LIC, SBI Life to Can Fin Homes: Bonanza picks these 8 budget 2023 stocks to buy

Bonanza Portfolio believes that government’s focus on ‘affordable housing segment’ is also expected to continue and hence banking and NBFC stocks are expected to remain in focus of majority of stock market observers and investors. However, the brokerage maintained that chances are quite high that FM Sitharaman may announce a decrease in GST on health and life insurance policies. If the announcement comes, then in that case health and life insurance stocks are expected to attract bulls’ attention post-Budget.

On what we can expect from Budget 2023, Jitendra Upadhyay, Senior Research Analysts at Bonanza Portfolio said, “We believe that the government will continue extending additional support for finance to SMEs and MSMEs Moreover, the government is expected to increase tax advantages on housing loans for interest payments due to the sustained focus on affordable “Housing for All,” which would greatly benefit housing finance firms. This would be benefited most of affordable housing Finance Companies such as Can Fin Homes, Home First Finance and Aavas Finance.”

Jitendra Upadhyay said that FM Sitharaman may announce to continue the Emergency Credit Line Guarantee Scheme or ECLGS programme that was introduced during Covid-19 pandemic to lend liquidity support to the SMEs and MSMEs, which will fuel banking and NBFC stocks.

However, Jitendra Upadhyay of Bonanza Portfolio said that health and life insurance stocks may turn out as dark horse as speculations are quite high about reduction in GST on health and life insurance policies.

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“The government may reduce GST applicable on Health and Life insurance from 18 per cent to 5 per cent in an effort to minimize cost of burden on the customer. This will cheer more people to buy insurance, boosting penetration in the market,” said bonanza Portfolio expert. Jitendra Upadhyay of Bonanza Portfolio said that in case of GST reduction on health and life insurance schemes, stocks like Life Insurance Corporation (LIC), Star Health Insurance, SBI Life, HDFC Life and ICICI Prudential may attract buying interest by market bulls. So, it’s ‘worth buying’ these insurance stocks before FM Nirmala Sitharaman tables the Union Budget 2023 on 1st February i.e. on Wednesday next week.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.