Preview of Union Budget 2017

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*Key Budget Expectations*
– Reduction in taxes to boost the consumption demand.
– Higher allocation towards rural and agriculture schemes.
– Real estate and Infrastructure spending – key to increase jobs.
– Commentary on capital gains tax to be watched by investors.
– Digital economy to be a focus area.
– GST rollout.
*Sector Key expectation from the budget Expected:*
*Automobile:*
Increase in the income tax slabs and uniform excise duty.
*Expected Outcome Positive.*
*Banking:*
Higher Recapitalization of PSU banks and addressing NPA issues, housing for all.
*Expected Outcome Positive.*
*Capital Goods*
Expect higher allocation to the railways and defense which will provide fillip to the sector.
*Expected Outcome: Positive*
*Cement*
Infrastructure spending and housing scheme.
*Expected Outcome: Positive*
*FMCG*
Increase in Rural spend, Increase in the income tax slabs to boost consumption.
*Expected Outcome Positive*
*Infrastructure:*
Higher budgetary allocation, announcements towards flagship programs, could create more interest for private sector participation.
*Expected Outcome: Positive*
*Information Technology*
Some Tax benefits
*Expected Outcome: Neutral*
*Metals & Mining*
Expect measures to protect domestic aluminum players which are troubled with cheap imports.
*Expected Outcome: Neutral*
*Oil & Gas*
Expect measures to boost the LNG industry.
*Expected Outcome: Positive*
*Pharmaceuticals*
Higher budgetary allocation for healthcare and R&D tax benefits.
*Expected Outcome: Positive*
*Power*
Tax exemptions for renewable energy sector, possible reduction in clean energy cess.
*Expected Outcome: Positive*
*Real Estate*
Announcement on REITs tax structure and higher allocation towards Housing for All scheme could be made.
*Expected Outcome: Positive*
*Tyre*
Re-imposition of anti dumping duty to curb tyre imports from China.
*Expected Outcome: Positive*
*Budget centric stock picks*

ASIAN GRANITO INDIA
MIRZA INTERNATIONAL
AXIS BANK
LIC  HOUSING FINANCE
DEWAN HOUSING FINANCE
LARSEN & TOUBRO
POWERGRID
KEI INDUSTRIES
ITC
P&G
Please note: *Union Budget will be presented by Finance Minister Arun Jaitley tomorrow 1st Feb 2017.*
Source: Angel Broking

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