The Union Budget as always tends to benefit certain sectors by an impetus in the form of growth oriented policies or cut in excise and import duties. Here are a few stocks that could benefit from the Union Budget, which Finance minister Arun Jaitley presented on Thursday.
The excise duty on footwear upto Rs 1000 has been slashed to 6% from 10%. Footwear up to Rs 500 per pair will continue to remain exempted.
Companies like Bata and Relaxo could get a boost to their volumes in the near future.
The Housing Finance sector got a boost as the Finance Minister raised the tax exemption limit on the interest paid on housing loans to Rs 2 lakhs. Companies like LIC Housing, DHFL and Gruh Finance may see better business going forward.
Cement companies like ACC and Ultratech will get a boost, particularly after the thrust given by the Union Budget to infrastructure development. Development of roads, extra cities and bridges to see a surge in demand for cement.
Hotels stocks are likely to benefit from the government's decision to invest Rs 500 crore in developing a few tourist destinations apart from creation of fund for Piligrimage Rejuvenation and Spiritual Augmentation Drive. Since Indian Hotels is the largest Hotel chain, it is likely to benefit the most.
The Budget proposed the removal of import duty on certain computer components. This is likely to benefit HCL Infosystems, which manufactures laptops and compouters.
The thrust on infra, particularly power and cement is likely to benefit JP Associates since the company has a significant presence in these areas.
Like LIC Housing Finance mentioned earlier, HDFC is likely to benefit from the increase in interest exemption limit on housing loans to Rs 2 lakhs. Apart from this a focus on affordable housing by the Union Government is likely to boost the performance of HDFC.