Reliance, ONGC, SBI are looking attractive ahead of Budget - Gaurav Bhandari, CEO Monarch Networth Capital

Budget 2025-- As Finance Minister Nirmal Sitharaman tables the Union budget today on 1st February 2025 all eyes are on the impact of the Budget o the markets and shares that are looking attractive and pose opportunities to Buy

Gaurav Bhandari, Chief Executive Officer at Monarch Networth Capital Ltd does not see the Nifty falling below 22,000 and said that if the Budget is favorable, it could spark a strong market rebound. Speaking to Mint, Bhandari talked on the triggers for the markets and also the sectors and stocks he likes. Here are the edited Excerpts

1. How should investors approach the markets, considering the current volatility and Budget 2025?

Investors should focus on selectively buying large-cap stocks that have been beaten down but still show clear growth potential. It is important to target companies where there is strong visibility of future growth and where there is a solid margin of safety.

2. What’s the worst-case scenario for market downside?

I don’t see the benchmark Nifty 50 Index falling below 22,000. and this remains the worst-case scenario. However, if the Budget is favorable, Bhandari said that it could spark a strong market rebound.

Stocks to Buy ahead of the Budget

3. Which sectors and stocks should investors focus on ahead of the Budget?

PSU banks (Public sector Banks), particularly SBI (State Bank of India), along with Oil & Gas stocks like Reliance Industries and ONGC (Oil and Natural Gas Corporation), are looking attractive ahead of the Budget.

4. What key triggers could drive the markets?

A key driver would be if the government reduces tax rates for the middle and upper middle classes, which would put more money in people's hands and help boost demand. It's an interesting contrast that while corporates are taxed at a 25% rate, high-net-worth individuals are taxed above 40%. A more balanced approach could help stimulate the economy.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment.