Agriculture
Proposal
The recent budget provides for 13% growth in agricultural credit in FY10, an extension to the interest subvention scheme, and sizeable increase in allocations for the Accelerated Irrigation Benefit Programme. Budget allocations have also been substantially increased towards the National Rural Employment Guarantee Act and the six schemes under Bharat Nirman.
Impact
Higher liquidity in the hands of Indian farmers will benefit companies providing direct or indirect inputs to the agriculture industry such as seeds, fertiliser, agrochemicals or pumps and pipes for irrigation, warehousing infrastructure and transportation.
Top Picks Advanta, Rallis, Tata Chemicals, Chambal Fertilisers and Jain Irrigation, Aries Agro and Sabero Organics.
FMCG
Proposal
The government has increased its allocated expenditures on many rural deveplopment schemes leading to more money in the hands of rural consumer. Despite the central excise duty rate having increased to 8%, the government has maintained the excise duty rate on food items, items of mass consumption like pressure cookers, cheaper electric bulbs, low-priced footwear, and water filters/purifiers, CFL, etc at 4%.
Impact
The FMCG sector, which is much dependant on the consumption demand, does have a reason to smile from this budget. Increase in income means more money in the hands of the have nots. This will mean more new customers for the companies in the sector.
Top Picks Hindustan Unilever, ITC, Nestle, Dabur, Eveready Industries, Emami, Jyothy Laboratories, K S Oils, Relaxo Footwear and Cera Sanitary.
Proposal
The recent budget provides for 13% growth in agricultural credit in FY10, an extension to the interest subvention scheme, and sizeable increase in allocations for the Accelerated Irrigation Benefit Programme. Budget allocations have also been substantially increased towards the National Rural Employment Guarantee Act and the six schemes under Bharat Nirman.
Impact
Higher liquidity in the hands of Indian farmers will benefit companies providing direct or indirect inputs to the agriculture industry such as seeds, fertiliser, agrochemicals or pumps and pipes for irrigation, warehousing infrastructure and transportation.
Top Picks Advanta, Rallis, Tata Chemicals, Chambal Fertilisers and Jain Irrigation, Aries Agro and Sabero Organics.
FMCG
Proposal
The government has increased its allocated expenditures on many rural deveplopment schemes leading to more money in the hands of rural consumer. Despite the central excise duty rate having increased to 8%, the government has maintained the excise duty rate on food items, items of mass consumption like pressure cookers, cheaper electric bulbs, low-priced footwear, and water filters/purifiers, CFL, etc at 4%.
Impact
The FMCG sector, which is much dependant on the consumption demand, does have a reason to smile from this budget. Increase in income means more money in the hands of the have nots. This will mean more new customers for the companies in the sector.
Top Picks Hindustan Unilever, ITC, Nestle, Dabur, Eveready Industries, Emami, Jyothy Laboratories, K S Oils, Relaxo Footwear and Cera Sanitary.
No comments:
Post a Comment