Long awaited Central Budget of World's biggest democracy India
Many good announcements was made by FM…. Most positive for Indian stock market right now is to allow FIIs to invest in equity mutual fund schemes,corporate infrastructure bonds,surcharge reduction,no hike in excise duties….Central Budget was welcomed by Indian stock market & given positive effect on 28-02-11 with roses by 122 points & roses 630 points on 01-03-2011…
We had tried to give as much as detailed & point to point information about announcement done & its possible effect on stock market,sector & scripts…It is our own research & views….
Main Highlights,Major Points Of Central Budget 2011-12 by which it gives positive effects on stock market/sector/scripts are as follows :
GDP GROWTH 8.6% IN 2010-11 IN REAL TERMS. EXPORTS HAD GROWN BY 29.4% DURING APRIL TO JANUARY 2010-11. INDIAN ECONOMY EXPECTED TO GROW AT 8.75-9.25% IN 2011-12 : +VE FOR STOCK MARKET AVERAGE INFLATION EXPECTED LOWER : +VE FOR STOCK MARKET DIRECT TAX CODE(DTC) PROPOSED TO BE EFFECTIVE FROM APRIL 01,2012 CASH SUBSIDY TO KEROSENE,LPG & FERTILISERS : +VE FOR CHAMBAL,NAGARJUNA NUTRIENT BASED SUBSIDY(NBS) TO COVER UREA,ACTIVELY CONSIDERING : +VE FOR CHAMBAL,NAGARJUNA DISINVESTMENT TARGET IS MORE HIGHER TO RS.40,000 CRORE IN 2011-12 : +VE FOR FII ALLOWED TO INVEST IN EQUITY MUTUAL FUNDS IN FII LIMIT FOR INVESTMENT IN CORPORATE INFRASTRUCTURE BONDS RAISED TO DOUBLE : +VE FOR STOCK MARKET,INFRASTRUCTURE COMPANIES ADDITIONAL BANKING LICENCES TO PRIVATE SECTOR PLAYERS : + VE FOR IFCI RS. 6000 CRORE TO PSU BANKS : +VE FOR VIJAYA BANK “ RS.3000 CRORE TO NABARD FOR HANDLOOM WEAVER INTEREST SUBVENTION OF 1% FOR HOUSING LOAN : +VE FOR HOUSING COMPANIES HOUSING LOAN LIMIT INCREASED TO RS. 25 LAKH :+VE FOR HOUSING COMPANIES RURAL HOUSING FUND RAISED TO RS.3000 CRORE : +VE FOR HOUSING COMPANIES TO ENHANCE CREDIT WORTHINESS TO LIG HOUSEHOLDS : +VE HOUSING COMPANIES ALLOCATION TO RKVY(RASHTRIYA KRISHI VIKAS YOJANA) INCREASED : +VE FOR AGRICULTURE,FMCG COMPANIES TO IMPROVE RICE BASED CROPPING SYSTEM ALLOCATION OF RS. 400 CRORE : +VE FOR REI AGRO,USHER AGRO,KARUTURI GLOBAL ALLOCATION OF RS.300 CRORE TO PROMOTE 60,000 PULSES : +VE FOR REI AGRO,USHER AGRO,KARUTURI GLOBAL ALLOCATION OF RS. 300 CRORE TO BRING 60,000 HACTERS UNDER PALM OIL ALLOCATION OF RS. 300 CRORE FOR IMPLEMENTATION OF VEGETABLE INITIATIVE: +VE FOR AGRICULTURAL COMPANIES ALLOCATION OF RS. 300 CRORE TO PROMOTE HIGHER PRODUCTION OF BAJRA,JOWAR,RAGI ETC.... TO PROMOTE ORGANIC FARMIG METHODS: +VE FOR KARUTURI GLOBAL ALLOCATION OF RS.300 CRORE TO PROMOTE ANIMAL BASED PROTEIN PRODUCTION 15 MEGA FOOD PARK : +VE FOR REI AGRO,USHER AGRO,KARUTURI,KRITI MODERN STORAGE CAPICITY WILL BE ELIGIBLE FOR FUNDING FROM FINANCE MINISTRY ALLOCATION OF RS.2,14,000 CRORE FOR INFRASTRUCTURE IN 2011-12 & IS UP 23.3%. : +VE FOR INFRASTRUCTURE COMPANIES TAX FREE BONDS OR RS.30,000 CRORE TO BOOST INFRASTRUCTURE DEVELOPMENT : +VE FOR INFRASTRUCTURE COMPANIES NATIONAL CAPITAL INVESTMENT IN FERTILISER TO TREAT AS INFRA SUB-SECTOR : +VE FOR CHAMBAL & NAGARJUNA FERTI EXPORTERS TO GET FAST REFUND OF TAXES PAID IF ELIGIBLE :+VE FOR REI AGRO,KARUTURI, S KUMAR,SUPER SPINNING,STURDY MEGA CLUSTER SCHEMES EXTENDED & SEVEN MEGA LEATHER CLUSTERS TO SET UP TO PROVIDE RURAL BROADBAND CONNECTIVITY TO ALL 2,50,000 PANCHAYATS ALLOCATION TO EDUCATION INCREASED BY 24% : +VE FOR EDSERVE CONNECTIVITY TO 1,500 INSTITUTIONS THROUGH OPTICAL FIBER BACKBONE PLAN ALLOCATION TO HEALTH UP BY 20% BANKING FACILITIES TO 73,000 RURAL AREAS HAVING POPULATION OVER 2,000 : +VE FOR VIJAYA BANK & RURAL BANKING SECTOR ALLOCATION TO DEFENCE INCREASED TO RS. 1,64,415 CRORE : +VE FOR ASTRA MICRO SURCHARGE REDUCED TO 5% FROM CURRENT 7.5% : +VE FOR STOCK MARKET & ALL COMPANIES PAYING SURCHARGE MAT INCREASED TO 18.5% FROM 18% TAX INCENTIVES EXTENDED TO ATTRACT FOREIGN FUND FOR INFRASTRUCTURE : +VE FOR INFRASTRUCTURE COMPANIES BENEFIT OF INVESMENT LINKED DEDUCTION TO FERTILISER COMPANIES : +VE FOR CHAMBAL & NAGARJUNA INVESTMENT LINKED DEDUCTION TO BUSINESS DEVELOPING AFFORDABLE HOUSING : +VE FOR HOUSING COMPANIES WEIGHTED DEDUCTION ENHANCED TO 200 % FOR RESEARCH DONE IN LABORATORY :+ VE FOR ANUS LAB,LUPIN,ARVIND REMEDIES NO CHANGE IN CENTRAL EXCISE & PEAK CUSTOM DUTIES : +VE FOR STOCK MARKET ,AUTO EQUIPMENTS FOR STORAGE,WEARHOUSE EXEMPTS FROM EXCISE DUTY BASIC CUSTOM DUTY FOR AGRI MACHINERY REDUCED TO 2.5% FROM 5% : +VE FOR AGRICULTURE & FMCG COMPANIES BASIC CUSTOM DUTY FOR MICRO-IRRIGATION EQUIPMENT REDUCED TO 5% FROM 7.5% : +VE FOR RUNGTA IRRIGATION DE-OILED RICE BRAN CAKE FULLY EXEMPTED FROM BASIC CUSTOME DUTY : +VE FOR REI AGRO,USHER AGRO CUSTOM DUTY OF PET-COKE & GYPSUM REDUCED TO 2.5% : +VE FOR CEMENT COMPANIES BATTERIES IMPORTED FO ELECTRICAL VEHICLES FULLY EXEMPT FROM BASIC CUSTOM DUTY & CONCESSIONAL RATE OF CENTRAL EXCISE DUTY : +VE FOR M&M CONCESSIONAL EXCISE DUTY OF 10% FOR FUEL CELL TECHNOLOGY VEHICLE. MANY BENEFITS,DUTY EXEMPTION & REDUCTION FOR HYBRID VEHICLES:+VE FOR M&M EXCISE DUTY OF LEDs REDUCED TO 5% & SPECIAL CVD FULLY EXEMPTED : +VE FOR MIC ELE FULL EXEMPTION OF CRUDE PALM STEARIN USED TO MAKE LAUNDRY SOAP FROM BASIC CUSTOMS DUTY : +VE FOR GODREJ CONSUMER EXCISE DUTY EXEMPTION FOR CAPITAL GOODS NEEDED FOR UMPPs : +VE FOR POWER COMPANIES,BHEL RELIEF MEASURES FOR AGARBATTI,LACTOSE,SANITARY NAPKINS,DIAPERS MFGS. : +VE FOR AMBICA AGARBATTI,LACTOSE SERVICE TAX REMAINS UNCHANGED AT 10% SHIP OWNERS CAN IMPORTS PARTS DUTY FREE TEXTILE,YARN MFGS CAN GET DUTY CUTS & BENEFITS : +VE FOR WINSOME YARN,Here are the few hot scripts sector wise. Positive sectors related news came out already.So,these companies will be in lime light & may create firework in coming days.
Sector : Co.’s Will Be benefited if Good Announcement :
Infrastructure : | IRB Infra,Unitech,HDIL,DLF,GMR,LITL,Rel Infra,HCC,Sturdy, CHD Developers,Asahi Infra |
Housing : | Unitech,HDIL,DLF,HCC,Ajmera,Sturdy |
Disinvestment : | Hind Copper |
Agriculture : | REI Agro,Karuturi Global,Usher Agro,Rungta Irrigation,kriti Ind,Kriti Nutriens,Godrej Consumer |
Power : | R Power, JP Power, Suzlon, NHPC, NTPC,REC,Sturdy |
FMCG : | Godrej Consumer,REI Agro,Karuturi,Kriti Nutriens, |
Banking : | Vijaya Bank |
Pharma : | Anus Lab,LUPIN,Arvind Remedies |
Textile : | |
Micro Finance : | IFCI,TFL,Ind.Lease Development, |
Fertilizers : | Chambal,Nagarjuna |
Housing Finance : | IFCI,LIC |
Chemicals : | HOCL(Hind Organic), |
Irrigation : | Rungta Irrigation |
E-Governance & IT Education : | Edserve |
Auto : | M&M,Maruti,Sturdy |
Media & Film: | RBN,Shri Ashtavinayak,ATN Inter |
Exports: | REI Agro,Karuturi,Usher Agro,S Kumar,Super Spinning, Sturdy Ind,Godrej Consumer,Winsome Yarn,M&M |
Textile Yarn: | Winsome Yarn, |
Electric Vehicles: | M&M |
Weightage Deduction of 200% : | Anus Lab |
High Risk Traders/Investors, Keep Eyes on, Ageegold,Birla Erricson,Ferro alloys,Hind Motor,ITI,Calcom Vision,Noble Explos,Onward Techno,Ispat,Bellary,Austral Coke,FSL,Caprihans… from respective sectors.
Please Note that, all sectors & scripts mentioned in this article is purely our personal opinion only. Take decision of investment at your risk & at your end.
May u all get profits in all scripts u have or u r going to trade.
With Best wishes & regards,
Paras K.Ghelani(PG)
With Best wishes & regards,
Paras K.Ghelani(PG)
Research Analyst,Stock Market Consultant & Adviser,
Yahoo ID : smile_starter_for_u_1
Email : smilestarterforu@gmail.com