Thursday, February 12, 2009

BOR: Interim budget: Banking & Financial Services & FMCG Expected measures...!!! Many More

Banking & Financial Services Expected measures:
  • Limit of deduction under section 24 for interest on housing loans (for self occupied property) may be raised from INR 0.15 mn.
  • Increase refinance facility for NHB
  • Increasing tax breaks provided to Housing finance/Infrastructure lending companies which currently is allowed up to 20% of profits derived from projects may be increased back to 40% to fuel credit growth.
All the above measures will move positive for stock like HDFC & LIC Housing Finance. One can darly bet on this.

FMCG Expected measure:

  • VAT on processed foods eg. Biscuits be reduced to 4% from 12.5%
  • Central excise to be brought down further and rationalisation of existing multiple taxes
All the above measures will move positive for stock like ITC, Britannia & HUL.
Logistics Expected measure:
  • The government may raise the limit for Viability Gap Funding (VGF) to 30% from 20% for urban transport systems like metro, monorail and road rapid transport system.
  • Extension of tax benefit to rail haulage business as is available to CFS/ICD business.
  • Freeing up of excess land and warehouses under Indian railways to private sector players, thus giving way for Public-Private Partnership.
All the above measures will move positive for stock like Port Projects, GDL & Concor.

Media Expected measure:
  • FDI relaxation in media companies: The government has been contemplating relaxing FDI norms for cable operators, print media and news broadcasters.
All the above measures will move positive for stock like WWIL, Dish TV, TV-18, TV Today, Zee News, Sun TV, IBN-18, HT Media, Jagran Prakashan, Deccan Chronicles.

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