Budget 2015: Likely measures & stocks to watch out!!

Make in India’ to get a boost - The government is expected to roll out incentives to boost manufacturing in an effort to support the government’s ‘Make in India’ campaign. Differential rates of Minimum Alternate Tax for SEZ and MSMEs may be possible. (MAT was introduced to ensure no profit-making company is exempted from tax liability. The current rate for MAT is 18.5%.). Government to give clarity on road map for tax reforms (GST and DTC) to boost and sustain growth in taxes
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 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 Home Loan - 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 Capital infusion in PSU Banks and Structural reforms - Recapitalizing banks - Positive for PSU Banks Irrigation - Micro Irrigation equipment/systems to be made eligible for 'priority sector lending to agriculture' - Positive – Jain Irrigation & entire fertilizer 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 Railway Infrastructure - Wagon and Coaches procurement program - Railway Signalling, Safetly and other infra project announcement - Positive for : Pennar, Texmaco,Titagarh, Kalpataru, Siemens, ABB GST Implementation - Positive FOR ECONOMY - 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 Improving labour laws especially for SMEs will benefit auto ancillary sector 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 - ACC, Ultratech, Ambuja Cement, JK Lakshmi Cement etc. Expect increase tax on Cigarette - Negative for ITC Expect reduction import duty on Gold from 10% to 6% - Positive for Jewellery stocks like Titan Incentives for manufacturing of domestic set top boxes, Tax incentive OR exemption for cable operators and DTH players for digitization initiative - Positive for DISH TV, Den Network, Hathway Cable Cut export duty on iron ore (currently blanket export duty at 30%) - Positive for Sterlite (SSLT) and NMDC 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 Allocation of Ganga Action plan - Positive for VA Tech Wabag