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Markets eye goodies from Budget

Six leading brokerages share their Budget wish list with Business Standard

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SI Team
Last Updated : Jan 20 2013 | 3:02 AM IST

Amar Ambani
Head of research, India Infoline (IIFL)

Automobile:
1) Additional tax on diesel cars

2) R&D benefits to attract incremental investments

3) Further allocation to rural employment schemes to support rural uto demand

Banking:
1) Government recapitalisation in PSU banks

2) Fiscal consolidation, lower market borrowings

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3) Hike in insurance sector FDI limit

4) Approval for issuing tax-free infra bonds

Real estate:
1) Separate tax exemption window on principal repayment

2) More subsidies for residential housing

Infrastructure/Capital Goods:
1) Increase outlay towards infra development schemes, such as Bharat Nirman, JNNURM

2) Hike in import duty on power equipment

3) Higher tax benefit on tax-saving infra bonds

4) Implementation of National Infra Debt Fund

5) Faster implementation of projects

Consumer:
1) Excise duty hike on cigarettes

2) Excise duty reduction on vegetable oil

3) Development of rural sector

Dipen Shah
Head - Fundamental Research, Kotak Securities

Automobile:
1) 200 bps hike in excise duty

2) Additional excise hike on diesel cars

Real Estate:
1) Higher allocations towards government schemes like Rajiv Awaas Yojana

2) More sops for budget housing

Infrastructure/Capital Goods:
1) Higher budgetary allocations for schemes like Bharat Nirman and NHDP

2) Addressing land acquisition and environmental clearances issues

3) Focus on public spending towards infra and power projects

4) Import duty on power equipments

Consumer:
1) Timeline for GST

2) Allocations for Food Security Bill

3) More social sector spending

4) Changes in tax slabs to impact urban consumption

5) Excise duties on cigarettes to rise 12-15 per cent

Shirish Pardeshi
Co-head - Research, Anand Rathi Financial Services

Automobile:
1) Status quo on excise duty rates on small cars and two-wheelers

2) Additional excise on diesel cars

3) Increased allocations under MGNREGA and other rural development schemes

4) More sops for green vehicles

Banking:
1) Improve fiscal deficit position

2) Re-capitalisation of PSBs

3) Approval for issuing tax-free infrastructure funds

4) Reduction of lock-in period for FDs

Real Estate:
1) Hike in tax deductions on interest paid for housing loan

2) Hike in tax deduction on principal repayment for housing loan

Infrastructure/Capital Goods:
1) More infra spends through schemes like R-APDRP, NREGA, RGGVY and Bharat Nirman

2) Setting up a coal regulator

3) Import duty on power plant equipments from China

4) Improved availability of finance for infra projects

5) Increased coordination between central and state level agencies

6) Hike in investment limit on tax-saving bonds

Consumer:
1) Excise hike on cigarettes

2) Marginal hike in excise for consumer categories

3) More outlay on NREGA

Dhananjay Sinha
Co-Head - Institutional Research, Emkay Global Financial Services

Automobile:
1) Additional tax on diesel vehicles

2) Hike in excise duty likely

Banking:
1) Imposition of duties on gold imports

2) Higher risk weight on lending against gold

3) Extension of tax benefits on deposits

4) Recapitalisation of public sector banks

Real estate:
1) Industry status for the sector

2) Hike in interest rate subventions on housing loan

3) Increase in tax exemption on home loans

Infrastructure/Capital Goods:
1) Addressing supply side issues

2) Attempts towards decentralising cold storages

3) Status quo on MAT rate

4) Import duty on power equipment

5) Credit guarantee fund or interest rate subvention for SEBs

6) Resolving financial problems of power distributors

Lalit Thakkar
Managing Director - Institution, Angel Broking

Automobile:
1) Status quo on excise duty rates

2) Additional excise duty on diesel passenger vehicles, except small cars

3) Tax incentives for green/hybrid cars

Banking:
1) Fiscal prudence from the government

2) Lock-in period reduction on tax-saving FDs to three years

3) Provisions for additional equity capital support to PSU banks

Real Estate:
1) More tax benefits for home buyers

2) Tax sops for green projects

3) More tax benefits for affordable housing

Infrastructure/Capital Goods:
1) Higher allocation to flagship programs including Bharat Nirman and JNNURM

2) Policies to expedite land acquisition and environment clearance

3) Customs duty on power equipment import

Rahul Arora
Chief Executive Officer, Nirmal Bang Institutional Equities

Automobile:
1) Additional duty hike on diesel cars

2) Incentives for electric vehicles

3) Status- quo on excise duty

Banking:
1) Approval for issuing tax-free infrastructure bonds

2) Full tax exemption on provisioning for NPAs

3) Easing of rules for restructuring corporate debt and farm loans

Real Estate:
1) Doubling of income tax exemption on principal repayment

2) Hike in tax exemption limit for home loans

3) Removal of 2.5% service tax and 1% VAT

Infrastructure/Capital Goods:
1) Increase in allocations towards programs -like Bharat Nirman, JNNURM and AIBP

2) Reforms in PPP projects to increase private participation

3) Easing of ECB norms for infra projects

4) Import duty on power equipments

5) International competitive bidding in UMPP

6) Service tax exemption for T&D industry

Consumer:
1) Implementation of GST

2) Excise hike on cigarettes

3) Roll back of 10 per cent excise duty on branded garments

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First Published: Feb 24 2012 | 12:12 AM IST

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