1) FDI: Limit of foreign direct investment can be increased to 49% from the existing limit, Earlier Left was opposing the proposal of allowing share of FDI. Insurance companies stock and other companies who are related to FDI can gain looking at the brighter prospects in terms of availability of finance / funds
2) Disinvestment: Disinvestment or diluting government stake in companies will be a major agenda. The companies from which government can sell out its share can be BHEL, NTPC
3) Power & Infrastructure: Power and infrastructure is expected to focused in the budget and may lead to long term rally in power and infrastructure stock
4) Agriculture: RCF And other fertilizer stock are expected to rally post budget, because agriculture will be main focus area for the govement to improve it’s bottomline, but weak monsoon may cause a push back to the fertilizer stock.
5) STT: Security transaction tax is supposed to be abolished in the budget so the companies who’s revenue model is based on brokerage of stock traded will be benefited, as the contribution from the retail investors in the equity market will increase. Market will also improve because the entry load on mutual funds is supposed to be withdrawn and exit load is supposed to be brough down, this will increase the participation of investors.
6)Textile: Textile industry is facing a stiff competition from neighboring countries, so the import duty can be reduced the way there is no import duty on cotton, Technology up gradation fund scheme (TUFS) is likely to be extended, textile companies stocks will be sky rocketing from there current prices
2) Disinvestment: Disinvestment or diluting government stake in companies will be a major agenda. The companies from which government can sell out its share can be BHEL, NTPC
3) Power & Infrastructure: Power and infrastructure is expected to focused in the budget and may lead to long term rally in power and infrastructure stock
4) Agriculture: RCF And other fertilizer stock are expected to rally post budget, because agriculture will be main focus area for the govement to improve it’s bottomline, but weak monsoon may cause a push back to the fertilizer stock.
5) STT: Security transaction tax is supposed to be abolished in the budget so the companies who’s revenue model is based on brokerage of stock traded will be benefited, as the contribution from the retail investors in the equity market will increase. Market will also improve because the entry load on mutual funds is supposed to be withdrawn and exit load is supposed to be brough down, this will increase the participation of investors.
6)Textile: Textile industry is facing a stiff competition from neighboring countries, so the import duty can be reduced the way there is no import duty on cotton, Technology up gradation fund scheme (TUFS) is likely to be extended, textile companies stocks will be sky rocketing from there current prices