Union Budget 2015-16 India Suggestion : Watch out for 15 stocks as Jaitley reads out speech

Bulls look super enthusiastic for Arun Jaitley’s Budget FY16 to be presented tomorrow. Just a day before the Budget, the Sensex ended up 473.47 points or 1.6 percent at 29220.12 and the Nifty was up 160.75 points or 1.8 percent at 8844.60. PSU banks lead the upmove while HDFC Bank twins, ICICI Bank and Axis Bank were top gainers in the Sensex.

Among the losers were ITC, GAIL, Wipro and HUL. So, here are 15 stocks to keep an eye on

Housing for all and relaxation on personal taxation slab

Real estate cos: HDIL , Unitech , Puravanakara , smaller real estate players

Tax claity on REITS

REITs may be exempt from DDT/MAT and long-term capital gains exemption for sponsors Stocks: DLF , Prestige , Adani Ports Banks Clarity on holding co structure for govt. banks, Re-capitalization of government banks

Oil & gas

Custom duty hike of 2.5-5 percent expected: Positive for ONGC , OIL ; Negative for OMCs FY16 subsidy figure over Rs 35000 crore: Positive for ONGC, OIL


Excise duty hike up 10 percent factored in Lowering or no increase in 64 mm cigarettes

Titan/ jewellery cos

Cut in gold import duty: Positive for Titan

Power sector

Subsidy, tax exemption for stranded gas assets: Positive for GMR Infra , Lanco Infra , GVK

Renewable sector

Renewable energy focus area, an eye on funding kind of structure like REIT or tax accelerated depreciation.


Union Budget 2015-16 India Update : Housing for all to boost ind demand: Cera Sanitaryware

Atul Sanghvi, ED of Cera Sanitaryware spoke about the likely benefits from government’s focus on sanitation and low housing and housing for all.

As the Prime Minister (PM) has announced housing for all by 2022, we anticipate that there will be a big boost in the demand of housing and especially for companies like us. We are very eager to see what exactly transforms in the case of 100 smart cities because I believe that the affordable housing will be the foundation for the smart cities.

Enquiries have started flowing in.We are getting the enquiries for sanitaryware from the corporates who are planning the corporate social responsibility (CSR) activities in sanitation. At the moment, we have decided to concentrate in our core business of sanitaryware and faucets.


Union Budget 2015-16 Economic Survey: Need fixed income products; see GDP at 7.8%, says Barclays

Economic Survey_6

Siddhartha Sanyal, Chief India Economist, Barclays says there is a lot of foreign institutional investor (FII) interest in fixed income instruments and the government should launch these soon in order to pool in significant capital. In an interview to CNBC-TV18, Sanyal says areas like defence and railways can get a lot of capital by means of bonds. Furthermore, Sanyal expects the real growth rate for FY16 to be at 7.8 percent; WPI inflation at 3 percent and revenue growth in the low teens.

I do not expect that and I do not necessarily see any conflict in the statements what they have made and I tend to agree a lot Dr Chaudhuri what he mentioned just now. Basically what is happening now if you see the effect of lower petroleum prices that itself is giving the government a benefit close to one percentage point of the gross domestic product (GDP) as per our estimate. We are factoring in FY16 fuel subsidy to be lower by around Rs 50,000 crore and the higher excise duty on petroleum products can be anywhere around Rs 60,000 -70,000 crore for the full year. As a whole we are talking about a number close to around Rs 1,20,000 crore for the full year benefits only from the petroleum affect which is one percent of the GDP.

Now you can channelise this expenditure much more meaningfully towards some of the more productive investments. If you see in terms of some other numbers fiscal deficit to meet 4.1percnet fiscal deficit will be around Rs 5,30,000 crore. To meet 3.6 percent next year we are talking about something like Rs 5,00,000 crore so you to eventually stable out Rs 30,000 crore odd you have a buffer of around Rs 1,20,000 crore that is a very meaningful buffer.

The other part of the story we all talk about the revenue buoyancy or the revenue linkage with growth. The other part which we tend to miss out is the benefit the fiscal headlines the fiscal numbers can get from a lower inflationary situation. A lot of government’s expenditure is actually due to wages or salary which are inflation-linked, interest out go as well as subsides etc which we mentioned and project cost overrun so all these things will enjoy very significant tailwinds going ahead.


Union Budget 2015-16 Economic Survey: Modify PPP model, highway projects must shift to e-tolling

The rate of stalling of projects has reduced over the last three quarters, said the Economic Survey. Stall projects accounted for 7 percent of GDP in the December quarter, compared with  8.3 percent during the same period last year.

The key now was to revive public investment to grow infrastructure, the Survey said. It said, the revival of interest by private players and banks in public private partnership (PPP) would require a review of contracts. It said the risk in PPP model should be transferred to those who can manage it.

The Survey said PPP Financing structure should attract pension and insurance funds, adding that high projects should shift to e-toll systems and escrow accounts. The Survey also said efforts were needed to reform direct tax system.

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