Axis Direct Identifies 26 Stocks Across 8 Sectors as Budget FY27 Beneficiaries
Axis Direct has identified 26 stocks across eight sectors as potential Union Budget FY27 beneficiaries, with fiscal deficit projected at 4.20-4.40% of GDP. Key picks include SBI and HDFC Bank in financials, UltraTech Cement in infrastructure, Divi's Labs and Sun Pharma in pharma, Bharti Airtel in telecom, and Maruti Suzuki in auto sector. The budget is expected to allocate ₹12-13 lakh crore towards capital expenditure, marking a 10-15% year-on-year increase focused on infrastructure development and green energy initiatives.
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Axis Direct has identified 26 stocks across eight sectors as potential beneficiaries of the upcoming Union Budget FY27, expecting the government to balance growth support with macro stability amid challenging external conditions. The domestic brokerage projects the fiscal deficit at 4.20-4.40% of GDP for FY27, emphasizing that achieving this target would signal strong policy credibility to investors while containing government borrowing and keeping inflation expectations anchored.
Financial Sector Outlook
The financial sector is expected to benefit from continued government thrust on capital expenditure, which could trigger corporate credit growth for banks. Axis Direct has identified four key banking stocks positioned to capitalize on this trend:
| Bank | Expected Benefit |
|---|---|
| SBI | Corporate credit growth from capex push |
| HDFC Bank | Enhanced lending opportunities |
| Bank of Baroda | Credit expansion potential |
| ICICI Bank | Corporate banking growth |
Infrastructure and Cement Companies
The infrastructure sector anticipates a 10-15% increase in capital expenditure allocation, with firm focus on infrastructure development and continued momentum under the National Infrastructure Pipeline. This development is expected to benefit cement manufacturers significantly:
- UltraTech Cement: Positioned for infrastructure demand growth
- Dalmia Bharat: Expected to benefit from increased construction activity
- JK Cement: Infrastructure spending beneficiary
- Ambuja Cement: Capex-driven demand potential
Healthcare and Pharmaceutical Sector
The pharma and healthcare industry expects incremental policy and fiscal support to strengthen domestic manufacturing and reduce import dependence. Axis Direct's preferred picks include:
| Company | Sector Focus |
|---|---|
| Divi's Labs | API manufacturing |
| Syngene International | Contract research |
| Sun Pharma | Domestic pharmaceutical |
| Apollo Hospitals | Healthcare services |
Telecom and Hospitality Sectors
The telecom industry expects a significant reduction in licence fees from the current 3.00% to 0.50-1.00% of adjusted gross revenue. Bharti Airtel stands to gain substantially from this potential policy change. In hospitality, the hotel sector anticipates infrastructure status for projects in tier 2 and tier 3 cities, with Indian Hotels and Chalet Hotels identified as primary beneficiaries.
Metals, Auto, and Chemical Sectors
The metals and mining sector expects new policies to reduce import reliance by boosting domestic production of silver, copper, and zinc. Key beneficiaries include Tata Steel, NALCO, SAIL, and Hindalco. The auto sector could benefit from income tax relief up to ₹12.00 lakh, supporting demand for mass-market vehicles:
- Maruti Suzuki: Entry-level passenger vehicles
- TVS Motor: Two-wheeler segment
- Eicher Motors: Commercial vehicles
- Bajaj Auto: Two-wheeler market
- Ashok Leyland: Commercial vehicle segment
For chemicals and fertilizers, Dhanuka Agritech and PI Industries are positioned to benefit from uniform taxation policies and streamlined licensing frameworks.
Government Capital Expenditure Strategy
The Union Budget FY27 is expected to allocate ₹12-13 lakh crore towards capital expenditure, representing a 10-15% year-on-year increase. Key focus areas include roads, railways, logistics infrastructure, defence, urban infrastructure, power transmission, renewables, and green energy. The Reserve Bank of India's dividend transfer is expected to provide crucial fiscal support, with elevated expectations following the record surplus transfer in FY26.
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