On Saturday, February 1, 2025, Indian Finance Minister Nirmala Sitharaman presented the Union Budget 2025. The budget featured announcements on income tax reforms, a boost to consumption, and support for agricultural production.
Following the budget, sectors such as Renewable energy, agriculture, capital goods, and others are expected to benefit. Below are the sectors and stocks that experienced an uptick during the budget announcement.
A major step announced in the budget was the establishment of a large-scale urea production plant in Assam, with an annual capacity of 12.7 lakh metric tonnes.
“The government will undertake Dhan Dhanya Yojana in partnership with the state, to enhance productivity, crop diversification, augment post-harvest storage, improve irrigation, facilitate short and long-term credit to help 1.7 crore farmers,” Finance Minister Nirmala Sitharaman said.
Following the announcement, shares of agri-related companies surged between 2%-9%. The stock of National Fertilizer went as high as ₹113.35 per share, and Chambal Fertilizers & Chemicals touched an intraday high of ₹513.85. While, Gujarat State Fertilizers went up to ₹211.99 per share.
In her Budget 2025 speech, Finance Minister Nirmala Sitharaman introduced a targeted product scheme for the footwear and leather sectors. The scheme is expected to generate employment for 22 lakh people, achieve a turnover of ₹4 lakh crore, and drive exports exceeding ₹1.1 lakh crore, as stated by the FM.
Stocks such as AKI India, Bata India, Bhartiya International, Campus Activewear, and Liberty Shoes experienced gains of up to 6%.
In her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman emphasised a major initiative to enhance broadband connectivity in schools nationwide. The government plans to utilise the BharatNet project to extend high-speed internet to educational institutions, providing digital access to students in even the most remote areas
Following the announcement, stocks such as HFCL, Bharti Airtel,Vodafone Idea, and Tejas Networks saw notable movement.
Auto stocks saw a surge after the Union Budget 2025 introduced measures to accelerate electric vehicle (EV) adoption and strengthen infrastructure. Finance Minister Nirmala Sitharaman unveiled several initiatives aimed at developing an ecosystem for solar PV cells and EV batteries, boosting investor sentiment and driving gains in major auto stocks.
Maruti Suzuki’s share price jumped over 6%, benefiting from the Budget’s EV-centric incentives, while Mahindra & Mahindra (M&M), Hyundai Motor India, and Tata Motors saw increases ranging from 1-3%.
Renewable energy stocks saw a significant boost as the industry welcomed the government’s support for local manufacturing through the announcement of the National Manufacturing Mission in the Union Budget 2025-26.
Stocks in the sector climbed by approximately 5%, with companies like Waaree Energies, Inox Wind, NTPC Green, JSW Energy, NHPC, and SJVN rising by 2-5%. Finance Minister Nirmala Sitharaman introduced the National Manufacturing Mission to promote clean technology manufacturing, focusing on the domestic production of EV batteries and solar panels.
Shares of BHEL, Hindustan Construction Company, L&T, Walchandnagar Industries, Thermax, KSB, and Kirloskar Brothers surged by up to 12% following the announcement of a ₹20,000 crore allocation for the Nuclear Energy Mission in Union Budget 2025.
The mission, aimed at supporting Viksit Bharat, envisions the development of 100 gigawatts (GW) of nuclear power by 2047. To foster private sector involvement, amendments will be made to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act.
Ambika Cotton Mills saw the largest gain, with its shares rising 9% to ₹1,630. Other textile stocks also experienced gains, with KPR Mills increasing by nearly 4%, while Vardhman Textiles and Arvind saw rises of 2% and 4%, respectively.
Shares of textile companies surged up to 9% during the special Budget session on Saturday after Finance Minister Nirmala Sitharaman announced a 5-year mission to enhance cotton productivity. The focus on promoting extra-long staple (ELS) cotton varieties is expected to provide substantial support for the sector.
The Economic Survey, presented yesterday, outlined the addition of 17 new pairs of Vande Bharat trains to the network, along with the production of 228 coaches between April and October 2024.
Among the key beneficiaries, Jupiter Wagons saw a significant jump of nearly 7.3%, closing at ₹430.70, pushing its market capitalisation to over ₹18,000 crore. Titagarh Rail Systems also saw a surge of more than 6.5%, reaching ₹1,087, with its market valuation approaching ₹15,000 crore. The survey emphasised the government’s ongoing commitment to enhancing rail infrastructure.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Feb 1, 2025, 4:03 PM IST
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