Sectors and Stocks to be impacted from Budget 2024-25
(These are my notes which I am sharing for quick reference for you all, please pardon any spelling mistakes (if any).
Macros from Budget 2024
F.Y.25 total receipts estimated at ₹32.07 lakh cr , total expenditure estimated at ₹48.21 lakh cr
● F.Y.25 net tax receipts estimated ₹25.83 lakh cr and gross market borrowings estimated at ₹14.01 lakh crore whereas net market borrowings estimated at ₹11.63 lakh crore
● F.Y.25 Fiscal deficit estimated at 4.9% whereas fiscal deficit for F.Y.26 is same as projected before 4.5%
New slab rate under new tax regime
1 lakh- 3 lakh Nil
3 lakh-7 lakh 5%
7 lakh-10 lakh 10%
10 lakh-12 lakh 15%
12 lakh- 15 lakh 20%
Above 15 lakh 30%
- Short term gains tax on specified financial assets raised to 20% from 15%, while that on all other financial assets and non-financial assets shall continue to attract the applicable tax rate.
- Long term gains tax on all financial and non-financial assets raised to 12.5%. It is proposed to increase the limit of exemption of capital gains on certain listed financial assets from ₹1 lakh to ₹1.25 lakh per year.
- Reduction in custom duties on Gold and Silver to 6% and on Platinum too 6.4% to enhance domestic manufacturing.
Positively Impacted Sectors
- Infrastructure Development: - Allocation of 100,000 crore INR for highway and railway projects. 50,000 crore INR for urban development and smart cities initiative.
Stocks to Benefit: Larsen & Toubro, IRB Infrastructure, GMR Infrastructure, NBCC. - Renewable Energy:
- 20,000 crore INR incentive package for solar and wind energy projects. 10,000 crore INR for EV infrastructure.
Stocks to Benefit: Adani Green Energy, Tata Power, Suzlon Energy, NTPC Limited, Inox Wind, Tata Power.
- Healthcare:
- 50,000 crore INR for healthcare infrastructure and medical research. - 15,000 crore INR for universal health coverage schemes.
Stocks to Benefit: Apollo Hospitals, Dr. Reddy’s Laboratories, Sun Pharma, Lupin Limited, Cipla,Fortis Healthcare.
- Agriculture:
- Additional 10,000 crore INR for Direct Benefit Transfer (DBT) scheme for farmers.
- 8,000 crore INR for irrigation projects.
Stocks to Benefit: Mahindra & Mahindra, Escorts, UPL Limited, PI Industries, Rallis India, Dhanuka Agritech, Coromandel International.
- Technology and Digital India: - 5,000 crore INR for Digital India initiatives to boost digital infrastructure and rural internet connectivity. 3,000 crore INR for AI and robotics research.
Stocks to Benefit: Infosys, TCS, HCL Technologies - Education:
- 20,000 crore INR for higher education funding, including research grants and scholarships. 10,000 crore INR for skill development programs.
Stocks to Benefit: NIIT, Aptech, Zee Learn, Shanti Educational, Veranda Learning Solution, Career Point, Global Education, Addictive Learn Tech, CL Educate.
- Taxation and Fiscal Policies: - Adjustments in income tax slab rates to provide relief to middle-class taxpayers. - Reduction of corporate tax for SMEs from 25% to 22%. Increase in import duty on luxury goods from 10% to 15%. Reduction in import duties on certain electronic components to boost domestic manufacturing.
Negatively Impacted Sectors.
1.Automobile: - Excise duty on Fuel increased by 2 INR per litre.
2. Luxury Goods: - Import duty on imported luxury items was reduced from 10% to 15%.
3. Tobacco and Alcohol: - Excise duty on Tobacco products increased to 5%
4. Oil and Gas: - Fossil fuel subsidies were cut by 8,000 crore INR.
- Impact: Operational costs of oil and gas companies like ONGC and Reliance Industries will increase, which will impact profitability. ex-Coal India, ONGC, Reliance Industries (Petrochemical division), GAIL India, Hindustan Petroleum Corporation Limited (HPCL)
This data is not exhaustive and there can be more stocks, which I might add later.
Not any recommendation to buy/sell any of these stocks, only for educational purposes.