Budget time is tense time on Dalal Street. But those who get their guess-work right end up richer!
This Budget is expected to be different from the previous ones, and why! It has already put an end to some age-old conventions, including a break from the traditional of presenting the Budget on the last working day of February.
Further, it will incorporate the Rail Budget and drop the distinction between Plan and non-Plan expenditure for the first time.
In terms of practicality, this Budget must do something to heal the wounds caused to the economy by the demonetisation drive launched in November 2016.
So, there are projections that tax slab limits will be raised to boost consumption and public capex will go up to infuse life in the economy and lead the capex revival from the forefront. Besides, further push to rural sector schemes is likely to ease the distress in the hinterland.
“We expect the government to execute this by tweaking the income-tax slabs (both individual & corporate tax). The government is also likely to make higher budgetary allocations for welfare schemes (i.e. MNREGA) to enhance employment opportunities in rural India and incentivise agriculture growth in order to enhance farm income and productivity,”
The government is also likely to announce measures to promote the digital economy, increase spend on railways, provide additional tax breaks to promote startups, construction activities and affordable housing.
Considering the recent road bumps in the runup to the Budget thanks to the demonetisation drive, the above expectations clearly signal a somewhat ‘feel-good’ sentiment around the Budget.
With healthy tax inflows, the government is expected to play a crucial role with clear action plans to further push economic growth and create investor confidence.
On Dalal Street, sectoral bets on the Budget have been in line with these expectations. We found 20 stocks in brokerage recommendations for various sectors that seem to have solid ground for a Budget boost.
Hindalco and Vedanta: In view of rising imports and considering the excess capacity in Indian refined copper industry, it is expected that the basic customs duty on copper products will be increased from 5 per cent to 10 per cent. Such an announcement will be positive for Hindalco and Vedanta.
ONGC, Cairn, Oil India: The energy sector is expecting a revision of the cess on domestic crude production. Any reduction of oil cess will benefit the domestic upstream companies. However, the brokerage does not expect any revision in the current 20 per cent ad-valorem cess on oil.
- Defence sector likely to see up to 10% hike in Budget allocation
- Union Budget-Rail Budget merger: Modi govt breaks the legacy
- 20 stocks that should get push from Union Budget 2017
- Time to reward job creators as Modi crosses halfway mark
- How Budget can make taxpayers happy…without cutting rates
- India readies budget to soothe voters after Modi’s shock cash crunch
- Bankers must be allowed to be aggressive to help credit growth
- New Budget must address India’s reputation problem
- CII calls for smooth tax dispute settlement provision in Budget 2017
- Young India’s budget expectations: Cheaper gadgets, more jobs
- Four taxes that should be lowered or abolished
- Finance Ministry may scrap sugar cess in Budget 2017
- Government may make Aadhaar must for rail concession in Budget 2017
- The Budget will tell if aspirational Modi is now a populist Modi
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
Our Some Best Services Read it Here…
www.capitalstars.com | T:+91-731-6790000,6669900