InvestorQ : Which sectors are likely to benefit from the Union Budget 2020?
Angel dcosta made post

Which sectors are likely to benefit from the Union Budget 2020?

Answer
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7 months ago


Surprisingly, there are quite a few sectors that are also likely to benefit from the Union Budget 2020. Let us talk about a few such sectors.

Firstly, this budget is positive for IT companies. IT companies surely have reasons to celebrate in this budget. The proposal to set up data centre parks on the lines of STPs opens up a huge window for the IT companies. In addition, the IT and education companies are to benefit from the recent plan to expand the training franchise for apprenticeships at the 100 leading training institutions. The IT stocks could benefit from convergence of hardware, software and learning.

Secondly, this budget is also positive for the consumption theme. FMCG stocks have done extremely well post the budget because the dual tax regime is clearly an incentive to reduce saving and increase spending. That is likely to have a multiplier effect on the consumption story. Most of these tax cuts are targeted at the lower to middle income groups with a high propensity to consume. That could be a big boost to the FMCG and consumer durables.

Finally, there could be another beneficiary in the extended agri theme. The budget has laid out mega plans for the fisheries sector. Apart from creating 500 fish FPOs, the budget has also spoken about a big boost to fisheries exports to a level of Rs.1 trillion per year. This can be a direct positive for aqua and feed companies. At an indirect level, this is also a major positive for the agri themes like tractors, hybrid seeds, farm equipment, drip systems etc