How will auto, bank, infra, realty and others react to Budget 2013

How will auto, bank, infra, realty and others react to Budget 2013
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney SME Special
moneycontrol.com
How will auto, bank, infra, realty and others react to Budget 2013
  • 
	Brokerage house Goldman Sachs has drawn its list of sectorwise expectations from the Budget, their probability and impact.
	
	Read on:

    Brokerage house Goldman Sachs has drawn its list of sectorwise expectations from the Budget, their probability and impact. Read on:

  • 
	1. Automobiles
	
	No significant action expected, given the significant deterioration in demand conditions for the sector, coupled with the government's fiscal deficit constraints and recent increases in fuel prices.
	
	Probability: Medium
	
	Impact: Neutral

    1. Automobiles No significant action expected, given the significant deterioration in demand conditions for the sector, coupled with the government's fiscal deficit constraints and recent increases in fuel prices. Probability: Medium Impact: Neutral

  • 
	2. Banks/Financial institutions
	
	Details of capital infusion for banks. Positive for banks which are due to receive capital. Possible boost to savings instruments such as insurance/mutual funds, to diversify funds away from gold.
	
	Probability: High
	
	Impact: Positive 

    2. Banks/Financial institutions Details of capital infusion for banks. Positive for banks which are due to receive capital. Possible boost to savings instruments such as insurance/mutual funds, to diversify funds away from gold. Probability: High Impact: Positive 

  • 
	3. Capital Goods
	
	One of the measures to support power equipment industry likely: (1) exemption of import duty on CRGO (key raw material used in transformers), (2) anti-dumping duty on imported equipment or (3) exemption of power equipment from excise duty, assuming them as deemed exports.
	
	Probability: High
	
	Impact: Positive

    3. Capital Goods One of the measures to support power equipment industry likely: (1) exemption of import duty on CRGO (key raw material used in transformers), (2) anti-dumping duty on imported equipment or (3) exemption of power equipment from excise duty, assuming them as deemed exports. Probability: High Impact: Positive

  • 
	4. FMCG
	
	10%-12% increase in excise duty on cigarettes. While a hike of 8%-10% could be recovered by companies, a greater increase may negatively impact volumes.
	
	Probability: High
	
	Impact: Negative 

    4. FMCG 10%-12% increase in excise duty on cigarettes. While a hike of 8%-10% could be recovered by companies, a greater increase may negatively impact volumes. Probability: High Impact: Negative 

  • 
	5. Infrastructure
	
	Exemption of infrastructure companies from the payment of Minimum Alternative Tax (MAT) which the industry has been lobbying for.
	
	Probability: Medium
	
	Impact: Positive 

    5. Infrastructure Exemption of infrastructure companies from the payment of Minimum Alternative Tax (MAT) which the industry has been lobbying for. Probability: Medium Impact: Positive 

  • 
	6. Information Technology
	
	Clarification on the Special Economics Zone (SEZ) regime regarding tax exemption of units set up in new SEZs under the Direct Tax Code (DTC).
	
	Probability: Low
	
	Impact: Positive

    6. Information Technology Clarification on the Special Economics Zone (SEZ) regime regarding tax exemption of units set up in new SEZs under the Direct Tax Code (DTC). Probability: Low Impact: Positive

  • 
	7. Logistics
	
	Firmer road map to implementation of Goods and Services Tax (GST) over the next 12 months.
	
	Probability: High
	
	Impact: Positive

    7. Logistics Firmer road map to implementation of Goods and Services Tax (GST) over the next 12 months. Probability: High Impact: Positive

  • 
	8. Oil & gas
	
	Increased government provision for oil subsidy, since Rs 485 bn from FY13 is slipping into FY14. 
	
	Probability: Medium
	
	Impact: Positive 

    8. Oil & gas Increased government provision for oil subsidy, since Rs 485 bn from FY13 is slipping into FY14.  Probability: Medium Impact: Positive 

  • 
	9. Real Estate
	
	Incentives for affordable housing such as an increase in the limit for income tax deduction on interest rate on (1) home loans (current limit: Rs 1.5 lakh) and/or (2) home loan principal payments (current limit: Rs 1 lakh ).
	
	Probability: Medium
	
	Impact: Positive 

    9. Real Estate Incentives for affordable housing such as an increase in the limit for income tax deduction on interest rate on (1) home loans (current limit: Rs 1.5 lakh) and/or (2) home loan principal payments (current limit: Rs 1 lakh ). Probability: Medium Impact: Positive 

  • 
	10. Telecommunication
	
	The govt may look to generate approx. Rs.1000-1200 crore (similar amount as budgeted in FY13) from the excess 2G spectrum/2G spectrum and 900 MHz refarming.
	
	Probability: Medium
	
	Impact: Neutral 

    10. Telecommunication The govt may look to generate approx. Rs.1000-1200 crore (similar amount as budgeted in FY13) from the excess 2G spectrum/2G spectrum and 900 MHz refarming. Probability: Medium Impact: Neutral 

  • 
	11. Utilities
	
	Provisions to incentivize state electricity distribution companies to reduce the transmission and distribution (T&D) losses. Increased sops to renewable energy industry through viability gap funding and risk guarantees.
	
	Probability: Medium
	
	Impact: Positive 

    11. Utilities Provisions to incentivize state electricity distribution companies to reduce the transmission and distribution (T&D) losses. Increased sops to renewable energy industry through viability gap funding and risk guarantees. Probability: Medium Impact: Positive 

  • 
	Brokerage house Goldman Sachs has drawn its list of sectorwise expectations from the Budget, their probability and impact.
	
	Read on:
  • 
	1. Automobiles
	
	No significant action expected, given the significant deterioration in demand conditions for the sector, coupled with the government's fiscal deficit constraints and recent increases in fuel prices.
	
	Probability: Medium
	
	Impact: Neutral
  • 
	2. Banks/Financial institutions
	
	Details of capital infusion for banks. Positive for banks which are due to receive capital. Possible boost to savings instruments such as insurance/mutual funds, to diversify funds away from gold.
	
	Probability: High
	
	Impact: Positive 
  • 
	3. Capital Goods
	
	One of the measures to support power equipment industry likely: (1) exemption of import duty on CRGO (key raw material used in transformers), (2) anti-dumping duty on imported equipment or (3) exemption of power equipment from excise duty, assuming them as deemed exports.
	
	Probability: High
	
	Impact: Positive
  • 
	4. FMCG
	
	10%-12% increase in excise duty on cigarettes. While a hike of 8%-10% could be recovered by companies, a greater increase may negatively impact volumes.
	
	Probability: High
	
	Impact: Negative 
  • 
	5. Infrastructure
	
	Exemption of infrastructure companies from the payment of Minimum Alternative Tax (MAT) which the industry has been lobbying for.
	
	Probability: Medium
	
	Impact: Positive 
  • 
	6. Information Technology
	
	Clarification on the Special Economics Zone (SEZ) regime regarding tax exemption of units set up in new SEZs under the Direct Tax Code (DTC).
	
	Probability: Low
	
	Impact: Positive
  • 
	7. Logistics
	
	Firmer road map to implementation of Goods and Services Tax (GST) over the next 12 months.
	
	Probability: High
	
	Impact: Positive
  • 
	8. Oil & gas
	
	Increased government provision for oil subsidy, since Rs 485 bn from FY13 is slipping into FY14. 
	
	Probability: Medium
	
	Impact: Positive 
  • 
	9. Real Estate
	
	Incentives for affordable housing such as an increase in the limit for income tax deduction on interest rate on (1) home loans (current limit: Rs 1.5 lakh) and/or (2) home loan principal payments (current limit: Rs 1 lakh ).
	
	Probability: Medium
	
	Impact: Positive 
  • 
	10. Telecommunication
	
	The govt may look to generate approx. Rs.1000-1200 crore (similar amount as budgeted in FY13) from the excess 2G spectrum/2G spectrum and 900 MHz refarming.
	
	Probability: Medium
	
	Impact: Neutral 
  • 
	11. Utilities
	
	Provisions to incentivize state electricity distribution companies to reduce the transmission and distribution (T&D) losses. Increased sops to renewable energy industry through viability gap funding and risk guarantees.
	
	Probability: Medium
	
	Impact: Positive 

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login