Budget changed equation! Motilal Oswal strategized strategy on Capital Goods Sector; Buy advice on these shares including L&T, BEL, Zen Tech

Budget 2025: Finance Minister Nirmala Sitharaman presented the general budget amidst the economic challenges and soft sentiments. This was the first full Union Budget of the Modi government after the Lok Sabha elections 2024. In the budget, there was a focus on the Capital Expenditure (CAPEX) with some initiatives in the budget, tax cuts for the middle class and some goals of fiscal deficit.

However, this was the first time in many years that the budget was opted to encourage consumers and savings rather than more focus on capital experts. However, as usual, this time the focus of the budget was focused on focal deficit consolidation.

Brokerak firm Motilal Oswal says that the government has made two major changes in the budget 2025 clan. One, for the first time in the decade, has focused more on consumption and savings rather than capital exploited. Second, many years later, the response estimates look aggressive.

Focus on capital goods sector after budget

Motilal Oswal said that now it would be good to be selective on the capital goods sector. Also, it would be better to focus on companies that are less affected by the slow growth in the government capital experience (CAPEX) or who have other ways to read.

With this, brokerage has revised its ratings on many stocks. Brokerage changed his rating on Hitachi Energy and Thermax ‘Sell‘ Is done. Also on Simmons’Neutral‘Rating’.

Brokerage said that we will remain positive on sectors like Power T&D, Defense, Data Center and Electronics. Also, L&T, ABB and Cummins in Large-Cap will prioritize Electronics in ABB and Cummins and Defense sector.

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Which sector benefits the most from tax cuts?

Motilal Oswal said in his report that FMCG, Staples, Retail, Consumers Dislike, Entry Level Cars and two -wheeler sectors can benefit the most.

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