In line with the government’s election manifesto, smart cities, industrial corridors, higher education, low cost housing and various roads, ports, airports and other infra projects are expectedly going to be the thrust areas. The budget also indicated areas on which policy measures can be expected in the coming year such as coal availability, gas pipelines, urea, ship-building, etc. All in all, there is a lot in the budget that creates optimism of continued policy impetus yet to come across a range of sectors.
With the immense low-hanging fruits and huge decisive mandate, in our view, policy impetus is likely to continue in the weeks and months to come. Overall, we maintain our strongly positive view on the market with a continued preference for domestic cyclicals such as banking, infrastructure, capital goods, auto, cement as well as quality midcap stocks across a range of sectors.