BUDGET IMPACT: Win some, lose some

The absence of any nasty surprise is clearly the biggest takeaway for the corporate sector from Budget 2006-07. The overall impact has been rather muted but India Inc isn't complaining.

The reduction of the peak rate on customs duty to 12.5 per cent on non-agricultural products is not expected to have a major impact for companies.

Since service tax is generally passed on to the user, services will get 2 per cent dearer for companies. The other major impact will be the increase in Minimum Alternative Tax to 10 per cent on book profits.

The higher expenditure in the rural sector as well as on infrastructure will improve consumption, which is a positive for several companies.

At the sector level, the reduction in excise duties on small cars is a positive for Maruti and Tata Motors. The protection for the petrochemical industry stands reduced after the cut in customs duties.

Even the reduction in non-ferrous metal customs duties will bring them closer to global prices in the long run. In the FMCG sector, there has been some change in excise duties, which is likely to have a marginal impact.

The investments in power will be good for power and power equipment companies. Man-made textile companies will benefit due to lower import duties on key petrochemicals and a cut in excise.

The increase in the cess on crude oil will affect ONGC. Read on to find more details on the impact on the key sectors and stocks.

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