Budget 2026 stock market picks: Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget on February 1, 2026. Post the Union Budget, investors are wondering which stocks should they bet on. Motilal Oswal Financial Services shares its top 10 stock picks that investors can consider buying. Here’s what the brokerage has to say:The Union Budget 2026 was largely in line with our modest expectations and underscored continuity in the government’s fiscal approach over the past five years, rather than delivering any high-impact near-term stimulus. The policy thrust remains firmly tilted toward public capex, with capital expenditure budgeted to rise 11.5% YoY to Rs 12.2t in FY27E, supporting sectors leveraged to the investment cycle.
A key highlight was the government’s intent to attract global investment into data centres, which could drive incremental opportunities across digital infrastructure and utilities. Further, strategic sectors such as semiconductors and electronics manufacturing services, defence, chemicals, and select industrial manufacturing stand out as potential beneficiaries, aided by targeted incentives, production-linked schemes, and the development of dedicated industrial parks—reinforcing a constructive medium-term investment outlook.
Apollo Hospitals: For the healthcare sector, the budget not only provides financial assistance but also highlights the government’s efforts to prepare Indian companies to gain business on global healthcare platforms. The measures to market ‘India’ for medical tourism, supported with enhancing the resource pool (doctors/nurses), would enable increased international patient flow. The government will support states in establishing five regional medical hubs in partnership with the private sector, which is expected to be supportive for large hospital operators with strong operational presence.Acme Solar:The Union Budget 2026-27 reinforces the government’s commitment to promoting clean and emerging technologies across the energy value chain. Viability gap funding (VGF) support for battery energy storage systems (BESS) is proposed to increase sharply to Rs 10b, a tenfold rise from Rs 1b in FY26RE, which is positive for IPPs such as ACME Solar, which have undertaken BESS projects.Bharat Electronics The capital outlay for Defense was hiked to Rs 2.2t for FY27 (up 18% YoY) vs. Rs 1.9t in FY26RE. The Sharp 18% year-on-year increase in defense capital expenditure directly benefits indigenized defense electronics and order inflows. Bharat Electronics is well-positioned to capitalize on sizable orders including QRSAM, Akash-NG, next-generation corvettes, and base programs.L&T:Capital expenditure remains the central pillar of the Budget’s growth strategy. Central government capex rises to about Rs 12.2t in FY27, registering an 11.5% increase over the revised estimates for FY26. Larsen & Toubro’s prospect pipeline stands at a healthy Rs 5.9t, up 7% YoY, diversified across infrastructure, hydrocarbons, carbon, and hi-tech segments. Strategic focus on urban development, renewables, gas, AI, and data centres supports strong opportunity visibility across domestic and international markets.Lemon Tree:We are optimistic about the domestic tourism industry, with demand consistently exceeding pre-Covid levels. Hotel companies expanding into tier-II and below cities will benefit from the government’s push for tourism.Lemon Tree Hotels continues to demonstrate resilient performance, driven by strong ARR growth and strategic property additions. Aurika Mumbai and other flagship properties are expected to drive double-digit RevPAR growth in 2HFY26.Samvardhana Motherson:The fact that the government would continue its infrastructure push is a key indirect positive for auto and auto ancillaries. The increase in PLI allocation, move toward establishment of rare earth corridor and provision of 4k e-buses for East Tourism highlight its continued focus on EV transition.We expect the auto segment to sustain its momentum on the back of a positive consumer sentiment, both in urban and rural and steady economic growth expected in FY27.Polycab:The Union Budget 2026-27 gives a substantial manufacturing push (electronics and infrastructure) that should support demand for cables & wires. Long-term tax holiday until 2047 for foreign companies that provide cloud services globally using data centre infrastructure located in India – will attract investment in Indian data centre capacity, which would drive growth for cables. Polycab remains a strong structural play on India’s electrification, infrastructure and real estate upcycle. Syrma:The Union Budget 2026-27 announcements and initiatives are aimed at boosting domestic manufacturing and competitiveness in the Indian EMS sector. The introduction of an ISM 2.0, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Modified Special Incentive Package Scheme (MSIPS), EMC/EMC2.0 and doubling of outlay under the ECMS scheme promote cost-efficient manufacturing. These steps should position India as a growing hub for electronics production, offering significant growth opportunities. EMS companies will leverage these initiatives by expanding domestic production.Tata Steel:Capex for FY27BE is pegged at Rs 12.2t, compared to Rs 11.0t in FY26RE. The infrastructure sector accounts for ~60% of the total domestic steel demand, with construction at ~20% and automobiles at ~8%. Domestic steel demand is expected to improve with higher capex and recent GST rate cuts on auto, consumer durables and other sectors. Tata Steel is well placed to benefit from improving steel realizations, operating efficiencies, and robust domestic demand.UltraTech: Cement demand has improved after remaining weak for 1.5 years. Industry volume grew ~7-8% YoY in 3QFY26, with strong demand momentum after the monsoon and festive periods. The government’s increased allocation to overall capex (up ~12% to Rs 12.2t vs. 2025-26RE) is expected to indirectly benefit cement demand. We now estimate industry volume growth to be ~8% YoY in FY26E (vs. earlier estimate of 6-7%). We believe Ultratech is well positioned to leverage the strong demand uptrend given its large scale of operation and strong brand equity.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
