Budget 2012: Winners and losers of Budget 2012

Finance Minister Pranab Mukherjee played it safe in unveiling the federal budget on Friday, pledging reforms but setting only modest targets for trimming a ballooning fiscal deficit, disappointing investors.

The following sectors/companies will be hurt by the budget:

* Oil explorers such as Oil & Natural Gas, Oil Indiaand Cairn Indiawill be hit after the budget proposed to raise cess on crude oil to Rs 4,500 per tonne from Rs 2,500 per tonne.

* Gold loans providers such as Muthoot Financeand Manappuram Finance Ltdmay see slower volume growth after basic customs duty on gold was doubled.

* Gold jewellery makers such as Gitanjali Gemsand Titan Industrieswill also be hit due to high costs and as expensive jewellery will deter buyers hurting sales volume.

* Indian power equipment makers, who were demanding imposition of customs duty on imported power gear above 1,000 MW, are left high and dry by the federal finance minister as there was no mention of this demand in the budget.

* Government-owned financial institutions will get capital infusion of USD 3 billion which is largely seen as insufficient to capitalise state-run banks such as State Bank of India, Punjab National Bank, Bank of Indiaand Bank of Baroda. Indian banks will also be under pressure to achieve the target of Rs 5,75,000 crore for farm credit, where bad loans are relatively higher.

* The budget was quiet on any reforms for Indian engineering exporters, which accounts for about one-fourth of the country's total merchandise exports. Companies such as Larsen & Toubroand Punj Lloyd, were expecting measures to boost local manufacturing. Instead, the budget proposed to raise excise duty to 12% from 10%.

* The increase in excise duty, after the recent hike in the rail freight, would raise cement prices which is likely to hurt construction companies such as IVRCL Infra, Hindustan Constructionand can have adverse impact on the infrastructure.

* The increase in the service tax rate to 12% from 10% will raise the cost of production for developers such as DLF, Oberoi Realty and Housing Development Infrastructure Ltd, who are already reeling under high input costs. This increased burden may be passed on to end users.

The following companies/sector will gain from the budget:

* Power utilities such as Tata Power, NTPC Ltd, Adani Powerand Reliance Powerare likely to benefit after the budget proposed a two-year exemption on import duty for companies importing thermal coal. A proposal to allow external commercial borrowing to part finance rupee debt of power projects will also help.

* Low cost housing developers and financiers such as Sobha Developers, Housing Development Finance Corpand LIC Housing Financewill benefit after the budget proposed allowing external commercial borrowings for low-cost housing projects below Rs 25 lakh.

* Carriers such as Kingfisher Airlines, Jet Airwaysand Spicejetwill benefit after the budget proposed to allow external commercial borrowings of up to USD 1 billion to help meet immediate funding needs. The finance minister also said that a proposal to allow foreign direct investment by airlines is under "active consideration."

* Infrastructure finance companies such as Infrastructure Development Finance Co, L&T Financeand Rural Electrification Corpwill benefit after the budget proposed to double the issue of tax-free bonds for financing infrastructure projects to Rs 60,000 crore.

* The budget was quiet on tax on diesel cars, as was widely feared by the market, nor was there a reduction in fuel subsidy. India also announced an increase in import taxes for assembled SUVs and utility vehicles costing more than USD 40,000. The move is seen as positive for car makers such as Maruti Suzuki, Tata Motorsand Mahindra & Mahindra.

* Retailers may benefit after the finance minister assured to arrive at a consensus to open up the supermarket sector to foreign giants such as Wal-Mart and Carrefour , which would help in tie-ups and boost capital inflows.

* Road developers such as IRB Infrastructure, Reliance Infrastructureand Hindustan Constructionwill see higher orders after the budget proposed to develop 8,800 kilometres of national highways under the National Highways Development Project in 2012-13.

* Cigarette maker ITC Ltdis likely to benefit after the government raised excise duty on non-cigarette tobacco products making the market competitive. Excise hike on cigarettes was lower than expected.

* Fertiliser makers such as Rashtriya Chemicals & Fertilizers, Chambal Fertilisers, Coromandel Internationaland Tata Chemicalscould see a fall in expenditure after the budget fully exempted basic customs duty on import of equipment for three years.