0
Sectors
affected by the
Union Budget5
The finance minister presents his
budget in 2 parts:
Broad
Policy
Tax
Proposals
Broad Policy
Policy initiatives indicate the
stance of the budget. If the
budget is allocating resources
for spending on i...
Tax Proposals
Similarly, when tax rates or
duties are changed, they
affect individuals or
companies accordingly. The
abili...
The Sectors
Here are some sectors that have been impacted, more often than not, by
past budgets:
Power
Real Estate
Infrast...
#1 Power
Power
• Power production requires fuel. Any changes in taxes on fuel could
make or break a project.
• Similarly, excise an...
#2 Real Estate
Real Estate
• Low-cost housing and urbanization influences the real estate sector.
The budget is watched very closely for ...
#3 Infrastructure
Infrastructure
• This is perhaps the most affected sector in the budget.
• The government spending on rural and urban infr...
#4 Automobile
Automobile
• Excise duty on manufacturing of cars in India changes in every other
budget.
• While the duty on vehicles wit...
#5 Oil and Gas
Oil and Gas
• Petroleum subsidies keep prices of diesel, kerosene or LPG low.
• Since fuel prices to retail customers and ...
Final note
• Subsidies form a significant chunk of the Government’s expenditure.
Any cut in subsidies is good news for the...
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Thank You
Open a DEMAT Account
Disclaimer:
Kotak Securities Limited.Reg Off.: 27 BKC, C 27, G Block, Bandra Kurla Complex,
Bandra (E) Mumbai 400 05. CIN:...
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5 Sectors affected by the Union Budget

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The budget is watched very closely by stock market enthusiasts as it sets future pricing of products and services which affects the related sectors. View our presentation to know five budget sensitive sectors.

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Transcript of "5 Sectors affected by the Union Budget"

  1. 1. Sectors affected by the Union Budget5
  2. 2. The finance minister presents his budget in 2 parts: Broad Policy Tax Proposals
  3. 3. Broad Policy Policy initiatives indicate the stance of the budget. If the budget is allocating resources for spending on infrastructure, a lot of related businesses are affected.
  4. 4. Tax Proposals Similarly, when tax rates or duties are changed, they affect individuals or companies accordingly. The ability of these companies to pass on changes in tax rates to customers determines their future profitability.
  5. 5. The Sectors Here are some sectors that have been impacted, more often than not, by past budgets: Power Real Estate Infrastructure Automobiles Oil and Gas
  6. 6. #1 Power
  7. 7. Power • Power production requires fuel. Any changes in taxes on fuel could make or break a project. • Similarly, excise and customs duties on power equipment also affect the power sector. • Free power supply to farmers in many states puts state electricity boards at a disadvantage.
  8. 8. #2 Real Estate
  9. 9. Real Estate • Low-cost housing and urbanization influences the real estate sector. The budget is watched very closely for incentives offered towards this. • Successive governments have always focused on low cost and affordable housing for the masses and hence, have normally announced schemes to help the sector.
  10. 10. #3 Infrastructure
  11. 11. Infrastructure • This is perhaps the most affected sector in the budget. • The government spending on rural and urban infrastructure leads to a significant business for companies that build it. • The finance minister announces allocation to rural and urban infrastructure and to build roads, bridges, metro train and transport, airports in the budget.
  12. 12. #4 Automobile
  13. 13. Automobile • Excise duty on manufacturing of cars in India changes in every other budget. • While the duty on vehicles with smaller engines is less, it is more on vehicles that have a powerful engine. The differentiation is also based on the length of the vehicle (passenger vehicles). For high-end vehicles, there is customs duty on parts imported and assembled in India. • The consumer decision to buy or sell vehicles is influenced by taxes announced in the budget.
  14. 14. #5 Oil and Gas
  15. 15. Oil and Gas • Petroleum subsidies keep prices of diesel, kerosene or LPG low. • Since fuel prices to retail customers and profitability of companies are determined by the amount of subsidies, investors listen to the finance minister’s budget speech for a stance on fuel pricing going ahead. • The companies which are most impacted are the state-owned oil marketing companies that sell diesel and LPG to consumers as well as the upstream companies which have to bear a part of the subsidies. • India spends about 0.6% of its GDP on fuel subsidies.
  16. 16. Final note • Subsidies form a significant chunk of the Government’s expenditure. Any cut in subsidies is good news for the relevant companies and hence, for the investors. • In a nutshell, the five sectors listed above affect shareholders and consumers alike. Budget is an important event that determines future pricing of products and services sold in these sectors. • To learn more about the union budget, click here.
  17. 17. Get eBooks Website Thank You Open a DEMAT Account
  18. 18. Disclaimer: Kotak Securities Limited.Reg Off.: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E) Mumbai 400 05. CIN: U99999MH1994PLC134051, Tel No.:+22 43360000, Fax No.: +22 67132430. website:www.kotak.com. Correspondence Address: Infinity IT Park, Bldg. No. 21, Opp Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. Tel no:66056825. SEBI Reg Nos: NSE INB/INF/INE230808130, BSE INB 010808153 / INF 011133230, OTC INB 200808136, MCXSX INE 260808130/INB260808135/INF 260808135, NSDL IN-DP-NSDL-23-97, CDSL IN- DP-CDSL-158-2001, AMFI ARN 0164. Compliance officer- Mr. Sandeep Chordia. (Telephone Number 022 6605 6825, Email idks.compliance@kotak.com). In case you require any clarification or have any concern, kindly write to us at below email ids: • For Trading Account related queries: service.securities@kotak.com • For Demat Account related queries:ks.demat@kotak.com. Alternatively, you may feel free to contact our customer service desk at our toll free numbers18002099191 or 1800222299. You may also call at30305757 by using your city STD code as a prefix. In case you wish to escalate your concern / query, please write to us at ks.escalation@kotak.com and if you feel you are still unheard, write to our customer service HOD atks.servicehead@kotak.com Investments in securities are subject to market risk; please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. The content/illustrations shared in the presentation is based on information available from the past budget(s)
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