Post-Budget Info 2011 By Paras K.Ghelani(PG) by parasghelani

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									Dear Friends, Investors & Group Members,

Long awaited Central Budget of World's biggest democracy India was announced by Shri Pranav
Mukherjee,finance Minister of India on Monday i.e.28-02-2011. FM has given his most priority on
Infrastructure,Agriculture & Rural Develepment Sector in this central budget…

Many good announcements was made by FM…. Most positive for Indian stock market right now is
to allow FIIs to invest in equity mutual fund schemes,corporate infrastructure bonds,surcharge
reduction,no hike in excise duties….Central Budget was welcomed by Indian stock market & given
positive effect on 28-02-11 with roses by 122 points & roses 630 points on 01-03-2011…

We had tried to give as much as detailed & point to point information about announcement done
& its possible effect on stock market,sector & scripts…It is our own research & views….

Main Highlights,Major Points Of Central Budget 2011-12 by which it gives positive
effects on stock market/sector/scripts are as follows :

      GDP GROWTH 8.6% IN 2010-11 IN REAL TERMS.
      EXPORTS HAD GROWN BY 29.4% DURING APRIL TO JANUARY 2010-11.
      INDIAN ECONOMY EXPECTED TO GROW AT 8.75-9.25% IN 2011-12 : +VE FOR STOCK
      MARKET
      AVERAGE INFLATION EXPECTED LOWER : +VE FOR STOCK MARKET
      DIRECT TAX CODE(DTC) PROPOSED TO BE EFFECTIVE FROM APRIL 01,2012
      CASH SUBSIDY TO KEROSENE,LPG & FERTILISERS : +VE FOR CHAMBAL,NAGARJUNA
      NUTRIENT BASED SUBSIDY(NBS) TO COVER UREA,ACTIVELY CONSIDERING : +VE FOR
      CHAMBAL,NAGARJUNA
      DISINVESTMENT TARGET IS MORE HIGHER TO RS.40,000 CRORE IN 2011-12 : +VE FOR
      HINDUSTAN COPPER
      FII ALLOWED TO INVEST IN EQUITY MUTUAL FUNDS IN INDIA : +VE FOR STOCK MARKET
      FII LIMIT FOR INVESTMENT IN CORPORATE INFRASTRUCTURE BONDS RAISED TO DOUBLE :
      +VE FOR STOCK MARKET,INFRASTRUCTURE COMPANIES
      ADDITIONAL BANKING LICENCES TO PRIVATE SECTOR PLAYERS : + VE FOR IFCI
      RS. 6000 CRORE TO PSU BANKS : +VE FOR VIJAYA BANK
      “INDIA MICRO FIN EQUITY FUND” OF RS.100 CRORE WITH SIDBI FOR MICRO FINANCE : +VE
      FOR IFCI,TFL(TRANSWARRANTY FINANCE, INDIA LEASE DEVELOPMENT
      RS.3000 CRORE TO NABARD FOR HANDLOOM WEAVER
      INTEREST SUBVENTION OF 1% FOR HOUSING LOAN : +VE FOR HOUSING COMPANIES
      HOUSING LOAN LIMIT INCREASED TO RS. 25 LAKH :+VE FOR HOUSING COMPANIES
      RURAL HOUSING FUND RAISED TO RS.3000 CRORE : +VE FOR HOUSING COMPANIES
      TO ENHANCE CREDIT WORTHINESS TO LIG HOUSEHOLDS : +VE HOUSING COMPANIES
ALLOCATION TO RKVY(RASHTRIYA KRISHI VIKAS YOJANA) INCREASED : +VE FOR
AGRICULTURE,FMCG COMPANIES
TO IMPROVE RICE BASED CROPPING SYSTEM ALLOCATION OF RS. 400 CRORE : +VE FOR REI
AGRO,USHER AGRO,KARUTURI GLOBAL
ALLOCATION OF RS.300 CRORE TO PROMOTE 60,000 PULSES : +VE FOR REI AGRO,USHER
AGRO,KARUTURI GLOBAL
ALLOCATION OF RS. 300 CRORE TO BRING 60,000 HACTERS UNDER PALM OIL PLANTATION:
+VE FOR KRITI IND,KRITI NUTRIENS,KARUTURI GLOBAL
ALLOCATION OF RS. 300 CRORE FOR IMPLEMENTATION OF VEGETABLE INITIATIVE: +VE FOR
AGRICULTURAL COMPANIES
ALLOCATION OF RS. 300 CRORE TO PROMOTE HIGHER PRODUCTION OF BAJRA,JOWAR
TO PROMOTE ORGANIC FARMIG METHODS: +VE FOR KARUTURI GLOBAL
ALLOCATION OF RS.300 CRORE TO PROMOTE ANIMAL BASED PROTEIN PRODUCTION
15 MEGA FOOD PARK : +VE FOR REI AGRO,USHER AGRO,KARUTURI,KRITI IND,GODREJ
CONSUMER
MODERN STORAGE CAPICITY WILL BE ELIGIBLE FOR FUNDING FROM FINANCE MINISTRY
ALLOCATION OF RS.2,14,000 CRORE FOR INFRASTRUCTURE IN 2011-12 & IS UP 23.3%. : +VE
FOR INFRASTRUCTURE COMPANIES
TAX FREE BONDS OR RS.30,000 CRORE TO BOOST INFRASTRUCTURE DEVELOPMENT : +VE
FOR INFRASTRUCTURE COMPANIES
NATIONAL MISSION FOR HYBRID & ELECTRIC VEHICLES TO BE LAUNCHED: +VE FOR M&M
CAPITAL INVESTMENT IN FERTILISER TO TREAT AS INFRA SUB-SECTOR : +VE FOR CHAMBAL
& NAGARJUNA FERTI
EXPORTERS TO GET FAST REFUND OF TAXES PAID IF ELIGIBLE : REI AGRO,KARUTURI, S
KUMAR,SUPER SPINNING,STURDY IND,USHER AGRO,GODREJ CONSUMER
MEGA CLUSTER SCHEMES EXTENDED & SEVEN MEGA LEATHER CLUSTERS TO SET UP
TO PROVIDE RURAL BROADBAND CONNECTIVITY TO ALL 2,50,000 PANCHAYATS
ALLOCATION TO EDUCATION INCREASED BY 24% : +VE EDSERVE
CONNECTIVITY TO 1,500 INSTITUTIONS THROUGH OPTICAL FIBER BACKBONE
PLAN ALLOCATION TO HEALTH UP BY 20%
BANKING FACILITIES TO 73,000 RURAL AREAS HAVING POPULATION OVER 2,000 : +VE FOR
VIJAYA BANK & RURAL BANKING SECTOR
ALLOCATION TO DEFENCE INCREASED TO RS. 1,64,415 CRORE : +VE FOR ASTRA MICRO
SURCHARGE REDUCED TO 5% FROM CURRENT 7.5% : +VE FOR STOCK MARKET & ALL
COMPANIES PAYING SURCHARGE
MAT INCREASED TO 18.5% FROM 18%
TAX INCENTIVES EXTENDED TO ATTRACT FOREIGN FUND FOR INFRASTRUCTURE : +VE FOR
INFRASTRUCTURE COMPANIES
BENEFIT OF INVESMENT LINKED DEDUCTION TO FERTILISER COMPANIES : +VE FOR
CHAMBAL & NAGARJUNA
      INVESTMENT LINKED DEDUCTION TO BUSINESS DEVELOPING AFFORDABLE HOUSING : +VE
      FOR HOUSING COMPANIES
      WEIGHTED DEDUCTION ENHANCED TO 200 % FOR RESEARCH DONE IN LABORATORY :+ VE
      FOR ANUS LAB,LUPIN,ARVIND REMEDIES
      NO CHANGE IN CENTRAL EXCISE & PEAK CUSTOM DUTIES : +VE FOR STOCK MARKET ,AUTO
      EQUIPMENTS FOR STORAGE,WEARHOUSE EXEMPTS FROM EXCISE DUTY
      BASIC CUSTOM DUTY FOR AGRI MACHINERY REDUCED TO 2.5% FROM 5% : +VE FOR
      AGRICULTURE & FMCG COMPANIES
      BASIC CUSTOM DUTY FOR MICRO-IRRIGATION EQUIPMENT REDUCED TO 5% FROM 7.5% :
      +VE FOR RUNGTA IRRIGATION
      DE-OILED RICE BRAN CAKE FULLY EXEMPTED FROM BASIC CUSTOME DUTY : +VE FOR REI
      AGRO,USHER AGRO
      CUSTOM DUTY OF PET-COKE & GYPSUM REDUCED TO 2.5% : +VE FOR CEMENT COMPANIES
      BATTERIES IMPORTED FO ELECTRICAL VEHICLES FULLY EXEMPT FROM BASIC CUSTOM DUTY
      & CONCESSIONAL RATE OF CENTRAL EXCISE DUTY : +VE FOR M&M
      CONCESSIONAL EXCISE DUTY OF 10% FOR FUEL CELL TECHNOLOGY VEHICLE.
      MANY BENEFITS,DUTY EXEMPTION & REDUCTION FOR HYBRID VEHICLES:+VE FOR M&M
      EXCISE DUTY OF LEDs REDUCED TO 5% & SPECIAL CVD FULLY EXEMPTED : +VE FOR MIC ELE
      FULL EXEMPTION OF CRUDE PALM STEARIN USED TO MAKE LAUNDRY SOAP FROM BASIC
      CUSTOMS DUTY : +VE FOR GODREJ CONSUMER
      EXCISE DUTY EXEMPTION FOR CAPITAL GOODS NEEDED FOR UMPPs : +VE FOR POWER
      COMPANIES,BHEL
      RELIEF MEASURES FOR AGARBATTI,LACTOSE,SANITARY NAPKINS,DIAPERS MFGS. : +VE FOR
      AMBICA AGARBATTI,LACTOSE
      SERVICE TAX REMAINS UNCHANGED AT 10%
      SHIP OWNERS CAN IMPORTS PARTS DUTY FREE
      TEXTILE,YARN MFGS CAN GET DUTY CUTS & BENEFITS : +VE FOR WINSOME YARN,S
      KUMAR, SUPER SPINNING,SELMCL,ALOK

Here are the few hot scripts sector wise. Positive sectors related news came out already.So,these
companies will be in lime light & may create firework in coming days.

Sector :                     Co.’s Will Be benefited if Good Announcement :

Infrastructure :             IRB Infra,Unitech,HDIL,DLF,GMR,LITL,Rel Infra,HCC,Sturdy,
                             CHD Developers,Asahi Infra
Housing :                    Unitech,HDIL,DLF,HCC,Ajmera,Sturdy Ind
Disinvestment :              Hind Copper
Agriculture :                REI Agro,Karuturi Global,Usher Agro,Rungta Irrigation,kriti
                             Ind,Kriti Nutriens,Godrej Consumer
Power :                        R Power, JP Power, Suzlon, NHPC, NTPC,REC,Sturdy Ind
FMCG :                         Godrej Consumer,REI Agro,Karuturi,Kriti Nutriens,Kriti Ind
Banking :                      Vijaya Bank
Pharma :                       Anus Lab,LUPIN,Arvind Remedies
Textile :                      S Kumar,Super Spinning,SELMCL,Alok,Winsome Yarn
Micro Finance :                IFCI,TFL,Ind.Lease Development,
Fertilizers :                  Chambal,Nagarjuna
Housing Finance :              IFCI,LIC Housing,India Lease Development
Chemicals :                    HOCL(Hind Organic),India Glycol,Shree Rayalseema
Irrigation :                   Rungta Irrigation
E-Governance & IT              Edserve
Education :
Auto :                         M&M,Maruti,Sturdy Ind
Media & Film:                  RBN,Shri Ashtavinayak,ATN Inter
Exports:                       REI Agro,Karuturi,Usher Agro,S Kumar,Super Spinning,
                               Sturdy Ind,Godrej Consumer,Winsome Yarn,M&M
Textile Yarn:                  Winsome Yarn,
Electric Vehicles:             M&M
Weightage Deduction            Anus Lab
of 200% :

High Risk Traders/Investors, Keep Eyes on, Ageegold,Birla Erricson,Ferro alloys,Hind
Motor,ITI,Calcom Vision,Noble Explos,Onward Techno,Ispat,Bellary,Austral
Coke,FSL,Caprihans… from respective sectors.

Please Note that, all sectors & scripts mentioned in this article is purely our personal opinion only.
Take decision of investment at your risk & at your end.

May u all get profits in all scripts u have or u r going to trade.

With Best wishes & regards,

Paras K.Ghelani(PG)
Research Analyst,Stock Market Consultant & Adviser,
Jamnagar,Gujarat,India.
Mobile :090990 10827
Yahoo ID : smile_starter_for_u_1
Email : smilestarterforu@gmail.com

								
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