Finance Minister Arun Jaitley‘s speech for Budget 2017 doesn‘t evince enough interest to buy into NBFC stocks, according to Ajay Srivastava of Dimensions Consulting. He said the Budget lacks enough spunk to buy in NBFC stocks.
Finance Minister Arun Jaitley’s speech for Budget 2017 doesn’t evince enough interest to buy into NBFC stocks, according to Ajay Srivastava of Dimensions Consulting. He said the Budget lacks enough spunk to buy in NBFC stocks.
Oil and PSU stocks are likely to be the first beneficiaries of budgetary allocations for sectors, Srivastava said. These sectors will get a major pie of infrastructure outlay for FY18. Investors will have to be cautious on financial services as valuations aren’t justified, he said.
The total allocation for infrastructure development in 2017-18 stands at Rs 3.96 lakh crore. While investment for National highway Authority of India (NHAI) is pegged at Rs 64,000 crore Pradhan Mantri Gram Sadak Yojana (PMGSY) allocation would be Rs 27,000 crore. For railways, an amount of Rs 1.31 lakh crore for FY18 has been proposed.
Gautam Trivedi, MD & CEO, Religare Capital Markets said cement stocks will benefit from the capex outlined for affordable housing and railway. He said though farm sector thrust was elating, tax surcharge on those earning Rs 50 lakh to Rs 1 crore was disappointing.
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