SEBI has announced market to open on Saturday, February 28, 2015 during Budget 2015 session. EquityPandit has listed down the possible decisions to be taken in Budget 2015 sessions and stocks that may benefit from these decisions, if taken. This would help you to take better decision and gain maximum out of Budget session that is going to be held on Saturday, February 28, 2015.
– The government may opt for setting up of holding company to improve operational efficiency in management of the state run entities and also allocate funds towards further capitalization of banks – Positive for PSU Banks
– Capital infusion in PSU Banks and Structural reforms – Recapitalizing banks – Positive for PSU Banks
– Tax-saving fixed deposits currently have a 5-year lock – Expectation is for a 3-year lock – Positive for banks, level playing field with other assets.
Life Insurance, Mutual Funds
– Expectation Rs2lakh investment limit (From Rs1.5lakh of section 80C of the Income Tax Act) – Positive for ICICI Bank, HDFC, Max India, Reliance Capital, Aditya Birla Nuvo
– Tax deduction available on interest (currently INR2 Lakh) and principal repayment (INR 1.5 Lakh under Section 80C) of home loan – Further increase in limits – Positive for Banks and Housing Finance companies like India Bull Housing, Repco, Dewan, HDFC, LIC Housing
Irrigation and Agriculture
Micro Irrigation equipment/systems to be made eligible for ‘priority sector lending to agriculture’ – Positive – Jain Irrigation & entire fertilizer
Electrical and Automation
Smart Cities – Budget allocation for Smart City Projects – Positive for the capital goods, Cement and Infra sector: ACC, L&T. More positive for companies having presence in smart electrical products: L&T,Alstom T&D,Siemens,ABB, Schneider electric, Honeywell Automation.
Reform in T&D Segment – Continuation of APDRP and RGGVY schemes Incentive for distribution companies to reduce T&D losses – Positive for Power T&D Companies Alstom T&D, Kalpataru Power, KEC, Crompton Greaves, ABB, Siemens.
Wagon and Coaches procurement program – Railway Signalling, Safetly and other infra project announcement – Positive for : Pennar, Texmaco,Titagarh, Kalpataru, Siemens, ABB
– Positive for Entire Economy including Entire FMCG industry
Increase in allocation of funds from National Clean Energy – Positive for Renewable power players-Suzlon, Solar Industries
Increase in allocation of funds for strengthening sub-transmission and distribution systems – Positive for Powergrid, Reliance Infra, Tata power, Torrent power
Improve sanitation facilities – Positive for HSIL, Cera Sanitaryware, Kajaria Ceramics, Sintex
Tax sops for enhancing of “Make in India” programme, Increased allocation for Defense Sector – Positive for Defense related stocks like BEL, L&T, Astra Micro, Centum Electronics, Rolta
Infrastructure spending including projects such as DMIC, roads, metros – Positive for ACC, Ultratech, Ambuja Cement, JK Lakshmi Cement etc.
Cigarette and Tobacco products
Expect increase tax on Cigarette – Negative for ITC
Expect reduction import duty on Gold from 10% to 6% – Positive for Jewellery stocks like Titan
Cut export duty on iron ore (currently blanket export duty at 30%) – Positive for Sterlite (SSLT) and NMDC
Real Estate and Housing Finance
Focus on affordable housing (Pacca Makan) – Easing of taxation norms for REITs to provide parity in taxation regime between various investment platforms – Positive for Real Estate and Housing Finance stocks like India Bull Real, DLF, small housing player – Housing Finance stocks like Dewan Housing, LIC Housing.