The air is thick with anticipation. The Union Budget 2026 is just around the corner, and the markets are holding their breath. Will it be a budget that fuels a new bull run, or will it trigger a sharp correction? For investors, this week—January 27 to February 1, 2026—is not just another trading week; it’s a potential inflection point.
Adding fuel to the fire, Sudeep Shah, the Head of Research at SBI Securities, has dropped his latest market outlook, naming two specific stocks as top buys for the volatile Budget week. But what does he see in the broader Nifty that the rest of us might be missing?
Table of Contents
- Nifty at a Crossroads: Budget 2026 Outlook
- Top Stocks to Buy This Week: Shah’s Picks
- Deep Dive: Hindustan Unilever, a Defensive Play
- Deep Dive: Ashok Leyland, Betting on the Economic Revival
- Conclusion: Your Budget Week Strategy
- Sources
Nifty at a Crossroads: Budget 2026 Outlook
The Nifty has been on a rollercoaster ride recently. After scaling fresh all-time highs earlier in January, it faced a sharp weekly fall, closing at 25,048.65 on January 23, down 0.95% . This sets the stage for a highly volatile and decisive week ahead of the Budget announcement.
Sudeep Shah’s team at SBI Securities sees a pivotal moment. While the immediate term is fraught with uncertainty due to the Budget, their long-term view remains bullish. They forecast that Nifty 50 earnings are poised to re-enter double-digit growth territory by fiscal year 2026-27 (FY27) . This optimism is rooted in expectations of improved consumption, renewed government capex, and a stable macroeconomic environment.
For the Budget week itself, the key levels to watch for the Nifty will be its ability to hold above the 25,000 mark. A decisive break below could signal short-term weakness, while a strong rally above 25,500 could indicate that the market is pricing in a positive Budget surprise. Traders should also keep a close eye on the Bank Nifty, as financial stocks are often a barometer of the market’s confidence in the government’s fiscal plans.
Top Stocks to Buy This Week: Shah’s Picks
In this climate of uncertainty, Shah isn’t shying away from making bold calls. He has recommended two stocks as top buys for the Budget 2026 week: Hindustan Unilever and Ashok Leyland. This is a fascinating combination—a classic defensive FMCG giant paired with a cyclical auto stock that’s a direct proxy for India’s economic health.
This strategy suggests a balanced approach: hedge against potential downside with a stable, dividend-paying consumer stock while simultaneously positioning for a potential upside breakout if the Budget delivers a pro-growth, capex-heavy message. Let’s take a closer look at why these two names stand out.
Deep Dive: Hindustan Unilever, a Defensive Play
Hindustan Unilever (HUL) is the bedrock of many Indian portfolios for a good reason. In times of market stress, its resilient business model, which sells essential goods from soaps to food, provides a safe haven. As of late January 2026, HUL was trading around the ₹2,410 mark .
Technically, the stock has shown immediate support at ₹2,362 and resistance at ₹2,448 . Its massive market capitalization of over ₹6.23 trillion makes it a true blue-chip, offering stability and consistent returns . For the Budget week, HUL serves as a perfect hedge. If the market reacts negatively to the Budget, HUL’s defensive nature should help it outperform the broader index. It’s a classic “buy and hold” anchor for your portfolio during volatile periods like this.
Deep Dive: Ashok Leyland, Betting on the Economic Revival
On the other end of the spectrum is Ashok Leyland, a company that thrives when the economy is firing on all cylinders. The commercial vehicle (CV) maker has been on a tear, even hitting an all-time high of ₹193.5 on January 23, 2026 . By January 25, it was trading at ₹192.98 .
Investing in Ashok Leyland this week is a direct bet on the Union Budget being a catalyst for infrastructure spending and a manufacturing revival. The government’s focus on roads, logistics, and public transport directly benefits CV manufacturers. If Finance Minister Nirmala Sitharaman announces a significant boost to capex, Ashok Leyland could be one of the biggest gainers on the street. However, this is a higher-risk, higher-reward play compared to HUL. It’s a strategic move for those who believe the Budget will be a strong tailwind for the real economy.
Conclusion: Your Budget Week Strategy
The Budget 2026 week presents a classic risk-reward scenario. The Nifty’s path is uncertain, but the potential for a major move is undeniable. Sudeep Shah’s dual recommendation of Hindustan Unilever and Ashok Leyland offers a smart, balanced blueprint for navigating this volatility.
By combining a defensive stalwart with a high-beta cyclical stock, you can protect your capital while still participating in any potential upside. Remember, the market’s reaction to the Budget will be swift and decisive. Having a clear plan, like the one outlined by SBI Securities, is your best defense against emotional trading. For more insights on navigating market volatility, check out our guide on [INTERNAL_LINK:building-a-resilient-investment-portfolio].