Budget 2026: Analysts pick 11 stocks to watch today
What's the story
As Finance Minister Nirmala Sitharaman prepares to unveil the Union Budget for FY2026-27, analysts have identified 11 stocks that could be potential winners. These picks come as experts anticipate a rise in capital expenditure, particularly in infrastructure and defense sectors. The budget is also expected to maintain or slightly reduce the fiscal deficit target for FY27.
Stock picks
NMDC, Bharat Electronics, L&T among top picks
Analysts have recommended a list of 11 stocks to keep an eye on during the budget announcement. The list includes NMDC, Bharat Electronics, Larsen & Toubro, Jupiter Wagons, Hindustan Aeronautics, TVS Motor Company, Waaree Energies, SBI Life Insurance, KNR Constructions, Garden Reach Shipbuilders and Engineers, and two others. These companies are expected to benefit from the government's focus on infrastructure development and defense spending in the upcoming budget.
Stock analysis
NMDC may gain from budget's focus on manufacturing
NMDC is expected to gain from the budget's focus on manufacturing and supply-chain security through the critical minerals mission. The company is also likely to benefit from continued infrastructure capex, which supports long-term demand visibility. Analysts expect NMDC's volumes to gradually increase to 51 million tons (MT) in FY27 and 54MT in FY28, supported by EC enhancements and stable realizations.
Defense focus
L&T to gain from capex growth
Bharat Electronics is well-positioned to benefit from the budget's focus on defense and allied sectors, with expected defense capex growth of around 15%. The company is likely to benefit from large orders across Army, Navy, and Airforce. Meanwhile, Larsen & Toubro is expected to be a major beneficiary as capital expenditure is likely to grow by around 10% year-on-year.
Insurance sector
SBI Life Insurance
SBI Life Insurance is expected to remain in focus as insurance sector reforms align with the government's financial inclusion agenda. The company's management has retained APE growth guidance of 13-14%, expecting momentum to continue into FY27. Analysts expect SBI Life's APE and VNB to grow at a CAGR of 15% and 16%, respectively, over FY25-28.
Growth prospects
KNR Constructions and Jupiter Wagons
KNR Constructions is expected to benefit from higher MoRTH allocations and the budget's focus on irrigation and river-linking projects. The company could see inflows of ₹8,000-10,000 crore during the January-March 2026 tender cycle. Jupiter Wagons is also expected to benefit from a 5-10% YoY increase in railway allocations, supporting India's "Viksit Bharat" vision.
Defense modernization
Garden Reach Shipbuilders and Engineers
Garden Reach Shipbuilders and Engineers is expected to benefit from the government's focus on self-reliance in defense through modernization programs. The company is expected to maintain a strong net worth amid moderate capital expenditure, a robust order book, and healthy cash accruals. Analysts suggest investors can buy the stock with a target price of ₹3,110.
Industry giants
Hindustan Aeronautics and TVS Motor Company
Hindustan Aeronautics is expected to benefit from an 8-10% increase in the defense budget and a capital allocation of ₹2.1-2.3 lakh crore. The company is a leader in aerospace and is focusing on developing indigenous aircraft and helicopters, providing revenue visibility over the next 5-10 years. TVS Motor Company also reported strong Q3 FY26 performance with operating revenue rising by 37% YoY to ₹12,476 crore.