Thread by @RepeatEarn

Budget Takeaways for Various Sectors(Equity Impact Sector wise): ( Long Thread)
#Budget2019 #investearnrepeat
AIRLINE : POSITIVE
• aircraft financing and leasing activities from Indian shores
• Postive for Interglobe Aviation and Spicejet

AUTOMOBILE : NEGATIVE
Customs duty has been increased from 7.5%/10% to 10%/15% on automobile parts
• Negative for Auto OEM companies like Maruti, Hero , Bajaj Auto, TVS Motors, Eicher , TaMo, Ashok Leyland.

• Interest upto Rs. 1.5 Lacs shall be allowed as deduction for the purchase of EV w.e.f 1/4/20. (Positive for EV)
• Special Additional Excise duty by Re 1 per litre and Road and Infrastructure Cess by Re 1 per litre each on petrol and diesel.

Cables - Positive
• Customs duty on Optical Fibre and Cables has been increased from 10% to 15%
• Positive for Sterlite Technologies and other domestic manufacturers

Banking - Positive
• PSB's to be recapitalized by Rs.70Kcr Will enable better credit growth and comply with RBI guidelines on capital requirements ( +ve for all PSB's)
• Lower govt borrowing will reduce cost of funds
• Enhanced interest deduction upto Rs. 3.5 lac on housing

Insurance - Neutral
Net Owned Fund requirement has been reduced from Rs. 5000 Cr to Rs. 1000 Cr

Infrastructure ( Railways)
Railways’ capex for the year FY20 has been pegged at Rs. 2,27,431 Cr v/s Rs. 191,095 Cr in FY19, an increase of 19%. Railways require capex of ~Rs. 50 Lac Cr over 2018-30
• Move towards PPP model
• Positive for KEC International, RVNL, IRCON, RITES.

Infra (Road) -

• Capex on Roads and Highways has been hiked from Rs. 1,36,126 Cr in FY19 to Rs. 1,42,829 Cr for current year, an increase of 5% • Neutral for road companies.

Defense - Positive

•Capital outlay on Defense has been increased from Rs. 93,982 Cr to Rs. 1,03,394 Cr for current year, an increase of 10%
• Positive for Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics

Metals - Positive
Import duty has been increased on Stainless steel in primary forms; semi-finished products of Stainless Steel from 5% to 7.5%.
• Positive for Jindal Stainless

Oil and Gas NEGATIVE
• The government has decided to increase Special Additional Excise duty by Re 1 per litre and Road and Infrastructure Cess by Re 1 per litre each on petrol and diesel.
• Negative for Oil Marketing Companies

IT - NEGATIVE
• additional tax at 20% in case of buy back of shares
. • In last 2 year various IT company had come up with large Buy Back plan which has supported share prices
• Negative for TCS, Infosys, Wipro.

Textile Positive
• Reduction in Cutom Duty of wool fibre and Wool Tops from 5% to 2.5%
• Positive for Monte Carlo, Raymond

Real Estate Positive
• Enhanced interest deduction upto Rs. 3.5 lac from Rs. 2 lac earlier for purchase of an affordable house under Rs. 45 Lacs
Positive for Real estate companies in affordable housing segment

NBFC - POSITIVE
• Govt. shall provide a one-time six month’ partial credit guarantee to PSU Banks for first loss of upto 10% on pool of assets of sound NBFCs for total issuance of up to Rs 1 lac crore
• Positive for Piramal, Edelweiss Fin, Indiabulls Hsg, L&T Finance.

NBFC( HFC)
Govt has proposed to move regulation of HFCs from National Housing Board to RBI. This is positive for housing finance companies as it will bring more stability.
Enhanced interest deduction upto Rs. 3.5 lac from Rs. 2 lac earlier for purchase of an affordable house.