Morgan Stanley Budget could be positive for the oil & gas industry and neutral for utilities, media, property, and health care. Do not see any direct policy measures that would hurt consumption, but lower government expenditure would constrain top line for some of the consumer sectors near term.
Goldman Sachs The Budget could be positive for banks, capital goods, and logistics, but negative for consumer goods. It will focus on expenditure cuts - which have a better chance of succeeding - rather than optimistic revenue increases.
JM Financial Single-window clearance could be announced for high-value projects, introduction of CTT (Commodity Transaction Tax), more clarity on Land Acquisition Bill and MMRD Bill, lower dividend distribution tax from foreign subsidiaries (current 15 percent)
CARE Research There would be some affirmative steps in the areas of agriculture, warehousing, continuation of interest subvention and write-offs, SMEs etc. But, we may be assured that populism will not be at the expense of prudence.
India Infoline Unlikely the FM would increase I-T exemption slab beyond Rs 2 lakh. Enhanced tax collection is critical given the reigning deficit, and an exemption of Rs 2.5-3 lakh will help many people escape the tax net. The FM simply cannot afford this potential loss.
Aditya Birla Money Reintroduction of customs duty on crude oil to boost revenues, additional excise duty on diesel cars, MAT tax to be lowered/ abolished for infrastructure players.
Emkay Share & Stock Brokers Plan and non-Plan expenditure growth seen lower at 7% and 11% respectively on lower allocation for subsidy at Rs 2.2 lakh crore (-21 percent over FY13). Food subsidy bill for FY14E expected at Rs 1 lakh crore due to proposed food security bill.
Religare A 4.8 percent fisc for FY14 is structurally positive, save the higher fuel/fertilizer inflation, potentially back to FY12 levels, delaying the rate-cut cycle. On the bright side could be steps to channelize longterm capital into investments.
Nirmal Bang Flagship welfare programmes like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and other welfare schemes could take a backseat due to limited budgetary allocation amid strategic monitoring of subsidy disbursal through Aadhar-based transfers
Axis Capital Import duty hike on power equipment by 5-10 percent from current 20-27 percent, higher depreciation rate on capex from 15 percent to 25 percent, restoration of subsidy for wind power, decrease in Defence outlay by 5 percent.
Standard Chartered The economic benefits of a higher tax on the super-rich are uncertain. However, given the upcoming election, the government might frame such a measure as an attempt to redistribute wealth.