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- We expect fiscal deficit figures to be revised upwards from the interim budget targets.
- For financial services, we expect a roadmap to recapitalize public-sector banks and incentives to increase financial savings.
- For technology, we expect reduction in MAT and lowering of dividend tax from foreign subsidiaries.
- For consumer & retail, we expect increase in excise-duty for cigarettes and increased government spending in rural areas.
- For auto and auto parts, the most important budget expectation has been met - the reduced excise duty extended till Dec-end. We expect thrust on infrastructure development.
- For healthcare, MAT on SEZ / EOU units might be reversed and MAT may not be applicable to profit from SEZ units.
- For industrials, single-window clearance would help large infrastructure projects. There could be increased outlay for urban infrastructure.
- For cement & building materials, greater infrastructure investments could revive cement demand; we expect single-window clearance for large infra projects and real-estate projects.
- For construction, there could be increase in government spending on infrastructure and existing schemes. Also, we expect higher limit for tax-free bonds by government agencies for long-term infrastructure financing.
- For metals, higher infrastructure investments and capex trajectory, together with incentivising of end-product consumption, could revive steel demand.
- For textiles, we expect capital-investment incentives under the Technology Up-gradation Fund.
By Anand Rathi Institutional Research