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Budget Expectations 2013-14: Sector-wise

Automobile Measures Expected Reduce excise duty on cars other than small cars to 20 per cent. Duty on 10-13 seater vehicles should be at par with buses at 10 per cent. Provide concessions on identified parts of hybrid/electric vehicles. Cement Measures Expected Increase in excise duty. Likely Impact Positive Positive Positive Key stocks to focus Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Bajaj Auto, Ashok Leyland Tata Motors, Mahindra and Mahindra Mahindra & Mahindra (REVA Electric Cars)

Likely Impact Negative: High prices in cement sector may see the government increase excise duty. Positive

Key stocks to focus ACC, Grasim, Ultratech Cement, Andhra Cement, India Cements All Cement Companies

Waiver of basic Custom duty on imported coal. Engineering/Capital Goods Measures Expected Zero duty capital goods import continue. Free import of second-hand capital goods. Pharmaceutical Measures Expected Currently a weighted tax deduction of 200 percent for R&D expenditure in an in-house facility is available. Industry is requesting for it to go up further (to 250-300%) and exemption being made available for expense in external R&D as well.

Likely Impact Positive Positive

Key stocks to focus Siemens, BHEL & Larsen & Toubro. All Capital Goods Companies.

Likely Impact

Key stocks to focus

Positive

Dr Reddy, Ranbaxy, Cipla, Sun pharma, Lupin, Biocon and Wockhardt

Metals Measures Expected Import duty on iron ore be cut to zero. (which is currently 2.5%)

Likely Impact Positive: for rescuing the domestic industry which is facing scarcity of the raw material and regulatory hurdles. Positive

Key stocks to focus Tata steel, JIndal Steel, SAIL & Hindalco

Excise duty roll back to 10%

Tata steel, JIndal Steel, SAIL & Hindalco

Real Estate Measures Expected Make Provisions For Special Residential Zones

Likely Impact Positive: to incentivise the growth of housing stock at targeted locations

Key stocks to focus DLF, Ansal, Omaxe, Sobha, Prestige, Oberoi, Godrej Properties, HDIL, Unitech, Ansal, Parsvnath, DLF, Unitech DLF, Ansal, Omaxe, Sobha, Prestige, Oberoi, Godrej Properties, HDIL, Unitech, Ansal, Parsvnath, DLF, Unitech

Increase Infrastructure Allocations

Positive

Provide Real Estate With Industry Status

Positive: By granting it industry status, the Government would enable the sector to access debt lending at better interest rates and reduced collateral values. Positive: The lack of clarity on land titles shakes the confidence of investors, and is a serious hindrance to overall growth. Positive

All Realty Companies

Steps To Provide Better Clarity In Land Titles

DLF, Ansal, Omaxe, Sobha, Prestige, Oberoi, Godrej Properties, HDIL, Unitech, Ansal, Parsvnath, DLF, Unitech All Reality Companies

Enact the Real Estate Regulatory Bill Extension of exemption under section 80IA, Increase in tax rebate limit for interest and principal repayment for purchase of house for self-usage, Extension of 1% interest subvention on home loan and Re-introduction of tax holiday for affordable housingprojects.

Positive

DLF, Ansal, Omaxe, Sobha, Prestige, Oberoi, Godrej Properties, HDIL, Unitech, Ansal, Parsvnath, DLF, Unitech

Information Technology Measures Expected Simplification of transfer pricing norms Continuity of Special Economic Zone scheme to encourage sector investments Extension of Research and development benefit. Exempting hardware components from import duties More spending on nation's cyber security and infrastructure

Likely Impact Positive Positive Positive Positive Positive

Key stocks to focus TCS, Infosys, HCL Tech. TCS, Infosys, Wipro, HCL Tech. All IT Companies HCL Tech. All IT Companies

Telecommunications Measures Expected Simplification of provision relating to withholding taxes Availability of input credit on telecom infrastructure Exemption under Section 10(23G)

Likely Impact Positive Positive Positive

Key stocks to focus All Telecom companies Bharti Infratel, Reliance Communication and GTL Infra Bharti Infratel, Reliance Communication and GTL Infra