THE WINNERS OF BUDGET FY18 ARE……

By Ruma Dubey

about 8 years ago

By Ruma Dubey

The Budget is over and gone. But before we forget about it and move on, a quick look at those who have reasons to cheer; the clear winners of this Union Budget. Afterall, for the market, all that matters is not the macro data but micro-micro …the stocks that gain; it all boils down to only that! So here is a quick list of companies which stand to gain today and we will see them reaping some, if not all the advantages in FY18.

AGRICULTURE	ADVANTAGE
Target for agricultural credit for FY18 at record level of Rs.10 lakh crore To benefit from 60 days’ interest waiver announced on 31/12/16 Long Term Irrigation Fund already set up in NABARD to be augmented by 100% to take the total corpus of this Fund to Rs.40,000 crore Micro Irrigation Fund in NABARD to achieve ‘per drop more crop’ with an initial corpus of Rs.5,000 crore Model law on contract farming to be prepared Rural, agri allocation at Rs 1.87 lakh crore, up 25% (YoY) Dedicated micro irrigation fund with corpus of Rs.5000 crore MNREGA allocation increased from Rs.38,500 crore in FY17 to Rs.48,000 crore in FY18	Finolex, United Phosphorus, KSB Pumps, Advanta India, Monsanto, Bayer Crop, Rallis India, Jain Irrigation, Shakti Pumps, Dhanuka Agritech, EPC Industries
REALTY	ADVANTAGE
Affordable housing given Infrastructure status Govt doubles lending target of banks to Rs 2.44 lakh cr Govt proposes to finish 1 cr houses by 2019 for those living in kachcha houses Instead of build-up area, carpet area will be counted for affordable housing Re-financing of housing loans To make changes in capital gains tax for housing	DLF, Prestige Estate, Oberoi Realty, HCC, HDIL, Kolte Patil, Puravankara, Omaxe, Sobha Developers, Godrej Props, Ashiana Hsng, Peninsula Land
DAIRY	ADVANTAGE
Dairy processing fund with initial corpus of Rs.2000 crore and Rs.8000 crore in three years	Hatsun Agro, Prabhat Dairy, Heritage Foods, Kwality, Umang Dairy, Nestle
INFRASTRUCTURE& ROAD PROJECTS	ADVANTAGE
· 2000 km of coastal roads have been identified for development · National Highway allocation at Rs 64,000 crore Govt to expand airport capacity over next 10-15 years, with participation of private sector · Allocated Rs 3.96 lakh crore for infrastructure build	L&T, Lanco Infra, GVK Power, GMR Infra, IRB Infra, Marg Construction, IVRCL Infra, HCC, NHAI, C&C Constrution, Adani Ports, Siemens, MBL, ARSS Infra, NCC, Ashoka Buildcon
TOBACCO	ADVANTAGE
· 100% FDI to be allowed through FIPB route in marketing of food	Nestle, Glaxo, JHS Svengdaar, Godrej Inds, Dabur, Marico, Bajaj Corp
OIL & GAS	ADVANTAGE
Cuts basic customs duty on LNG to 2.5% from 5% To build two more strategic petroleum reserves besides the three that have already been completed To merge state oil companies to create a giant with over $100 billion valuation	ONGC, Oil India, IOC, BPCL, HPCL, Petronet LNG, Gujarat Gas, Deep Inds, GAIL, Cairn India
EDUCATION	ADVANTAGE
Increased allocation for women skill development to Rs 1.84 lakh cr in FY18 To set up 100 India-International skill centres To undertake reforms in UGC to improve higher education To create innovation fund for secondary education	Zee Learn, NIIT, Aptech
POWER	ADVANTAGE
Committed to achieve 100% village electrification by May 1, 2018 Countervailing duty on machinery for renewable energy cut to 6% 7000 railway stations to be solar powered To undertake second phase of solar power development for additional 20,000 MW	Tata Power, NTPC, Adani Power, GE T&D, JSW Energy, Alstom India, KEC International, Siemens, Kalpataru Power, NLC India, CESC, GE Power India
PSU BANKS	ADVANTAGE
Allocated as per the original plan under Indradhanush, Rs.10,000 crore for FY18 for recapitalization; to give more if required Resolution of financial firms amendments	BoB, Bank of Maharashtra, PNB, SBI, BoI, Union Bank, Canara Bank
CIGARETTE	ADVANTAGE
Hikes additional excise duty on various lengths of cigarettes by 2.5% & 6% Excise duty increased for handmade and machine made paper rolled bidis from Rs 21 per thousand units to Rs 28 per thousand units and Rs 78 per thousand units respectively. Increased the additional duty for pan masala from 6% to 9% Doubled additional duty to 12% for chewing tobacco, jarda scented tobacco and guthka	ITC, VST, Godfrey Phillips
FERTILISERS	ADVANTAGE
To take steps to ensure farmers get better prices for harvest To double farmer income in five years	GSFC, Deepak Fertilisers, Coromandel, GNFC, NFL, FACT,
DEFENCE	ADVANTAGE
· Defence expenditure excluding pension at Rs 2.74 lakh crore	Bharat Electronics, BEML, BEL, Reliance Defence, Walchandnagar Inds, Reliance Defence
TRACTOR/TWO-WHEELERS	ADVANTAGE
· Rs.48,000 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.

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