The Union Budget 2018-2019 on increased spending on affordable housing, infrastructure, and rural economy along with no major changes in the direct taxation structure would be sufficient to sustain momentum in the markets, suggest experts.

"...The government might not be able to meet the fiscal deficit target for FY18 but analysts' expect the government to revert to fiscal consolidation roadmap with a target of 3.2 percent for 2018-19. Fiscal slippage in 2017-2018 with a revised figure for the gross fiscal deficit at around 3.5 percent as against the estimate of 3.2 percent given in the budget. However, the government is likely to revert to fiscal consolidation roadmap with a target of 3.2 percent for 2018-2019.
The Union Budget 2018-2019 on increased spending on affordable housing, infrastructure, and rural economy along with no major changes in the direct taxation structure would be sufficient to sustain momentum in the markets, suggest experts.

 "Given the expected focus areas and stated policy priorities of the government, the sectors and companies that clearly stand to gain from the Union Budget 2018-2019 are: consumer (rural demand-driven and consumer discretionary), construction companies, retail and defence companies," said a Sharekhan report..."
"...Other sectors which we will be eyeing would be Consumer Durables as a reduction in GST on household items will be a positive for this industry and also Logistics would benefit indirectly if spending on Infrastructure goes up," he said.
We have collated a list of top 20 stocks which will remain in focus on the Budget Day across these 5 sectors:

 Sector: Automobile

Demand recovery is underway across segments, after experiencing multiple shocks such as demonetization, BS3 to BS4 transition, and GST, among others over the last 12 months...''

Sector: Capital Goods & Infrastructure

"...The analyst expects an increase in allocation towards capital spending in the budget. An increase in budgeted spending would be positive for companies as it implies higher ordering and execution. Railway Budget will not be presented as a different Budget but analysts' expect the government to increase budgetary support and, in turn, spending by the Indian Railways. Motilal Oswal expects the allocation to increase by 10 percent for FY19.
"...Increased budgetary support for the road is expected to help maintain continuity in ordering and execution. Motilal Oswal expects an increase of 10-15% in budgetary allocation..."

 Sector: Agriculture

Brokerage houses expect the short-term farm loan limit to be increased to Rs 5 lakh from Rs 3 lakh currently..."
"...There are also talks about reforms which are targeted at improving farm income/farm yields such as electronic linkage of mandi's under e-NAM, higher MSPs and the likely increase in rural allocations..."

 Sector: Cement

 "...Analysts are expecting to levy basic customs duty on cement imports in India or import duties on raw material such as coal, petcoke, limestone, and gypsum be abolished...'' Higher allocation in the infrastructure sector especially roads, ports, and metros will also be positive for the cement sector.

The authors of the article: Kshitij Anand.
 This article was originally published in Moneycontrol.