Union Budget Review (2026-2027)

Budget 2026-27 was more growth-focused than populist with Supportive policies in heavy manufacturing and emerging sectors such as electronics, semiconductors, biopharma, capital goods, containers, and textiles are clearly the government’s priority bets. message is loud and clear: India looks to position itself as a global manufacturing player, even as amid trade tensions rise worldwide. For businesses in these spaces, the Budget offers better earnings visibility rather than a short-term demand boom.

Budget outlined a 10% increase in FY27BE capex, with the capex to GDP ratio set at 3.1%, almost similar to last year’s levels.

The government remained committed to fiscal consolidation path and announced moderate capex target (FY27BE capex up by over 9% from FY26BE). For FY27, the government is targeting fiscal deficit at 4.3%.

In conclusion, Budget 2026 marks a clear shift from consumption boost to ensuring fiscal and policy stability, amid uncertain global waters. This year’s Budget may have its hits and misses, but to borrow a phrase from the FM’s speech – “The Reform Express is well on its way and will maintain its momentum.”

Investment Picks:

Large-caps: Sun Pharma, ICICI Bank, M&M, SBIN, L&T, HUL, Dabur, Tata Consumer, Sun Pharma, Hero MotoCorp, NTPC, PowerGrid, UltraTech, TCS, Infosys, DLF, JSW Steel, and Jindal Steel.

Mid-caps: Lupin, Torrent Pharma, Biocon, Marico, Persistent Systems, HUDCO, Varun Beverages, Zydus Wellness, Polycab India, REC, PFC.

Small-caps: Kirloskar Oil Engines, Radico, ABDL, Arvind Smartspaces, KEC, V2 Retail, and Emami.

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