Budget 2017-18 sector/stock Impact ( positive and negative )

Auto Sector – Tractors

There is an overall positive impact on this sector. Government committed to double farmer income in five years.

The companies like Escorts, HMT, and VST Tillers fall under this sector.

Banks ( Public Sector )

There is a positive impact on overall banks public sector. Resolution of financial firms amendments to help banking sector. Government allocated Rs 10,000 crore for recapitalization of PSU banks.

The banks like SBI, Bank of Baroda, and PNB fall under this sector.

Cement – Major

There is positive impact on this sector. Government allocated Rs 3.96 lakh crore for infrastructure.

Such as UltraTech Cement, Shree Cements, and Ambuja cements comes under this sector.

Cigarettes

Government hikes excise duty on various lengths of cigarettes by 2.5% & 6%. Thus, this sector shows negative impact.

The cigarette companies like ITC, Godfrey Phillip, and VST are few examples of this sector.

Computers – Software – Training

Government hiked allocation for women skill development to Rs 1.84 lakh crore in FY 2018. It’s all ready to set up 100 India-International skill centres. Government to undertake reforms in UGC to improve higher education. It is creating innovation fund for secondary education. Thus, there is a positive and good impact on this sector.

The companies like Zee Learn, Aptech, and NIIT falls under this category.

Construction & Contracting – Civil

National highway allocation at Rs 64,000 crore. So, this sector proves to be a positive impact.

Such as the companies like NCC, Ashoka Buildcon, and Hind Construction are the examples of civil sector.

Construction & Contracting – Housing

Instead of build-up area, carpet area will be counted for affordable housing. Government proposes to finish 1 crore houses by 2019 for those living in kachcha houses. Economic Survey: Over Rs 16,000 crore made available to self-help groups. Hence, there is positive impact on this sector.

The companies like Ashiana housing, Peninsula, and Land Nila comes under this sector.

Union budget sector wise

Construction & Contracting – Real Estate

Government proposes to make changes in capital gains tax for housing. Re-financing of housing loans to give impetus to real estate sector. Affordable housing to be given infra status. Thus, there is a positive impact on this sector.

The real Estate companies like DLF, Oberoi Realty and Godrej Prop are few examples of this sector.

Engineering & Capital goods

Government doubles lending target of banks to Rs 2.44 lakh crore. Government allocated Rs 3.96 lakh crore for infrastructure, announces a new trade infrastructure export scheme. So, there is a positive impact on this sector.

The companies like Larsen, Adani Ports, and Siemens are few examples of this sector.

Electric Equipment

Economic Survey shows that over 20 crore LED bulbs have been issued via Ujjwala Yojana. Hence, there is good impact on this sector.

The companies like Havells India, Crompton Greave, and Techno Electric falls under this sector.

Electricals

Defence expenditure excluding pension at Rs 2.74 lakh crore. Therefore, it creates a good impact on this sector.

Bharat Electricals, CG Consumer, and Genus Power are few examples of this sector.

Engineering

Positive impact is shown by this sector, as government proposes to invest Rs 1.31 lakh crore in railways in 2017-18.

Few examples of this sector are Quess Corporation, Shanthi Gears, and LG Balakrishnan.

Fertilizers

Government will take steps to make sure farmers get better prices for harvest. Government committed to double farmer income in five years. Economic Survey shows that focus of government has been holistic development of Agriculture. Thus, this shows us a positive impact on fertilizer sector.

The companies like Coromandel Int, GSFC, and GNFC falls under this sector.

Impact of Demonetization on Real Estate & its effective resolution plan

Food Processing

This sector is showing good impact as government is going to set up dairy processing fund.

Nestle, Britannia, and GlaxoSmith Con are few of the food processing companies which comes under this sector.

Hospitals & Medical Services

This sector is not showing positive impact. New rules for pricing medical devices should benefit common man.

Apollo Hospital, Fortis Health, and Narayana Hruda are the few examples of this sector.

Hotels

5 special tourism zones are to be set up in partnership with states. Thus, goods results are going to be announced soon by this sector.

The Hotels like Indian Hotels, EIH, and Mahindra Holiday comes under this sector.

Infrastructure – General

Government is trying to expand airport capacity over next 10-15 years, with participation of private sector. There would be Increase in allocation for infrastructure. At least 25 stations re-development contracts will be awarded in 2017-18. Thus, good impact is shown by this sector.

Companies like Larsen, Adani Ports, and Siemens are few examples of this sector.

Refineries

Government will cut basic customs duty on LNG to 2.5% from 5% and proposes to create integrated PSU oil major. This shows positive impact on this sector.

Few examples of this sector are Reliance, ONGC, and IOC.

Oil Drilling and Exploration

Government is all ready to set-up new crude oil reserves. It shows a positive impact to this sector.

ONGC, GAIL, and Cairn India are few of the oil drilling and exploration companies.

Personal Care

Government raises allocation for MNREGA from Rs 38500 crore in FY 2017 to Rs 48000 crore in FY 2018. A good impact is shown by this sector.

Companies like HUL, Godrej Consumer, and Dabur India comes under this sector.

Plastics

Long-term irrigation fund set up in NABARD, additional corpus Rs. 20,000 crore which is showing a very good impact on this sector.

Supreme India, Astral Poly Tech, and Jain Irrig (D) are few plastic companies which fall under this sector.

Power – Generation & Distribution

A positive impact is there in this sector. Countervailing duty on machinery for renewable energy cut to 6%. Focus on solar continues as 7000 stations to be solar powered. Government is going to take up second phase of solar power development for additional 20,000 MW.

Such as NTPC, Power Grid Corporation, and NHPC are the few companies which come under this sector.

Power – Transmission & Equipment

Government is going to achieve 100% rural electrification by May 1, 2018. Thus, positive impact is shown by this sector.

GE T&D India, Kalpataru Power, and GE Power India are few of the power transmission and equipment companies.

Real Estate

Government reduces existing tax rate for personal income of Rs 2.5-5 lakh to 5% from 10%. Government doubles lending target of banks to Rs 2.44 lakh crore. So, there is a positive impact on this sector.

Companies like Aditya Birla, DLF, and Oberoi Realty fall under this sector.

Retail

Government reduces existing tax rate for personal income of Rs 2.5-5 lakh to 5% from 10%. It is showing a good impact on this sector.

Aditya Birla, Future Retail, and Trent are few companies which come under this sector.

Textiles – Denim

Economic Survey reveals that Rs 6,000 crore were announced to boost employment & exports in apparels industries, which results in the very good impact on this sector.

The companies like Arvind and Nandan Denim fall under this sector.

Textiles – General

Government proposes to carry-forward the MAT to 15 years from 10 years, which will show a positive impact on the companies like Bombay Rayon, Sutlej Textiles, and Garware Wall.

Transport & logistics

There is a positive impact on this sector as transport sector allocated Rs 2.41 lakh crore.

Interglobe Avi, Container Corp, and Aegis Logistics are few of the companies in this sector.

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