Ahead of Union Budget 2026-27, investors are closely watching the stock market for potential opportunities. Key sectors likely to benefit include automobile, electric vehicles, railway, and pharmaceutical companies.
Investors Eye Key Sectors Ahead of Union Budget 2026
New Delhi: Union Finance Minister Nirmala Sitharaman will present the Union Budget 2026-27 in the Lok Sabha in a few hours. This budget will not only determine the country's future economic direction but will also be the third full budget of the Modi government's third term. Even before the budget is presented, investors and businesses are keeping an eye on the stock market. Despite being a Sunday, the stock market will remain open, and some stocks may see movement due to the budget's impact.
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If the budget announces more funds for salary increases under the Pay Commission, more money will be put into the pockets of ordinary people. This will have a direct impact on vehicle sales. Consequently, shares of auto companies such as Maruti Suzuki India, Hyundai Motor India, Tata Motors (Passenger Vehicles), Bajaj Auto, Hero MotoCorp, and TVS Motors may see strength.
Additionally, if the government increases investment in electric vehicle (EV) infrastructure and energy storage systems, shares of EV companies like Bajaj Auto, TVS Motor, Ola Electric, Tata Motors, Mahindra & Mahindra, and JBM Auto could also rise.
Railway sector stocks could see movement on Budget Day. Investors expect the government to allocate more funds for new Vande Bharat trains and major rail projects. Consequently, shares of companies like Titagarh Rail, Texmaco Rail, BEML, Rail Vikas Nigam (RVNL), IRCON, and RITEES could rise.
If the government provides tax breaks in the budget to boost research and development (R&D) spending, Dr. Reddy's Laboratories, Sun Pharma, Biocon, Lupin, and Glenmark Pharma could benefit.
Additionally, if the scope of the Production Based Incentive Scheme is expanded, it could prove beneficial for companies like Aurobindo Pharma, Cohen Life, Dr. Reddy's, Sun Pharma, and Cipla.
Each year, investors in the stock market monitor sector-wise opportunities on Budget Day. The auto, railway, and pharmaceutical sectors may offer positive signals for investors in this budget. Only after the budget is presented will it become clear which stocks will deliver the most benefits.
