The Budget proposals for 2014-15 announced by Finance Minister Arun Jaitley has several measures for everyone, but more importantly, they suggest the government is moving in the right direction.
HSBC Global Research, led by Frederic Neumann, Co-Head of Asian Economic Research, said, "While there was no big bang, the overall tone was positive which should keep the country's feel-good factor going". Among the strongest moves were for the infrastructure and housing sectors, which will benefit lenders like SBI, HDFC and IDFC. SBI and HDFC will also benefit from higher FDI in insurance.
In the real estate space, analysts see more gains for DLF and Prestige Estates. Higher FDI in defence and focus on boosting India's manufacturing sector should benefit L&T, BEL, UltraTech and steel makers like JSW Steel and Tata Steel among others.
For individuals, too, the higher tax exemption and savings incentives and continuation of rural-focused schemes are positives and should help increase consumption. This is positive for HUL, Dabur and Godrej Consumer. ITC, which may see some impact on volumes due to hike in excise on cigarettes, should also gain from higher consumption of FMCG and paper products.
Morgan Stanley's analysts said in a note that from a stock market perspective, the investment push together with higher FDI limits in insurance and defence and steps to ease taxation should augur well for the progression of the share of profits in GDP.
Here are 15 companies that research houses believe could see significant impact due to the Budget proposals.
Text: Sheetal Agarwal and Jitendra Kumar Gupta, Business Standard
Image courtesy: AP