up at Namrup, Assam.
Potentially Positive Stocks:
- The Prime Minister Dhan-Dhaanya Krishi Yojana, with its focus on enhancing agricultural productivity, promoting sustainable farming practices, and supporting rural development, is poised to positively impact several companies in the agricultural sector.
- Companies like Rallis India Ltd (RALLIS), Excel Industries Ltd (EXCELINDUS), Dhanuka Agritech Ltd (DHANUKA), UPL Ltd (UPL), Bayer CropScience Ltd (BAYERCROP), Punjab Chemicals & Crop Protection Ltd (PUNJABCHEM), PI Industries Ltd (PIIND), NACL Industries Ltd (NACLIND), Bhagiradha Chemicals & Industries Ltd (BHAGCHEM), Sumitomo Chemical India Ltd (SUMICHEM), Astec Lifesciences Ltd (ASTEC), and Sikko Industries Ltd (SIKKO) are likely to benefit from various initiatives under this scheme.
- The increased loan limits for Kisan Credit Cards, focus on crop diversification, and emphasis on high-yield seeds and cotton productivity missions are expected to drive demand for agrochemicals, crop protection products, and agricultural inputs. Additionally, companies offering products or services related to skilling, investment, and technology in rural areas may find new growth opportunities. The focus on organic fertilizers further positions companies like Sikko Industries Ltd to capitalize on the evolving agricultural landscape. Overall, the Yojana’s comprehensive approach to agricultural development is set to create favorable conditions for growth across these key industry players.
Mixed Impact Stocks:
- Companies involved in tea production and exports, such as JAYSREETEA, NORBTEAEXP, MCLEODRUSS, DTIL, UNITEDTEA, GROBTEA, and PKTEA, will be influenced by tea-related policies, including those concerning cultivation, export duties, and sustainability regulations.
- Firms focusing on coffee, like TATACOFFEE and CCL, will be affected by coffee-specific policies, covering aspects such as trade agreements, quality standards, and environmental guidelines.
- Tata Consumer Products Ltd, with its diversified portfolio spanning tea, coffee, and food products, will experience a mixed impact based on the range of product-related policies.
2. Automobile Sector
- PM-eBus Sewa: A scheme for augmenting city bus services mentioned under Urban Sector Reforms but it is part of the Urban Challenge Fund with a proposed outlay of ₹1 lakh crore.
- Electric Vehicles (EVs): Multiple mentions throughout the budget related to promoting EVs, including tax exemptions for capital goods related to EV battery manufacturing and a focus on clean tech manufacturing for EV batteries.
Potentially Positive Stocks:
- Amara Raja Energy & Mobility Ltd (ARE&M): Focus on clean tech manufacturing and EV batteries could benefit their battery business.
- Autolite (India) Ltd (AUTOLITIND): Tax exemptions for capital goods related to EV battery and mobile phone battery manufacturing could benefit them.
- Force Motors Ltd (FORCEMOT): Could benefit from PM-eBus Sewa if they manufacture electric buses.
- Exide Industries Ltd (EXIDEIND): Similar to Amara Raja, the focus on clean tech manufacturing and EV batteries could benefit their battery business. Tax exemptions for capital goods related to EV and mobile phone battery manufacturing could also be beneficial.
- Hero MotoCorp Ltd (HEROMOTOCO): Could benefit from increased demand for electric two-wheelers.
- Ashok Leyland Ltd (ASHOKLEY): Could benefit from PM-eBus Sewa if they manufacture electric buses. Defense vehicle production may also see indirect benefits from increased defense spending.
- Escorts Kubota Ltd (ESCORTS): Could see positive impacts from increased infrastructure spending, especially in construction equipment.
- Tata Motors Ltd (TATAMOTORS): stands to gain from the push for electric buses through the PM-eBus Sewa initiative and the overall surge in EV demand.
- Maruti Suzuki India Ltd (MARUTI): It may also see growth in its electric vehicle offerings, capitalizing on the rising demand for EVs.
- TVS Motor Company Ltd (TVSMOTOR): It is positioned to benefit from the increasing demand for electric scooters, aligning with the shift toward more sustainable mobility solutions.
- Urja Global Ltd (URJA): It stands as a direct beneficiary of the expanding electric vehicle and battery market, positioning itself well in the evolving industry landscape.
Mixed Impact Stocks:
- Most other auto ancillary companies: The impact on most auto ancillary companies will depend on the specific components they manufacture and the overall health of the automobile sector. The budget’s broader focus on infrastructure and manufacturing could indirectly benefit some of these companies.
- Tire companies (MRF, Apollo Tyres, CEAT, Balkrishna Industries, JK Tyre & Industries, Birla Tyres, TVS Srichakra): Growth will depend on the overall automobile sector’s performance.
The rationale is based on aligning the companies’ products and services with the budget’s focus areas. Companies involved in electric vehicles, batteries, and related technologies are expected to benefit the most. The impact on traditional automobile manufacturers and ancillary companies will depend on their ability to adapt to the changing market landscape and the overall economic growth driven by the budget proposals.
3. Chemicals Sector
- Clean Tech Manufacturing: Part of the broader Manufacturing Mission, this initiative supports domestic value addition and building an ecosystem for solar PV cells, EV batteries, and other clean technologies. The Manufacturing Mission has a planned outlay.
- Specialty Chemicals: While not a specific scheme, the budget emphasizes promoting domestic manufacturing and value addition, which could indirectly benefit specialty chemical companies. Several specific proposals, such as the relief on import of drugs/medicines and support for critical minerals, could impact specific sub-sectors within specialty chemicals.
- Fertilizers: The expenditure profile includes allocations for Urea Subsidy and Nutrient Based Subsidy (Demand No. 6), which directly impact fertilizer companies. The budget also mentions a policy on the promotion of organic fertilizers.
Potentially Positive Stocks:
- Companies involved in clean technologies (e.g., EV batteries, solar PV cells): These companies, if any in your list, could benefit from the Clean Tech Manufacturing initiative. This includes companies producing raw materials or components for these technologies. For example: Tata Power Company Limited, Adani Green Energy Limited, KPI Green Energy Limited, Greaves Cotton Limited, Suzlon Energy Limited, Borosil Renewables Limited.
- Specialty chemical companies aligned with import substitution or export promotion: Companies producing chemicals used in pharmaceuticals, agrochemicals, or other sectors where the budget aims to boost domestic production or exports could see increased demand. For eg: Aarti Industries, Vinati Organics, Navin Fluorine International, Fineotex Chemical, Laxmi Organic Industries.
- Companies benefiting from reduced import duties: If any of the companies produce goods for which import duties have been reduced (e.g., certain drugs/medicines, critical minerals), they could benefit from increased competitiveness.
- Companies producing organic fertilizers: These companies could benefit from the policy on promoting organic fertilizers. For eg: Coromandel International Limited, National Fertilizers Limited, Mangalore Chemicals & Fertilizers Limited.
Mixed Impact Stocks:
- Fertilizer companies: The impact on fertilizer companies will depend on the specifics of the Urea and Nutrient Based Subsidy schemes and their product mix. Companies focused on urea may see different impacts than those focused on other fertilizers.
- Companies impacted by changes in customs duties: Companies importing raw materials for which duties have been increased may face higher costs, while those importing materials with reduced duties could benefit.
- Potentially Negative Stocks: It’s difficult to identify specific companies that would be negatively impacted without more details on their operations and the specific products they import or export. Companies heavily reliant on importing raw materials for which duties have been increased could face challenges.
The rationale is based on aligning the companies’ activities with the budget’s priorities. Companies involved in clean technologies, import substitution, and export-oriented sectors are likely to benefit.
4. Construction Sector
- Urban Challenge Fund: ₹1 lakh crore allocated to implement proposals for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’, and ‘Water and Sanitation’.
- Pradhan Mantri Awas Yojana (PMAY) – Urban: Part of the Centrally Sponsored Schemes, with an FY 2025-26 budget estimate of ₹19794 crore.
- Infrastructure Development: Broad emphasis on infrastructure development across various sectors, including roads, highways, railways, metros, water supply, and sanitation. Specific allocations are spread across multiple ministries and departments.
Potentially Positive Stocks:
- Cement Companies (e.g., Shree Cement, ACC, Ambuja Cements, Star Cement): Increased spending on housing (PMAY-Urban) and broader infrastructure development should boost cement demand.
Neutral or Mixed Impact:
- Real Estate Developers (Phoenix Mills, Anant Raj, DLF, Godrej Properties, Macrotech Developers, Oberoi Realty, Prestige Estates Projects, J Kumar Infraprojects, Dilip Buildcon): The impact on real estate developers will depend on the specific types of projects they undertake and the overall health of the real estate market. The budget’s focus on urban development could be beneficial.
The rationale is based on the expected increase in construction activity driven by the government’s focus on infrastructure development and urban renewal. Cement companies and construction/EPC companies are likely to be the primary beneficiaries. The impact on real estate developers will be more nuanced and depend on market conditions and the specific segments they operate in.
5. Consumer Goods Sector
- Enhanced spending power of India’s rising middle class: This general aim could lead to increased demand for consumer goods.
- “Make in India” initiative: This ongoing initiative could benefit domestic manufacturers of consumer goods.
- Tax reforms and changes: Changes to direct and indirect taxes could affect consumer spending and company profitability.
- Focus on rural prosperity and resilience: This could increase rural incomes and demand for consumer goods in rural areas.
- Boosting domestic manufacturing and value addition: This general policy could benefit companies producing consumer goods domestically.
- Potentially Positive Stocks:
- Companies focused on discretionary spending (e.g., jewelry, luxury hotels, high-end apparel): These companies could benefit from the expected increase in middle-class spending power. Examples include: Titan, PC Jeweller, Kalyan Jewellers, EIH Associated Hotels, Chalet Hotels, Lemon Tree Hotels, Barbeque-Nation Hospitality, Sapphire Foods India.
- Companies focused on essential consumer goods (e.g., food and dairy products, personal care products): These companies may see a more stable demand, less directly tied to changes in discretionary spending. Examples include: Hindustan Unilever, Britannia Industries, Colgate-Palmolive, Nestle India, Marico, Godrej Consumer Products, Zydus Wellness, Hatsun Agro Product, Parag Milk Foods, Vadilal Industries.
- Companies focused on specific product categories mentioned in the budget (e.g., electric appliances): Companies manufacturing electric appliances like fans, refrigerators, and air conditioners could see increased demand due to rising incomes and the government’s focus on rural electrification. Examples include: Bajaj Electricals, Blue Star, Panasonic Appliances India, Butterfly Gandhimathi Appliances, Epack Durable, Dixon Technologies, HBL Power Systems.
- Companies involved in sugar production: There might be a positive impact on sugar companies like Bajaj Hindusthan Sugar, Balrampur Chini Mills, EID Parry,etc.
- Companies involved in paper and packaging: The impact on paper and packaging companies (e.g., West Coast Paper Mills, Uflex.
Rationale for the positive/negative impact:
The rationale is largely based on general economic trends and consumer behavior. Luxury and discretionary spending is expected to increase with rising middle-class incomes. Companies catering to these segments are likely to benefit. Companies producing essential goods may see more stable, but less spectacular, growth. The impact on other consumer goods companies will depend on various market factors and the specifics of any relevant government policies.
6. Renewable Energy Sector
- Power Sector Reforms: Incentives for electricity distribution reforms and augmentation of intra-state transmission capacity. Additional borrowing of 0.5% of GSDP will be allowed to states contingent on these reforms.
- Nuclear Energy Mission for Viksit Bharat: Outlay of ₹20,000 crore to develop Small Modular Reactors (SMRs). This will be reflected in the budget of the Department of Atomic Energy.
- Support to States for Infrastructure: ₹1.5 lakh crore outlay for 50-year interest-free loans to states for capital expenditure and incentives for reforms. This could indirectly benefit energy projects undertaken by states.
Potentially Positive Stocks:
- Power Generation and Supply Companies (CESC, Tata Power Company, NTPC, JSW Energy, Adani Power, Power Grid Corporation of India, SJVN, NTPC Green): Power sector reforms and increased state infrastructure spending could benefit these companies. Companies involved in renewable energy (solar, wind, hydro) may see additional benefits from the government’s focus on clean energy.
- Cable Companies (KEI Industries, Sterlite Technologies, Tata Communications): Increased infrastructure spending, particularly on power transmission and distribution, could benefit cable manufacturers.
- Companies involved in nuclear energy (e.g., NLC, NTPC, WALCHANNAG): The Nuclear Energy Mission could create opportunities for companies involved in the nuclear energy sector.
Neutral or Mixed Impact:
Oil Drilling and Exploration Companies (Jindal Drilling & Industries, Oil India, Aban Offshore): The budget doesn’t have specific policies directly targeting oil drilling and exploration. The impact will depend on global oil prices and demand.
Potentially Negative Impact:
Dry Cell Battery Companies (Indo National, Eveready Industries India): The increasing focus on EVs and other clean technologies could negatively impact demand for traditional dry cell batteries in the long term.
Rationale for the positive/negative impact:
The rationale is based on the alignment of the companies’ businesses with the government’s stated priorities. Power generation and transmission companies are likely to benefit from power sector reforms and infrastructure spending. Renewable energy companies could see additional tailwinds. The impact on other energy companies will depend on market factors and the specifics of any relevant policies. The long-term shift towards clean energy could pose challenges for companies focused on traditional energy sources.
7. Financial Services Sector
- Financial Sector Reforms and Development: Several reforms are mentioned, including increasing the FDI limit in the insurance sector, expanding services of India Post Payments Bank, establishing a Partial Credit Enhancement Facility by NABFID, and developing a Grameen Credit Score. These reforms will impact different parts of the financial services sector.
- Support to NCDC: The government will provide support to the National Cooperative Development Corporation (NCDC) for its lending operations in the cooperative sector.
- Revamp of PM SVANidhi: The scheme for street vendors will be revamped with enhanced loans, UPI-linked credit cards, and capacity-building support.
- Social Security Scheme for Welfare of Online Platform Workers: Provision of identity cards, e-Shram portal registration, and healthcare under PM Jan Arogya Yojana for gig workers.
- Financial Sector Development Council (FSDC) Mechanism: A mechanism will be set up to evaluate the impact of financial regulations.
Potentially Positive Stocks:
- Housing Finance Companies (LIC Housing Finance, Can Fin Homes, PNB Housing Finance, Home First Finance Company India): The increased focus on affordable housing and initiatives like the revamped PM SVANidhi could indirectly benefit housing finance companies by increasing demand for home loans. The Partial Credit Enhancement Facility by NABFID could also improve their access to capital.
- Banks (State Bank of India, HDFC Bank, Kotak Mahindra Bank, IndusInd Bank, Axis Bank, Yes Bank, IDFC First Bank, Bandhan Bank, Utkarsh Small Finance Bank): The overall economic growth spurred by the budget could lead to increased credit demand and business for banks. The expansion of India Post Payments Bank’s services could create competition in some areas but also potentially lead to partnerships. The Grameen Credit Score could help banks better assess the creditworthiness of rural borrowers.
- Insurance Companies (ICICI Prudential Life Insurance, SBI Life Insurance, Star Health & Allied Insurance, Max Financial Services): Increasing the FDI limit in the insurance sector could lead to increased capital inflows and growth for insurance companies. The focus on social security for gig workers could also increase demand for health insurance products.
- NBFCs focused on MSME lending (Bajaj Finance, Shriram Finance, Muthoot Capital Services, Muthoot Microfin, Cholamandalam Investment & Finance Company): The focus on supporting MSMEs and enhancing credit access could benefit NBFCs specializing in this segment.
Potentially Mixed Impact:
Investment Companies/NBFCs with diverse portfolios (Kirloskar Industries, Cholamandalam Financial Holdings, Rane Holdings, Bajaj Holdings & Investment, Tata Investment Corporation, PNB Gilts, IDFC, Mahindra & Mahindra Financial Services, Smartlink Holdings, SIL Investments, Welspun Investments & Commercials, Pilani Investment & Industries Corporation, Vardhman Holdings, Dhunseri Investments, Ujjivan Financial Services,TCI Finance, VLS Finance, Industrial Investment Trust, Maharashtra Scooters, GFL): The impact on these companies will depend on their specific investment strategies and the performance of the sectors they are exposed to. The budget’s broader economic policies could have both positive and negative effects on their portfolios.
Potentially Negative Impact:
NBFCs facing challenges (e.g., Reliance Capital (under CIRP), SREI Infrastructure Finance (under liquidation)): Companies already facing financial difficulties may find it harder to benefit from the budget’s positive initiatives.
Rationale for the positive/negative impact:
The rationale is based on the expected impact of the budget’s financial sector reforms and broader economic policies. Housing finance companies and banks are likely to see positive effects from increased housing and credit demand.. NBFCs specializing in MSME lending could see increased business opportunities. The impact on investment companies and stockbrokers will be more market-dependent. Companies already facing financial difficulties may struggle to capitalize on the budget’s positive initiatives.
8. Industrial Manufacturing Sector
- Manufacturing Mission – Furthering “Make in India”: Focus on providing policy support, execution roadmaps, and a governance framework for industrial growth. While a general mission, it could indirectly benefit many industrial manufacturing companies.
- Clean Tech Manufacturing: Support for domestic value addition and ecosystem development for solar PV cells, EV batteries, etc. This will benefit companies in related sub-sectors.
Potentially Positive Stocks stocks:
- Companies involved in automation and electrification (ABB India, CG Power & Industrial Solutions, Bharat Heavy Electricals, Siemens, Bharat Bijlee, Lakshmi Electrical Control Systems, Salzer Electronics, Eon Electric, HPL Electric & Power, V-Guard Industries, Igarashi Motors India, Websol Energy System, Aartech Solonics, Servotech Power Systems, Hitachi Energy India, Triveni Turbine, Genus Power Infrastructures, Honeywell Automation India, Polycab India, Dynamic Cables): These companies could benefit from the “Make in India” initiative and potentially from increased demand for automation and electrification solutions in various sectors.
- Companies involved in renewable energy equipment manufacturing (e.g., Suzlon Energy, Inox Wind, Swelect Energy Systems, Solex Energy, Bright Solar, Indosolar): The focus on clean tech manufacturing could benefit these companies.
- Companies manufacturing electric motors (e.g., Kirloskar Electric Company): Could see increased demand due to the focus on electric vehicles and other applications.
- Companies involved in EV charging infrastructure (e.g., Exicom Tele-Systems): The push for EVs could benefit these companies.
Potentially Mixed Impact stocks:
- Refineries (Hindustan Petroleum Corporation, Mangalore Refinery and Petrochemicals, Chennai Petroleum Corporation, Reliance Industries, Bharat Petroleum Corporation, Indian Oil Corporation, Gandhar Oil Refinery): The impact on refineries will depend on global oil prices, demand, and any specific government policies related to the refining sector.
- Other Industrial Manufacturing Companies (Esab India, Ingersoll-Rand, Ion Exchange, Kirloskar Brothers, KSB, Swaraj Engines, Thermax, SKF India, Cummins India, Premier, Grindwell Norton, Modison, Walchandnagar Industries, Graphite India, HEG, Carborundum Universal, Wendt India, Pitti Engineering): The impact on these companies will depend on the specific sub-sectors they operate in, their customer base, and the broader economic environment. The “Make in India” initiative could provide some general support, but the lack of targeted policies for specific sub-sectors makes it difficult to assess the precise impact.
Rationale for the positive/negative impact:
The rationale is based on the potential benefits of the “Make in India” initiative and the focus on clean tech manufacturing. Companies involved in automation, electrification, and renewable energy equipment are likely to see the most positive effects. The impact on other industrial manufacturing companies will depend on their specific products and markets. The budget’s broader focus on infrastructure development and economic growth could indirectly benefit many companies in this sector.
9. IT Sector Sector
- Investment in People, Economy, and Innovation: ₹20,000 crore allocated for a private sector-driven research, development, and innovation initiative. This could benefit IT companies engaged in R&D.
- National Geospatial Mission: Development of geospatial infrastructure and data using PM Gati Shakti. This could benefit IT companies specializing in geospatial technologies.
- Bharatiya Bhasha Pustak Scheme: Provision of digital Indian language books for education. This could create opportunities for IT companies involved in digitization and educational content development.
- Centre of Excellence in AI for Education: ₹500 crore outlay for a Centre of Excellence in AI for education. This could benefit IT companies specializing in AI and education technology.
- Support for integration with Global Supply Chains: Support for developing domestic manufacturing capacities for integration with global supply chains. This could indirectly benefit IT companies providing solutions for supply chain management.
- National Framework for GCC: A framework to promote Global Capability Centres in Tier 2 cities. This could benefit IT companies looking to expand in these cities.
Potentially Positive Stocks:
- IT Services and Consulting Companies (Infosys, Wipro, HCL Technologies, Tech Mahindra, Mphasis, Persistent Systems, Mindtree, Tata Consultancy Services, Coforge, LTIMindtree, 3i Infotech, Kellton Tech Solutions, Aurionpro Solutions, Infinite Computer Solutions, Onward Technologies, Trigyn Technologies, Mindteck, Computech International, Polaris Consulting & Services, eClerx Services, GSS Infotech, Ace Integrated Solutions, Datamatics Global Services, InfoBeans Technologies, Sasken Technologies, FCS Software Solutions, Xchanging Solutions): These companies could benefit from the increased focus on IT spending, digital transformation, and the government’s initiatives in areas like AI, geospatial technology, and education.
- Companies specializing in AI (e.g., Zensar Technologies, Happiest Minds Technologies, Latent View Analytics): The Centre of Excellence in AI for Education and the broader focus on AI could benefit these companies.
- Companies involved in geospatial technologies (e.g., Genesys International Corporation): The National Geospatial Mission could create opportunities for these companies.
- Companies involved in education technology (e.g., NIIT Learning Systems, Agnite Education, Repro India (through its RAPPELS product), S Chand & Company, Navneet Education (through its Edtech business), Kokuyo Camlin, Linc): The Bharatiya Bhasha Pustak Scheme and the Centre of Excellence in AI for Education could benefit these companies.
- Companies providing e-governance solutions (e.g., Alankit, Spanco, Tera Software, VL E-Governance & IT Solutions, MSTC): Increased government focus on digitalization and e-governance could create opportunities for these companies.
- Companies providing digital payment solutions (e.g., One 97 Communications (Paytm), Fino Payments Bank, Network People Services Technologies, Zaggle Prepaid Ocean Services, DigiSpice Technologies (through its Spice Money segment)): The government’s push for digital transactions could benefit these companies.
- Companies providing cloud computing services (e.g., SecureKloud Technologies, E2E Networks): Increased demand for cloud solutions could benefit these companies.
Potentially Negative Impact:
Companies facing financial difficulties or liquidation (e.g., ICSA (India), Videocon Industries, Zicom Electronic Security Systems): These companies may struggle to benefit from the budget’s positive initiatives.
Rationale for the positive/negative impact:
The rationale is based on the alignment of the companies’ businesses with the government’s focus on IT, digitalization, and specific initiatives like the National Geospatial Mission and the Centre of Excellence in AI for Education. Companies specializing in these areas are likely to see the most positive impacts. The impact on other IT companies will depend on their specific products, services, and target markets. Companies facing financial difficulties may find it challenging to capitalize on the budget’s positive initiatives.
10. Media & Entertainment Sector
- Emphasis on digitalization: The government’s overall push towards digitalization could benefit companies in the digital media and entertainment space.
- Support for Indian languages: The Bharatiya Bhasha Pustak Scheme (digital Indian language books) could indirectly benefit content creators and publishers in Indian languages.
- Investment in innovation: The allocation for research, development, and innovation could benefit companies developing new technologies for the media and entertainment sector.
Potentially Positive Stocks:
- Digital Media and OTT Platforms (e.g., Zee Entertainment Enterprises (through its digital platforms), TV Today Network (through its digital products), Shemaroo Entertainment (through ShemarooMe), Balaji Telefilms (through ALTT), PVR INOX (through its OTT offerings), Dish TV India (through Watcho OTT), Network 18 Media & Investments (through Voot, etc.), TV18 Broadcast (through Voot, JioCinema), HT Media (through its digital platforms), DB Corp (through its digital business), Music Broadcast (through its digital presence), Entertainment Network (India) (through its digital platforms)): The increasing penetration of digital platforms and the government’s focus on digitalization could benefit these companies.
- Companies involved in regional language content (e.g., Sun TV Network, Raj Television Network, TV Vision, Sambhaav Media, Sandesh): The Bharatiya Bhasha Pustak Scheme and the general support for Indian languages could indirectly benefit these companies.
- Companies involved in gaming and esports (e.g., Nazara Technologies): The growth of the gaming industry and increasing interest in esports could benefit these companies.
Neutral or Mixed Impact:
- Traditional Media Companies (e.g., Deccan Chronicle Holdings, Blue Bird (India), Madhya Pradesh Today Media, New Delhi Television): These companies face challenges from the shift to digital media, and the budget doesn’t offer specific support for traditional print media. Their performance will depend on their ability to adapt to the digital landscape.
- Film Production and Distribution Companies (e.g., Mukta Arts, Eros International Media, Cinevista, B A G Films & Media, Radaan Mediaworks, Tips Films, Sri Adhikari Brothers Television Network, Pyramid Saimira Theatre, DQ Entertainment International, Prime Focus, Lila World Wide, High Ground Enterprise): The budget doesn’t have specific policies directly impacting film production and distribution. Their performance will depend on the film industry’s overall health and consumer preferences.
Rationale for the positive/negative impact:
The rationale is primarily based on the growth of digital media and the government’s emphasis on digitalization. Companies operating in the digital space, especially those focused on OTT platforms and regional language content, are likely to benefit. Traditional media companies face challenges, and their performance will depend on their digital strategies. The impact on other entertainment companies will depend on market factors and consumer behavior. Companies facing financial difficulties may struggle to adapt to the changing landscape.
11. Pharmaceutical Sector
- Relief on import of Drugs/Medicines: Adds 36 life-saving drugs to the list of medicines fully exempted from Basic Customs Duty (BCD) and 6 life-saving medicines to the list attracting a concessional customs duty of 5%. Also applies to bulk drugs used in their manufacture.
- Relief on import of Drugs/Medicines under Patient Assistance Programs: Adds 37 medicines and 13 new patient assistance programs to the list of duty-free imports.
Potentially Positive Stocks:
- Generic drug manufacturers (e.g., Cipla, Dr. Reddy’s Laboratories, Lupin, Torrent Pharmaceuticals, Bliss GVS Pharma, Unichem Laboratories, Ajanta Pharma, Granules India, Ipca Laboratories, Marksans Pharma, Natco Pharma, Bal Pharma, Aurobindo Pharma, Strides Pharma Science, Indoco Remedies, Zydus Lifesciences, FDC, Lincoln Pharmaceuticals, Aarey Drugs & Pharmaceuticals, Kilitch Drugs, Medico Remedies, Brooks Laboratories, Eris Lifesciences, Alembic Pharmaceuticals, Supriya Lifescience): Companies manufacturing generic versions of the drugs added to the duty-free or concessional duty lists could benefit from reduced input costs and increased competitiveness. This is particularly true for companies focused on the listed life-saving drugs or those participating in patient assistance programs.
- Companies manufacturing APIs or intermediates for the listed drugs: These companies could also benefit from reduced import duties on bulk drugs.
Potentially Mixed Impact:
Multinational pharmaceutical companies (e.g., Abbott India, GlaxoSmithkline Pharmaceuticals, Sanofi India, Pfizer, AstraZeneca Pharma India): The impact on multinational companies will depend on whether they manufacture the listed drugs in India and the extent to which they rely on imported ingredients. If they primarily import the finished formulations, they may not see significant benefits.
Potentially Negative Impact:
Companies manufacturing branded versions of the listed drugs (if any): These companies could face increased competition from generic manufacturers benefiting from lower import duties.
Rationale for the positive/negative impact:
The rationale is based on the direct impact of reduced import duties on the cost of manufacturing and the resulting changes in market competitiveness. Generic drug manufacturers are likely to be the primary beneficiaries, as they can offer lower prices due to reduced input costs. The impact on multinational and branded drug manufacturers will depend on their specific product portfolios and manufacturing strategies. It’s important to note that this analysis focuses solely on the impact of the listed drug import duty changes. Other factors, such as market demand, regulatory changes, and research and development pipelines, will also play a role in the performance of individual pharmaceutical companies.
12. Metals Sector
- Manufacturing Mission – Furthering “Make in India”: (See previous responses). This general policy could indirectly benefit metal companies by promoting domestic manufacturing.
- Clean Tech Manufacturing: (See previous responses). This initiative could benefit companies involved in producing metals or components used in clean technologies like EV batteries and solar PV cells.
- Support for Domestic Manufacturing and Value Addition (Critical Minerals): The budget proposes to fully exempt certain critical minerals from Basic Customs Duty (BCD) to support domestic manufacturing. (Page 21, Para 120)
Policy for recovery of critical minerals from tailings: This policy could benefit companies involved in metal extraction and processing.
Potentially Positive Stocks:
- Steel Companies (Tata Steel BSL, JSW Steel, SAIL, Kalyani Steels, Maharashtra Seamless, Oil Country Tubular, Surya Roshni, Jindal Saw, Sunflag Iron & Steel, Mukand, Tata Steel, Bharat Forge, Sarda Energy & Minerals, Prakash Industries, Steel Tubes of India, Precision Metaliks, Venus Pipes & Tubes, Krishna Defence and Allied Industries, Mangalam Worldwide, Sat Industries, Rajnandini Metal, Jainam Ferro Alloys, Euro Panel Products, AIA Engineering): The “Make in India” initiative and the policy for recovery of critical minerals could benefit steel companies, particularly those focused on specialty steels or those using the exempted critical minerals in their production processes.
- Aluminum Companies (Century Extrusions, Hindalco Industries, National Aluminium Company, Maan Aluminium, Parekh Aluminex, Ess Dee Aluminium, Manaksia Aluminium Company): Similar to steel companies, aluminum companies could benefit from the “Make in India” initiative. If any of these companies use the exempted critical minerals, they could see additional benefits.
- Mining and Mineral Processing Companies (Hindustan Zinc, Vedanta, MOIL, Ashapura Minechem, Gujarat Mineral Development Corporation, Resurgere Mines & Minerals India, South West Pinnacle Exploration, KIOCL, NMDC, Sandur Manganese & Iron Ores): The policy for recovery of critical minerals from tailings could benefit these companies. Companies producing minerals exempted from BCD could also see increased demand.
- Companies producing components for clean technologies (if any of the metal companies are involved in this area): The Clean Tech Manufacturing initiative could benefit these companies.
Neutral or Mixed Impact:
Companies involved in castings and forgings (Electrosteel Castings, Amtek Auto, Kalyani Forge, Steelcast, Alicon Castalloy, MM Forgings, Happy Forgings, Tirupati Forge, CIE Automotive India, Nelcast, Synergy Green Industries, PTC Industries): The impact on these companies will depend on the specific end-use industries they serve and the overall health of the manufacturing sector.
Potentially Negative Impact:
None of the listed companies appear to be negatively impacted by the budget proposals.
Rationale for the positive/negative impact:
The rationale is based on the government’s focus on promoting domestic manufacturing, particularly in strategic sectors like steel and aluminum. The exemptions on critical minerals and the policy for their recovery are expected to boost domestic production and reduce reliance on imports. Companies involved in clean technologies could see additional benefits.
13. Services Sector
- Tourism: Support for developing 50 tourist destinations, incentives for states and focus on spiritual tourism.
- Logistics: Transformation of India Post as a public logistics organization.
- Healthcare: Expansion of medical education (10,000 additional seats), day-care cancer centers in district hospitals, strengthening urban livelihoods, support for gig workers’ healthcare and various other health initiatives. Allocations are spread across relevant ministries (Health and Family Welfare, etc.).
- Retail: Revamp of PM SVANidhi for street vendors.
Potentially Positive Stocks:
- Logistics Companies (Aegis Logistics, TCI, TCI Express, Snowman Logistics, Delhivery, VRL Logistics, Mahindra Logistics, Gateway Distriparks, Allcargo Logistics, JITF Infra Logistics, DRS Dilip Roadlines, Ritco Logistics, Global Vectra Helicorp, Jet Freight Logistics, Timescan Logistics, AVG Logistics, Destiny Logistics & Infra, Globe International Carriers, Sical Logistics, North Eastern Carrying Corporation, Future Supply Chain Solutions, TVS Supply Chain Solutions): The transformation of India Post into a logistics player could create competition, but also potential partnerships or opportunities for private logistics companies. The government’s focus on infrastructure development and supply chain improvements could also benefit the sector.
- Hospitals and Healthcare Services (Apollo Hospitals Enterprise, Max Healthcare Institute, Narayana Hrudayalaya, Dr Lal Pathlabs, Thyrocare Technologies, Metropolis Healthcare, Aster DM Healthcare, Krsnaa Diagnostics): Government initiatives to expand medical education, establish cancer centers, and support gig workers’ healthcare could benefit the healthcare sector.
- Hotels and Resorts (Asian Hotels (North), EIH, Indian Hotels Co, EIH Associated Hotels, The Byke Hospitality, Country Club Hospitality & Holidays, Chalet Hotels, Lemon Tree Hotels, Devyani International, Barbeque-Nation Hospitality, Speciality Restaurants, Royal Orchid Hotels, Sapphire Foods India, Jubilant Foodworks): The budget’s focus on tourism, particularly spiritual tourism, could benefit hotels and resorts in relevant locations. The overall increase in consumer spending could also have a positive impact.
- Retail Companies (Trent, Shoppers Stop, V2 Retail, Aditya Birla Fashion & Retail, Future Retail, Spencers Retail, V-Mart Retail, Brandhouse Retails, Praxis Home Retail, Osia Hyper Retail, REI Six Ten Retail): The revamp of the PM SVANidhi scheme and the expected increase in consumer spending could benefit retail companies.
Neutral or Mixed Impact:
- Trading Companies (Aegis Logistics, STCINDIA, Adani Enterprises, MMTC, Vishal Exports Overseas, Uma Exports, Sakuma Exports): The impact on trading companies will depend on the specific products they trade, global commodity prices, and any changes in import/export duties.
- Other Services Companies (NIIT, Blue Dart Express, Career Point, MT Educare, CL Educate, Asian Paints (through its services), Castrol India (through its services), MRF (through its tire services), Ethos (through its repair services), CEAT (through its e-commerce website), Aptech, Zee Learn, Tree House Education & Accessories, R Systems International, Firstsource Solutions, Hinduja Global Solutions, eClerx Services, BLS International Services, BLS E-Services, Medi Assist Healthcare Services, KFin Technologies, Indian Railway Catering & Tourism Corporation): The impact on these companies will depend on the specific services they offer and the broader economic environment.
Potentially Negative Impact:
Companies facing financial difficulties, liquidation, or CIRP (e.g., Future Retail, Jet Airways, Bansal Multiflex, LEEL Electricals, Zicom Electronic Security Systems, Asian Hotels (West), Videocon Industries, C & C Constructions): These companies may struggle to benefit from positive trends in the sector.
14. Telecom Sector
- BharatNet Project: Providing broadband connectivity to government secondary schools and primary health centers in rural areas. This project relies on telecom infrastructure.
- India Post Transformation: Transforming India Post into a logistics organization and expanding its digital services could involve leveraging or expanding telecom infrastructure.
- Digitalization of various government processes: This broader push towards digitalization could increase demand for telecom services.
Potentially Positive Stocks:
- Telecom Service Providers (Mahanagar Telephone Nigam, GTL, Tata Communications, Vodafone Idea, Bharti Airtel, Reliance Communications, Railtel Corporation of India, Hathway Cable & Datacom, Uniinfo Telecom Services, OnMobile Global, Tata Teleservices (Maharashtra)): These companies could benefit indirectly from the BharatNet project, the digitalization of government processes, and potentially from India Post’s transformation if it involves increased telecom infrastructure needs. Companies focused on rural areas or government services may see the most significant benefits.
- Telecom Equipment Manufacturers (ITI, Nelco, GTL Infrastructure, Tejas Networks, Kavveri Telecom Products, Nu Tek India, Indus Towers): The BharatNet project and potential expansion of telecom infrastructure by India Post could create demand for telecom equipment.
Rationale for the positive/negative impact:
The rationale is based on the potential indirect benefits of the government’s digital infrastructure and connectivity initiatives. Telecom service providers and equipment manufacturers could see increased demand for their services and products in rural areas and for government projects.
15. Textiles Sector
- Boosting domestic manufacturing and value addition: This general policy could benefit domestic textile manufacturers.
- Promoting exports: The Export Promotion Mission could benefit textile exporters.
- Focus on the traditional textile sector: The Mission for Cotton Productivity aims to support the traditional textile sector.
Potentially Positive Stocks:
- Companies involved in cotton production or processing (e.g., Bombay Dyeing & Manufacturing Company, Indo Rama Synthetics, Rallis India, Bayer CropScience).
- Textile exporters (e.g., Most of the listed textile companies, especially those with a focus on exports): The Export Promotion Mission and the general emphasis on promoting exports could benefit these companies. This includes companies involved in yarn, fabric, and garment manufacturing and export.
Neutral or Mixed Impact:
- Most textile companies: The overall impact on most textile companies will depend on factors such as raw material prices, global demand, and competition. The budget’s broader focus on manufacturing and exports could provide some support, but the lack of textile-specific policies makes it difficult to assess the precise impact.
- Retailers of textile products (e.g., Shoppers Stop, Aditya Birla Fashion & Retail, Future Retail, Cantabil Retail India, Metro Brands, Khadim India, Relaxo Footwears, Campus Activewear,): The impact on retailers will depend on consumer spending and the overall health of the retail sector.
Rationale for the positive/negative impact:
The rationale is based on the potential indirect benefits of the government’s broader policies on manufacturing and exports. Companies involved in cotton production, textile exports, and the traditional textile sector are most likely to see positive impacts. The impact on other textile companies will depend on market conditions and their ability to compete. Companies facing financial difficulties may face additional challenges.