The biggest ask from the 2020 Union Budget is in the infrastructure space, where there is an expectation of spending increase by over Rs 5 lakh crore. If that were to happen, the big beneficiaries will be largecap names like L&T. However, midcaps like like IRB Infra, Dilip Buildcon and Ashoka Buildcon will benefit as well.

The next in line is the housing and real estate space. The government has an ambitious plan to provide housing for all by 2022. If there is a higher deduction for interest paid on home loans then the beneficiaries could be names like HDFC, L&T Finance, LIC Housing etc. Similarly, if there is a liquidity window provided for ease of financing then apart from these names the likes of Canfin Homes could look for an upside.

There is an expectation of a boost in the insurance sector. The government may allow tax exemption on the full premium paid by taxpayers. The current exemption is only after Rs 25,000 for individuals and parents below 60 years of age. If that comes through, it could be a positive for ICICI Lombard, HDFC Life and other listed life insurance companies.

Rural income is expected to get a boost as well. Currently, 12 percent of the total allocation is towards rural income, including agriculture, animal husbandry and fertilisers at about 3.4 lakh crore. A hike there will help the likes of HUL, Dabur, Colgate etc.

Higher tax on cigarettes will put ITC, Godfrey Phillips etc. under pressure.

If there is a higher deduction on interest in housing loans, DLF, Prestige Estate etc. could be on the upside and any measure to address the liquidity crisis in the real estate space could be a positive for the likes of Brigade, Suntech etc.

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