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Friday, January 27, 2023

LIC, SBI Life to Can Fin Homes: Bonanza Picks These 8 Budget 2023 Stocks to Buy

Budget 2023 shares to buy: As the Union budget for the 2023-24 fiscal year fast approaches, stock market pundits are busy speculating on the sectors and stocks that may generate a big move higher after the completion of the budget speech of Finance Minister Nirmala Sitharaman on February 1, 2023. According to Bonanza Portfolio, the Government of India is expected to continue to support SMEs and MSMEs.

Bonanza Portfolio believes that the government’s focus on the ‘affordable housing segment’ is also expected to continue and therefore bank and NBFC stocks are expected to remain in the focus of most market watchers and investors. Stock market. However, the brokerage said there is a good chance that FM Sitharaman will announce a reduction in GST on health and life insurance policies. If the announcement does come, then life and health insurance stocks are expected to attract the attention of bulls after the budget.

Commenting on what we can expect from Budget 2023, Jitendra Upadhyay, Senior Research Analyst at Bonanza Portfolio, said: “We believe the government will continue to provide additional support to finance SMEs and MSMEs. In addition, the government is expected to increase benefits tax on home loans for interest payments due to sustained focus on affordable “Housing for All” which would greatly benefit home finance companies This would benefit most home finance companies such as Can Fin Homes, Home First Finance and Aavas Finance.

Jitendra Upadhyay said that FM Sitharaman may announce the continuation of the Emergency Credit Line Guarantee Scheme or ECLGS program which was introduced during the Covid-19 pandemic to provide liquidity support to SMEs and MSMEs which will boost bank stocks. and from NBFC.

However, Jitendra Upadhyay of Bonanza Portfolio said that health and life insurance stocks may turn into a dark horse as speculations are quite high on GST reduction on health and life insurance policies.

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“The government may reduce the GST applicable to health and life insurance from 18% to 5% in an effort to minimize the cost of the burden to the customer. This will encourage more people to buy insurance, boosting penetration on the market,” Bonanza said. Portfolio Expert. Jitendra Upadhyay of Bonanza Portfolio said that in the event of a GST reduction in life and health insurance schemes, stocks like Life Insurance Corporation (LIC), Star Health Insurance, SBI Life, HDFC Life and ICICI Prudential may attract interest from buy from market bulls. Therefore, these insurance shares are “worth buying” before FM Nirmala Sitharaman presents the Union Budget for 2023 on February 1, that is, on Wednesday of next week.

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of the Mint. We advise investors to consult with certified experts before making any investment decision.

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