Budget Dhamaal: Top 10 Stocks To Buy Now To Prosper From $5 Trillion Economy

I will make India into a $5 Trillion economy: NAMO

NAMO has made the solemn promise that he will convert India into a powerhouse economy worth a mind-boggling $5 trillion.

Our dream:

More investment in India.

More opportunities for Indians.

Making India a five trillion dollar economy. pic.twitter.com/GlpOU9KlfP

— Narendra Modi (@narendramodi) June 25, 2019

Let it be our collective endeavour to make India a five trillion dollar economy: PM @narendramodi

— PMO India (@PMOIndia) June 25, 2019

In fact, few are aware that by 2030, India will be the second largest economy in terms of GDP. It will even overtake the USA.

This speaks volumes about the size and strength of the Country.

Also a bulk of the populace comprises of youngsters who are middle class.

This implies that there is a long runway of growth ahead for the economy.

5 things to know about India by 2030:

1. second largest economy (GDP), ahead of US
2. more than 1 billion internet users
3. 77% or population under age 44
4. 80% of population is middle class
5. $5.7 trillion consumer spending https://t.co/KLtLWXPHm0 pic.twitter.com/iNo76GkC78

— Vala Afshar (@ValaAfshar) June 25, 2019

Nirmala Sitharaman takes tips from Manmohan Singh on how to present blockbuster Budget

Nobody can dispute that the dynamic duo of PV Narasimha Rao and Manmohan Singh transformed India into the powerhouse that it is today, thanks to their policies of liberalization and opening the doors of the economy to deep-pocketed foreign investors.

In addition, Manmohan Singh is a renowned economist and former RBI Governer.

He knows all the tricks of how to wake the economy from slumber and catapult it.

In fact, the reforms ushered in by the duo of Rao and Singh led to mega multibagger gains for the investors who had invested in stocks at that time.

So, it is in the fitness of things that Hon’ble Nirmala Sitharaman, the Finance Minister, paid a visit to Manmohan Singh on the eve of the Budget.

No doubt, MMS would have given her valuable counsel on what she should, and should not, do in her debut Budget.

Days ahead of #Budget2019, Finance Minister Nirmala Sitharaman meets former Prime Minister and senior Congress leader Dr Manmohan Singh at his residence in Delhi

(? credit: ANI) pic.twitter.com/RTsOHNSLPF

— NDTV (@ndtv) June 27, 2019

(Finance Minister preparing to dole out Halwa to the beleaguered investors in Dalal Street)

LTCG tax to be junked, tax rates to be slashed?

The common demand in Dalal Street in that the dreaded LTCG tax should be junked.

It may be recalled that when the tax was first introduced, eminent visionaries like Shankar Sharma and Samir Arora had warned that it will “kill the equity cult” in the Country (see Tax On Capital Gains Will Kill Equity Cult Say Shankar Sharma & Samir Arora).

No doubt, this ominous prophecy has come true as one can see from the deserted lanes in Dalal Street.

Ajay Bagga eloquently echoed the sentiments of the investors.

“LTCG लगने से बाजार में निवेशकों को बहुत दिक्कतें हुई हैं अब सरकार को इसे हटा लेना चाहिए,” he said in chaste Hindi.

#MarketMaangeMore | #LTCG लगने से बाजार में निवेशकों को बहुत दिक्कतें हुई हैं अब सरकार को इसे हटा लेना चाहिए: अजय बग्गा, मार्केट एक्सपर्ट#TaxGhataoFMZee #LTCGHatao #BudgetWithZee @Ajay_Bagga @FinMinIndia @nsitharaman @AnilSinghviZEE pic.twitter.com/Zi0qMmKs9r

— Zee Business (@ZeeBusiness) June 26, 2019

.@DevenChoksey: NBFC Crisis Can Only Be Solved Once All Regulators Are On Same Page

Data Proves Imposition Of LTCG Did Not Yield The Desired Results

Compliance For LTCG Another Determent For Investors To Enter Equity Market@KRChokseyShares @NivritaG pic.twitter.com/Dn3DUJH49Y

— BTVI Live (@BTVI) June 20, 2019

The kind of Carnage is going on since the LTCG was levied upon ,It's been more than two n half years,Huge majority of investors have lost their money,mid cap small cap faced the brutal attack and now nifty stocks too r gettin the same treatment,index protected but not the wealth https://t.co/XagEMltBou

— Ashish Bhardwaj (@aashish2212) June 19, 2019

@nsitharaman Mam please see the attachment and reduce corporate tax in the upcoming budget. Also take some steps for reducing LTCG. Share market is in deep recession and so is the economy. Every business house is worried about it's existence. pic.twitter.com/eMqCS6FEMk

— Wealthcreator (@adityaagg1994) June 27, 2019

Vijay Kedia pointed out that Indian investors are presently paying a nose-bleed tax rate of 60-70%. He opined that this is an anomaly and suggested that that the tax rates should be slashed.

Indian investors in 60% to 70% tax bracket; Budget should correct this anomaly. Over 95% investors are going through a tough time. Primary index is deceptive, does not portray true picture. @nsitharamanhttps://t.co/gOlzEprRCa

— Vijay Kedia (@VijayKedia1) June 27, 2019

GST rates on many sectors is too high n thereby slowing consumption. Eg If tourism is a thrust area, GST on hotels need sharp reduction. Most 5 star hotels r becoming unviable on account of low occupancy

— Kiran Mazumdar Shaw (@kiranshaw) June 26, 2019

Vijay Kedia, Basant Maheshwari, Porinju Veliyath Etc recommend ten stocks

I have already drawn attention to the fact that 10 accomplished stock pickers have recommended 10 fail-safe and high-quality stocks to us.

Each one of the recommended stocks is a powerhouse in its own right and are expected to keep our portfolios in fine fettle.

Top 10 Stocks To Buy Now – Recommendations By Vijay Kedia, Basant Maheshwari, Porinju Veliyath Etc https://t.co/YRuHM8qGh3 pic.twitter.com/5vHy3IJEQO

— RJ Stocks (@RakJhun) June 23, 2019

10 stocks to buy to prosper from the Budget 2019

In addition, Rahul Oberoi of ET has persuaded leading experts to recommend the best stocks to us, which will benefit from the reforms in the Budget.

The recommendations are as follows:

(i) ICICI Bank:

The lender is engaged in providing a range of banking and financial services, including commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services.

ICICI Bank’s net interest income (NII) increased by 27 per cent YoY to Rs. 7,620 crore in Q4FY19 from Rs 6,022 crore. Net NPA ratio decreased to 2.06 per cent of advances as at end Q4 FY19, from 2.58 per cent YoY.

(ii) Marico:

Marico is a consumer products company operating in the beauty and wellness space. The company’s principal products include edible oils and value added hair oils.

The management has given a guidance for aggressive investment for innovations and a visibly strong pipeline for the next 2-3 years.

Over the last three years, the company has systematically invested in the core international markets to strengthen both the brands and the organisational capability to handle growth.

The company is confident that each of these markets is well-poised to capitalise on the market opportunities.

(iii) LIC Housing Finance:

The mortgage lender provides loans for purchase, construction, repairs and renovation of houses/flats to individuals, corporate bodies, builders and co-operative housing societies.

The company has witnessed growth coming in from different sectors across the country and the management seems confident of further improvement on all operational areas in FY20.

(iv) Bharat Electronics:

Bharat Electronics is engaged in design, manufacture and supply of electronics products/systems for the defence requirements, as well as for nondefense markets.

BEL is well positioned to benefit from the rising defence expenditure, supported by strong manufacturing base and execution track record, relationship with defence and government agencies, strategic collaboration with foreign technology partners for new product development, in-house R&D capabilities and increased focus on exports to friendly countries.

(v) Federal Bank:

Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other operations.

The treasury operations include trading and investments in government and corporate debt instruments, equity and mutual funds, derivative trading and foreign exchange operations on account and for customers.

The management of the bank has focused in wholesale banking which would continue to give strong, balanced credit growth and improvement in asset quality.

(vi) Kalpataru Power Transmission:

This is an engineering, procurement and construction (EPC) contracting company. It manufactures metal frameworks or skeletons for construction and parts, such as towers, masts, trusses and bridges.

Strong traction is expected to continue from SEB (state electricity boards)’s, private players along with Power Grid (PGCIL) in domestic T&D segment. It has participated in tenders worth Rs. 8,000- 9,000 crore till date in T&D space both global and local.

Currently around 15 per cent of total revenues come from the railways and pipeline (R&P) segment. The company’s order book stands at Rs 14,068 crore as at Q4 FY19.

The company has guided for sales growth of 15-20 per cent, and EBITDA margin of 10.5-11 per cent in FY20.

(vii) to (x) FMCG and auto stocks:

Hindustan Unilever, Dabur, Colgate and Hero MotoCorp will benefit from higher allocations to MNREGA, expansion of PM KISAN Scheme and any other targeted income transfer scheme for farmers or the rural population.