Budget 2010 - pragmatic, progressive, prudent: KRChoksey

The report says, "The mean reversal towards fiscal balance has started and through the budget FM has been able to achieve a fine balance between the dual objectives of maintaining growth at early stage of economic recovery and fiscal consolidation. Infrastructure which has been a bottle neck to higher GDP growth for a long time, while rural growth is a must for inclusive growth. Both the issues continue to be the key thrust areas and through extension and higher allocation to NHAI, other infrastructure projects and policies like Bharat Nirman & NREGA government has addressed them simultaneously."

"Though FM has not announced any Big reforms, he lays the foundation for fiscal consolidation and tax reforms to be introduced next year. Partial rollover of excise duty and increase in personal tax slab was in-line with market expectations; lower than expected government borrowing was the key positive surprise; Increase in MAT rate and custom duty on crude oil was unexpected. Impact of higher excise duty will be offset by reduction in personal taxes," according to KR Choksey report.

"Positive For : Auto, Banking, Infrastructure, Metals
Impact on : Hero Honda, Bajaj Auto, PSU Banks, Reliance Cap, IDFC, Sesa Goa, patel Eng
Negative For : IT, Telecom, Oil & Gas
Impact on : ITC, Bharti, OMCs, Tier 1 IT players, Cairn, Reliance"

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