Union Budget 2013-14 will be declaring
on first week of March. We are expecting lot from this Budget this year, it may
be last Budget of ruling party and it may reduce impact of inflation on common
man pocket. We expect Budget will be
good for market and give support to move it above psychological level. It is likely to be Dream Budget.
We expect budget is likely to be
estimated around 4.8% of GDP and Fiscal consolidation may be reduced in
comparison to FY13.
Oil and gas sector may be benefited by
government. Custom duty may be restore on import of crude oil and price
mechanism will be change for crude oil export. It is positive for private oil
and gas companies such as Cairn India and neutral for Public sector units due
to high realization of crude prices.
For Auto sector it is likely to be Tax
neutral. The auto sector, which is already facing slow down mainly due to
overall economy and demand .Excise duty may be increased on auto sales. Last
year government had raised Excise duty on all segments such as two wheelers,
cars, trucks etc.
We expect there will be recommendation
to enhance R&D sector in Budget 2013. R&D will enhance the production
and extraction of natural resource, scientific researches and technological
advancement. The Government should also promote Indian software industries to
develop more intellectual property of India.
In FMCG sector many product such as
condensed milk, tea, starches, vegetable saps, sugar etc likely to be free from
excise duty it will be good for common man pocket but it will left negative
impact on earnings of high pricing companies such as HUL, GPCL and Colgate.
We think that Budget will give a
support to Indian market as well as suitable for common man. We expect Government
will announce and proactive policies considering forthcoming general election.
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