Short Description
Flat opening expected for Indian markets after a Budget-driven selloff. Key stocks in focus: Defence, Pharma, Infrastructure, and Green Energy sectors poised for action.
Read Time
4 Minutes 30 Seconds
**Main Article
Indian markets are bracing for a cautious start after a special Budget trading session delivered a surprise that rattled investors. Finance Minister Nirmala Sitharaman announced a hike in the Securities Transaction Tax (STT) on futures and options (F&O), triggering a sharp selloff. As the markets digest this move, investor focus shifts to a deluge of Q3 earnings reports and specific sectors that received significant attention—and funding—in the Union Budget.
Several high-potential sectors emerged as clear winners from the budgetary allocations. Defence stocks like Bharat Dynamics and Bharat Electronics are in the spotlight following a substantial 15% increase in defence outlay to nearly ₹7.85 lakh crore, underscoring the government’s commitment to military modernization. Similarly, Pharma stocks received a major boost with the announcement of a ₹10,000 crore ‘Biopharma Shakti’ mission over five years, aiming to position India as a global biopharma hub. The Infrastructure sector also stands to gain from a raised capital expenditure target and new funding mechanisms for Tier-2 and Tier-3 cities.
Beyond traditional sectors, the Budget laid out a visionary roadmap for future industries. A proposed 20-year tax holiday is set to ignite investments in Data Centre stocks, targeting to attract global cloud giants and over $200 billion in investments. The Green Energy sector received continued support with extended customs duty exemptions to accelerate grid-scale battery storage, benefiting companies in the renewable energy ecosystem. Furthermore, significant outlays for electronics manufacturing and new mega textile parks highlight the government’s push towards Atmanirbhar Bharat (self-reliant India), putting electronics and textile manufacturers directly in focus.
Short Summary
The Indian equity market faces headwinds from a higher STT but finds tailwinds in a growth-oriented Union Budget. Key allocations have put Defence stocks, Pharma stocks, and Infrastructure companies in the limelight. Structural initiatives for Data Centre stocks and Green Energy sectors outline a long-term investment theme focused on technological sovereignty and sustainable growth, making these spaces critical for investors to watch.
