Automobile
Excise duty across the board hiked by 200 bps to 24%
Excise duty on large cars hiked by 500bps to 27%
Import duty on fully built cars increased from 60% to 70%
Negative for Tata Motors and M&M
Economy
Expect India FY13 GDP at 7.6% plus minus 0.25%
FY 13 divestment target Rs 30000 cr - Positive for PSU companies
To keep FY13 subsidy under 2% of GDP. To bring subsidy to 1.7% of GDP in next 3 years - Positive for economy
Fiscal Deficit at 5.9% in FY12 - Negative for Economy
Service Tax hiked from 10% to 12% and Excise duty hiked from 8% to 12%: Negative for Corporates
Infrastructure:
8,800 km of road projects to be awarded in FY13, positive for Sadbhav Engg and IRB Infra
Taxfree bonds increased by 2x to Rs600bn
Allocation of Rs200bn for rural infrastructure development fund
Allocation of Rs240bn for rural roads plan FY13
Fertilizers:
Use of SSP (single super phospate) encouraged by government - Positive for Tata Chemicals and Coro-mandel Intl
GST:
GST to be operational by August 2012. GST network approved by state finance ministers
Banking and Financial Services:
Measures to boost equity market positive for
Changes in IPO norms to increase participation in small towns
Tax-free bond limits increased; positive for IDFC
IDR 2-way fungibility; positive for StanChart IDR
Reduce STT by 20% on delivery transactions - Mildly Positive for stock markets
A new equity saving scheme will be available with 50% deduction for those who invest Rs. 50000 and has annual income less than Rs. 10 lacs Proposed Rs. 15888 cr for bank recapitalization - Positive for PSU Banks
Aviation:
Permit ECBs for working capital needs for aviation - Positive for KFA and Jet Airways
Agriculture:
Rs 300 crore for intensified irrigation program : Positive for Jain Irrigation
Viability gap funding for irrigation; positive for IVRCL and Ramky Infrastructure
Power:
Full exemption on Custom Duty on coal - Positive for Adani power and Tata Power
FMCG Tobacco
Increase in excise duty on bidisand cigarettes would narrow the price gap for cigarette products - Good for ITC
OIL & Gas
Cess on crude oil hiked to Rs 4500/MT from Rs 2500/MT
Pilot project on transfer of cash subsidy on PDS Kerosene & LPG;
No roadmap for reducing the fuel subsidy
LNG exempted from custom duty (currently 5%)
Real Estate
ECB allowed for affordable housing and low cost housing
Telecom
Viability gap funding for telecom tower and fixed line assets - Good for Telecom
