Budget 2019: This is what Dalal Street expects from Modi 2.0; Top stock picks to key expectations, know them all

Modi 2.0 government is all set to announce the Union Budget 2019 tomorrow, July 5 and the stock market is expecting a few changes and a lot of relief. Investors are eager to know the policies, changes, fresh norms, new tax regime that the government is planning to bring into the system. From salaried class to corporate giants, the budget will clear the status on country's financial health. The prevailing slowdown in world economy is also curbing India's GDP growth. Now, it becomes very important for the government to push sectors like Real Estate, Infrastructure, capital goods and consumer goods to raise demand and investments in the economy. The rising crises of NBFCs in PSU banks and liquidity crunch need to have a resolution roadmap in this budget. Supportive policies and changes in tax regime are expected in this budget to propel the overall investment cycle. 

Jayant Manglik, President - Retail Distribution, Religare Broking told Zee Business Online, ''Going forward, we maintain our cautious stance on the Indian markets. The near-term movement is likely to be driven by the upcoming Union Budget (scheduled on July 05). Globally, while the temporary trade truce between US and China is a positive development, the recently escalated tensions between US and Iran could continue to induce high volatility across indices. Meanwhile, market participants would also monitor the monsoon progress, movement of crude oil prices and currency.

As far as the stock market is concerned, the experts are advising to bet on the sectors that are expected to revive in coming fiscal. The sectors like real estate, e-commerce, infrastructure, digital technology will play a key role in generating employment in the country. With new goals, funding, expenditure and projected financial health, the Union Budget 2019 will have an impact on the companies dealing in these sectors. Any positive changes announced in the favour of these sectors will bring in investment in stock market for them too. 

''Budget season breeds more speculation from experts that is visible on the stock markets. The economy is multi-faceted with so many peddles to accelerate in order to achieve meaningful economic growth. Few of the important peddles are employment generation, boosting manufacturing and agriculture and fiscal measures to incentivize growth. Govt has to think out of box and bring in global best practices into agriculture with the aid of private corporation with due protection to farmers’ rights on land holdings and at the same time boost agricultural output,'' said Umesh Mehta, Head of Research, SAMCO Securities.

Meanwhile, Goods and Services tax/GST collections of the government have been on the increasing rate but still fails to be in the required levels of between Rs 1,00,000 and Rs 1,10,000 crore a month. While growth in direct tax revenue of the government has been short of expected budgeted levels in 2018-19, as the collection was short by Rs 82,000 crore from the target of Rs 12 lakh crore by the centre. 

Prabhudas Lilladher told Zee Business Online, ''As Modi 2.0 sets out to present its first budget, the task seems to be cut out due to deep agrarian distress, slowdown in automobiles and consumer demand, NBFC crisis and rising pressures in real estate and housing. The government needs to provide tax relief to middle class and required to push for revival of capex cycle in the economy. We believe that shortfall in direct tax and GST collections post an incremental challenge to balance fiscal math.''

For the investors of stock market, the broker also mentioned its top stock picks, ''Our key budget picks are L&T, Ashok Leyland, M&M, HDFC Life, Titan Company, Crompton Consumer,'' it said.