Budget +ve for Infra, Power, Bank, Pharma: Maximus Sec

Maximus Securities review on Union Budget 2010-11:

Indian Market has reacted positively to the Budget announced today as it proposed market friendly measures. Reduction in surcharge on corporate tax, lower fiscal deficit projection and roadmap for rollout of GST and DTC was welcomed by the market. The Budget is positive for Infrastructure, Power, Banking, NBFC, Pharma and Hotel Sectors while it is negative for Auto, Technology and PSU OMCs.

There is also revision in tax slab for personal tax which will lead to savings of nearly Rs 26000 crore for the individuals. The increased consumption due to increased savings will help the economy to achieve the expected double digit growth. However hike in excise duty for petrol and diesel has led to increase in diesel price by Rs 2.58 per litre and petrol by Rs 2.67 per litre. This will lead to inflationary pressure.

However Indian markets movemnet next week will depend on how the global markets pan out. US markets have turned volatile as sentiment took a hit from recent data showing a weaker-than- expected labour market. Meanwhile, global credit agencies have warned of further downgrades to Greece, which is struggling to tackle its debt crisis.

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