BUDGET FY17 - GAINERS AND LOSERS

By Research Desk
about 8 years ago

BUDGET FY17: WINNERS AND LOSERS

 

By Ruma Dubey

Here is a quick look at some of the announcements made in the Budget and how it will impact companies in the various sectors. Some are obvious gainers like always in all Budget, the agri stocks and some are the usual losers, like cigarette companies. Take a look and take stock of where you stand post the Budget.....

AGRICULTURE

ADVANTAGE

·         Rs.35,984 crore allocated for agriculture

·         To move from food security to doubling farmers income in the next 5 years

·         To bring 28.5 lakh hectares under irrigation; AIBP allocation at Rs.17,000 crore

·         89 irrigation projects to be fast tracked

·         Rs.15,000 crore for interest subvention on farm loans

·         5 lakh acres of land to be brought under organic farming in three years under KrishiVikasYojana

·         Irrigation fund worth Rs.20,000 crore to be set up under NABARD

·         Rs. 850 crore spend over the next couple of years on animal husbandry, cattle and livestock breeding

·         Rs.412 allocated for organic farming

·         228% jump in allocation to gram panchayats.

·         Rs.38,500 crore, highest ever allocation under MNREGA

Finolex, United Phosphorus, KSB Pumps, Advanta India, Monsanto, Bayer Crop, Rallis India, Jain Irrigation, Shakti Pumps, DhanukaAgritech

REALTY

ADVANTAGE

·         Propose 100% deduction to undertakings for construction of affordable housing

·         Deduction for additional interest of Rs 50,000/yr for loans up to Rs 35 lakh sanctioned in 2016-17 for 1st time home buyers

·         Raise personal I-T house rent exemption to Rs 60,000 from Rs 24,000/year

DLF, Prestige Estate, Oberoi Realty, HCC, HDIL, Puravankara, Omaxe, Sobha Developers, Godrej Props, AshianaHsng, Peninsula Land

NBFCs

ADVANTAGE

·         NBFCs shall be eligible for deduction to extent of 5% of its income in respect of provision for bad debts

·         Amendments in SARFAESI Act 2002 to enable sponsor of an ARC to hold up to 100% stake in ARC.

·         Foreign investment in insurance, pension sectors up to 49% via automatic route

·         Increase in crop insurance

SKS Micro, Reliance Capital, Kotak, M&M Finance, IIFL Holdings, Baja Finserv, Bajaj Holdings, L&T Finance, Max Financial

INFRASTRUCTURE& ROAD PROJECTS

ADVANTAGE

 

·         Rs.55,000 crore for roads and highways

·         Rs.15,000 crore to be raised by NHAI via bonds in FY17

·         Total outlay at Rs.97,000 crore for roads and highways

·         68 airports to be developed

·         10 out of the 25 non functional airstrips to be developed

L&T, Lanco Infra, GVK Power, GMR Infra, IRB Infra, Marg Construction, IVRCL Infra, HCC, NHAI, C&C Constrcution, MBL, ARSS Infra, NCC, AshokaBuildcon

FOOD PROCESSING

ADVANTAGE

·         100% FDI to be allowed through FIPB route in marketing of food

Nestle, Glaxo, JHS Svendgaard, Godrej Inds, Dabur, Marico, Bajaj Corp

MISCELLANEOUS

 ADVANTAGE

·         Allocation of Rs 9000 crore towards Swachh Bharat Mission. 

AtoZ Maintenance, Nitco, Kajaria, HSIL, Somany Tiles

EDUCATION

ADVANTAGE

  • 62 new NavodayaVidyalayas will be opened
  • Higher Education Financing Agency to be set-up with initial capital base of Rs. 1000 crore.
  • 10 public and 10 private educational institutions to be made world-class.
  • Digital repository for all school leaving certificates and diplomas.

Educomp, Everonn, NIIT

POWER

ADVANTAGE

  • Propose Rs 8,500 cr for rural electrification
  • Committed to achieve 100% village electrification by May 1, 2018
  • To up FY17 allocation for electrification by 50%
  • Electrification of 2000 Km 

Tata Power, NTPC, Adani Power, JSW Energy, Alstom India, KEC International, Siemens, Kalpataru Power

PSUs

ADVANTAGE

  •  Divestment target for FY17 at Rs.35,000 crore.Crude Cess reduced from Rs.4,500 PMT to 20% ad- voleram duty

ONGC, Oil India

CIGARETTE

DISADVANTAGE

  • Hikes excise duty  on tobacco products except beedis by 10-15%

ITC, VST, Godfrey Phillips

TEXTILES

DISADVANTAGE

  • Higher excise on readymade garments priced at Rs 1,000 or more

Arvind, Aditya Birla Fashion, Kitex Garments, Indo Count,, Nandan Denim

AVIATION

DISADVANTAGE

  •  Excise duty on air turbine fuel has been hiked from 8% to 14%

Indigo, Spicejet, Jet Airways

ALUMINIUM

ADVANTAGE

  • Import Duty hiked from 5% to 7.5% to save the industry from challenge of cheaper imports

Vedanta, Hindalco, Nalco

IT - TRAINING

ADVANTAGE

  • Govt to focus on social sector especially health care, education & skill development
  • to set up high education financing agency with Rs 1,000 cr capital
  • Regulatory architecture to be provided to ten public and ten private companies

Aptech, Zee Learn, NIIT, MT Educare

MINING

ADVANTAGE

  • Propose to scrap export duty on low grade iron ore
  • Clean energy cess for coal and lignite Rs 400/tonne

Vedanta, Coal India, NMDC, Neyvelli Lignite

OIL & GAS

ADVANTAGE

  •  Cess on crude reduced from Rs 4500/MT to 20% ad valorem
  • To incentivise gas production from deep sea &ultra deep waters

GAIL, ONGC, Cairn India, RIL, Oil India, Petronet LNG, Deep Inds, Aban Offshore, HOEC, Jindal Drilling

GOLD & DIAMOND

DISADVANTAGE

·         Introduction of 1% excise duty on gold and diamond jewellery without input credit or 12.5% excise with input credit 

PC Jewellers, Thangamayil, TBZ, Titan

           AUTOMOBILE 

DISADVANTAGE

  • Infrastructure cess on Petrol/LPG/CNG driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1200cc
  • 2.5% cess on diesel driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1500cc
  • 4% cess on other higher engine capacity motor vehicles and SUVs and bigger sedans

M&M, Tata Motors, Maruti, Ashok Leyland, Force Motors

TRACTOR/TWO-WHEELERS

ADVANTAGE

·         Rs.38,500 crore, highest ever allocation under MNREGA

·         Aim of the FM to double farmer income and other rural/agriculture push will push up demand for tractors and two wheelers

 

Eicher, Escorts, Punjab Tractors, M&M, TVS, Bajaj, Hero Moto.

PSU BANKS

DISADVANTAGE

·         Recapitalization of banks at Rs.25,000 cr much below what was expected

BoB, Bank of India, Bank of Maharashtra, PNB, Allahabad Bank, Oriental Bank, Canara Bank

EXCHANGE

ADVANTAGE

·         Foreign companies can increase stake in local stock exchanges to 15% from 5%. Introduction of new Option Contracts by SEBI.

MCX

 

 

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