Budget 2021 Stock Picks: Ashok Leyland, Tata Motors to Maruti Suzuki - experts recommend these shares to buy on scrappage policy announcement

Budget 2021 Stock Picks: Once Finance Minister Nirmala Sitharaman announced voluntary scrappage policy in the Union Budget today, stock market investors are busy finding out the shares to buy and maximise their returns. To make their problem easy, stock market experts have opined that it will have long-term impact on the auto sector stocks as it's voluntary and companies will benefit in long-term from the decision. They said that first its two wheeler segment will pik up, then passenger cars and then commercial vehicle business.

Speaking on the impact of scrappage policy announcement in Union Budget 2021 Avinash Gorakshkar, Head of Research at Profitmart Securities said, "The scrappage policy announced in the budget today is voluntary. So, it won't have any immediate impact on the auto stocks, but in the long-term, it will definitely have a positive impact on the auto stocks. First the two-wheeler segment will benefit from it, then the passenger car segment and then finally commercial vehicles. it will start in the next three to four months and finally reach its pinnacle in the next 7-8 months."

Asked about the stocks that one should look upon to get benefit of this policy announcement Gorakshkar said that Bajaj Auto, Hero Motocorp, Maruti Suzuki, Tata Motors and Ashok Leyland.

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Giving money making ideas to maximise one's gains in auto segment stocks Simi Bhaumik, SEBI registered technical equity analyst told Zee Business, "One can buy Tata Motors for the target of Rs 290 to Rs 310 maintaining the stop loss at Rs 240. One can also buy MAruti Suzuki shares for the target of Rs 8,000 maintaining stop loss at Rs 7,000 while for Ashok Leyland share, one can buy this share for the target of Rs 140 but they must maintain the stop loss at Rs 110."