Budget 2016: Sectoral stocks to watch out

Stocks in the banking, infrastructure, cement, pharma, housing finance, agriculture-related sectors will be in focus

With the Finance Minister all set to table the Union Budget 2016 today, markets will be keenly awaiting the government's stance on fiscal consolidation, revival in investments while investors would watch out for annoucement on capital gains and reduction in corporate taxes. Here are some of the sectoral stocks to watch out for as the Finance Minister rolls out his Budget proposals

Focus on Bank recapitalisation will impact: SBI, Bank of Baroda, Bank of India, Canara Bank and Punjab National Bank.

Infra focus; Smart Cities: L&T, IRB Infrastructure, Sadbhav Engineering, Ashoka Buildcon, HCC, ACC, Ambuja Cements and UltraTech Cement.

Higher allocation for Research & development: Lupin, Ranbaxy, Sun Pharma, Dr Reddy's Labs, Glenmark Pharma, Biocon and Syngene 

Higher allocation to agriculture will be positive for: Jain Irrigation, EPC Indutrie, Finolex Pipes and KSB Pumps.

Hike in excise duty on cigarettes to impact: ITC, Godfrey Phillips, Golden Tobacco in focus.

Higher deduction on home loans will be positive for: HDFC, ICICI Bank, LIC Housing Finance, Indiabulls Housing Finance; Real estate stocks such as DLF, Godrej Properties, Indiabulls Housing, Oberoi Realty, HDIL and Sobha.