In the Union Budget 2016 the Finance Minister proposed that in every block under drought-hit region to be taken under Deen Dayal Upadhya Gram Antyodya scheme. Sum of Deen Dayal Upadhya Gram Antyodya scheme allotted would be Rs 38,700 crore for MGNREGA in fiscal year 16-17. This will be the highest ever allocation for MGNREGA and will benefit consumption companies focused toward the rural sector including two-wheeler, consumer durables. From this move the FMCG & Power companies with good fundamentals could give a very good return to the investors.
Companies to watch for:
FMCG: ITC, Britannia Industries, Tata Global Beverages, GlaxoSmithKline Consumer Healthcare, Granules India.
BANK: HDFC Bank, Bajaj Finance, IndusInd Bank,
POWER:Kalpataru Power Transmission, Thermax, PTC India.
MNCs like Abbott India, GlaxoSmithKline Pharmaceuticals, Merck, Sanofi, Pfizer India, Astra Zeneca.