Budget 2016 is here! What does it hold?

The Honourable Finance Minister presented the Annual Budget 2016 today (February 29, 2016) in the parliament. While he touched upon a lot of points, here is a brief on what the budget holds for the different sectors in the stock market and some specific scrips that would be affected.


  • 4 new schemes to enhance dairy-farming in India at Rs. 850 crores. A positive for Prabhat Dairy


  • ePlatform to connect wholesale Agri markets. This is a positive for Dhanuka Agritech
  • Unified agri market scheme to enhance farmer access to markets. Fertiliser companies will benefit
  • Have to give farmers income security, aim to double farmer income.
  • Propose to spend Rs. 86500 crores on irrigation projects in 5 years. A shot in the arm for Jain Irrigation
  • Allocation for Accelerated Irrigation Benefits Program at Rs. 17000 crore for FY17
  • Allocation to farming sector at Rs. 35984 crore


Banking, Finance and Insurance

  • Government to make provision for Bank recap in FY 17. Positive for Banks
  • Propose to launch new health care scheme with Rs. 1 lakh as cover per family. Positive for Insurance companies
  • Propose Rs. 5500 crore for crop insurance scheme for FY 17. Positive for Insurance companies
  • Finance Minister says Rs. 25000 crore for bank recapitalisation. The amount is less than expected. So a negative for PSU Banks


  • To raise excise duty on most tobacco products by 10 – 15%. This is a negative signal for ITC, VST Industries, Godfrey Phillips

Information Technology

  • To set up high education financing agency with Rs. 1000 crore capital. A positive for Aptech
  • To focus on social sector especially health care, education and skill development. Positive for Education companies

Real Estate

  • Propose 100% deduction to undertakings for construction of affordable housing. Positive for DLF, DB Realty, NBCC
  • Raise personal IT house rent exemption to Rs. 60000 from Rs. 24000 per annum


  • Clean energy cess for coal Rs. 400 per tonne. Negative for Coal India, JSW

Oil & Gas

  • To incentivise gas production from deep-sea and ultra deep waters, positive for ONGC, Cairn
  • No re-imposition of customs duty on crude

Health Care

  • To exempt part of Dialysis equipment from basic customs duty. A positive for Opto Circuits


  • Propose Rs. 8500 crore for rural electrification. Positive for Power Grid, NTPC, PFC, REC
  • FM allocates Rs. 9000 crore towards Swachh Bharat Mission. Positive for A2Z Infra
  • The Government is committed to the achievement of 100% village electrification by May 1, 2018. Augurs well for KEC International, L&T, Kalpataru Power


Source: moneycontrol.com

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