BUDGET MANIA 2010

FISCAL DEFICIT
INFLATION
 AUTO

AUTO
Auto stocks will have direct impact on any
announcements,being made in the sector on excise duties.
If there is any hike in excise duty the stocks will have
negative impact whereas any positive announcements or no
hikes can have positive impact on the stocks. Any rise in
excise duty will be passed on to the consumers which will be
reflected in the higher prices they have to pay for it and
vice- versa.
• Stocks to Watch:
• TATAMOTOR, MARUTI, M&M, BAJAJ AUTO, HERO
• HONDA, ASHOK LEYLAND AND TVS MOTOR.
 AGRICULTURE

Indian economy being an agricultural economy our

Government's focus will be on promoting agricultural activities.
Rising inflation is also a worry thus increased allocation for this
sector will have a positive impact on the stocks in this sector and
vice-versa.
Stocks to Watch:
JAIN IRRIGATION, KRBL, RUCHI SOYA, KSOILS, CHAMBAL FERT.
& NAGARJUNA FERTILIZER
 CEMENTS

The cements stocks will also be in focus as any hikes or reductions

in excise duties will have direct impact on this sector. A hike in
excise duty will have negative impact on the stocks as the end
consumer has to pay more prices for the product whereas any
decrease in the excise duty will positively impact the stocks.
Stocks to Watch:
ACC, AMBUJA CEMENTS, GRASIM AND ULTRATECH CEMENT.
 CONSTRUCTION

• Better infrastructure facilities for India have been the

priority of Indian Government. Any increase in
infrastructure spending by the Government will help
the construction sector to usher inlong term.
• Stocks to Watch:
NAGARJUNA CONSTRUCTION, HINDUSTAN
CONSTRUCTION,UNITECH, PARSVNATH, GAMMON
INDIA.
 FMCG

The FMCG Stocks will be impacted by any hike/decline in excise

duty. A Hike in excise will lead to higher prices for the products
which ultimately will be passed on to the end consumer in terms
of increased price, thus any hike would have negative impact on
this sector and vice-versa.

Stocks to Watch:
ITC & HINDUNILEVER
 Metals

Any increase in export duty on iron ore will have negative

impact
on the stocks related to iron ore sector. Also increase in
excise
duty will have adverse impact on the metals stocks and
viceversa.
Stocks to Watch:
Increase in export duty on iron ore:
Stocks that will have negative impact are SESAGOA &
JSWSTEEL
Increase in excise duty:
TATASTEEL, SESAGOA, JSWSTEEL, SAIL etc.
 PHARMA

PHARMA
Pharma sector is a priority sector. Any rebates or
deductions
related to R&D and promotional activities will give a
boost to this
sector which will have positive impact on the stocks of
this sector
and vice-versa.
Stocks to Watch:
DR. REDDY, SUNPHARMA, GLENMARK and LUPIN.
 REAL ESTATE

Any revisions on raising the limits of interest rate

deductions
available on housing loan interest payments will
help the real
estate companies as the customer will be in a
position to have
higher loans which will ultimately lead to higher
demand for the
Real Estate Players.
 FINANCIALS

The financial sector will be impacted by any

announcements on
Loan Policies and increase or decrease in FDI Limit.
Stocks to Watch:
RELIANCE CAPITAL, KOTAK, INDIABULLS FINANCIAL,
LIC
HOUSING FINANCE.
 THANKS & REGARDS

RAKESH CHANDRAYAN
9766360052
SR.RELATIONSHIP MANAGER
INDIAINFOLINE LTD