Budget Updates as soon as FM says

Budget Updates: My Charts: Fastest & latest
Overall Summary: Good For AAM AADMI & Farmers, My Charts: OK for Industry & Marginally Negative for Markets

-ve's

1. PSU LOANS WAIVER TO FARMERS: www.my-charts.info. WE FEEL THERE WERE BETTER WAYS TO DO GOOD TO FARMERS LIKE SUBSIDISING FERTILISER, BETTER IRRIGATION, CHEAP GRAINS, THIS 60000 CRORES FROM OUR POCKETS TO COMPLETE WAIVE OFF, IS DAMPNER FOR MARKETS AS WELL AS OUR MONEY.!!!

2. SHORT TERM CAPITAL GAIN INCREASED FROM 10% TO 15% - www.my-charts.info. THIS MEANS WITH EVERY Rs.100 that I earn by taking risk & investing in markets, I need to give 15% to
government!!! this will soak up the liquidity from market.

3. Corporate Dividend Tax & Surcharge: Rate Unchanged. - www.my-charts.info. Markets were expecting rate cut or at least waiver of surcharge.

4. Secutiry Transaction Tax: www.my-charts.info. Earlier was deducted from Profit, will now be as deduction from prices, thus decreasing volumes in people trading in Arbitrage Theroy.

5. Nothing in Budget for Infrastructure & Power Sector. - www.my-charts.info. Very Much Expected by markets

+ve's:

1. For AAM AADMI: Basic Tax Slab www.my-charts.info. increased from 1.1 lakhs to 1.5 Lakhs & 1.8 Lakhs to women,Rs.2.25 Lakhs to senior citizen.Minimum Relief to every Assess Rs.4000 - To increase consumer spending

2. Good Outlook and packages for Pharma Sector, www.my-charts.info. Education Sector, Agriculture Sector

3. Good Rate Cuts in Excise on Autos and other sectors, www.my-charts.info. +ve Indirect taxes policy.

4. Double dividend taxation from subsidiary to parent company to be cut. www.my-charts.info.

India has room to manage inflation as we are 400 bps higher in interest rates than US economy where, 3% is CRR. www.my-charts.info.

Report Card:

More than 8% growth in 12 successive quarters,Average growth 8.8% in last 5 years,
Expected GDP growth 8.7, FM expects 8.8%,
Drivers of growth: Services, manufacturing, grown at 8.7 & 9.4 % respectively.
Global economy down, Agriculture growth 2.6 %, in spite of last budget being only on Agriculture
Pressure due to inflation and inflows
Govt will monitor to foreigns inflows due to high volume inflows.
2008-09 year of consolidation.
Current fiscals Deficit at 3.1 % vs 3.3%
Tax to GDP, ratio 12.5%

Sector & Market Effects

Pharma: UP! UP! UP!
16534 crores for health sector, www.my-charts.info. Ranbaxy and other pharma stocks up.
TO spend Rs. 120 billion on National Rural Health Plan, www.my-charts.info. To benefit Panacea Biotech
To give 5 year holiday to Hotels in some areas, 5 year holidays to hospitals, www.my-charts.info. + ve for Applop & Fortis
Weighted Deduction of 125 % in Research & Development. www.my-charts.info.
To Cut Excise on All pharma from 16 to 8% - www.my-charts.info. Good for Market
On Bulk drugs, customs duty decrease from 12.5% to 5%. www.my-charts.info.

Education: UP! UP! UP!
Allocation for education to be raised to Rs.34400 crores. www.my-charts.info. Will benefit, Educomp, NIIT, Everronn and all educational

Agriculture: UP! UP! UP!
Govt to waive off agriculture lons upto March 2007, that amounts to 4% of all PSU loans and 60000 crores waiver. www.my-charts.info.
Capital goods to benefit from spending on agriculture. www.my-charts.info.
Customs duty, peak rate to non agriculture sector, www.my-charts.info. Down from 12 % to 10%
To support domestic fertiliser by reduction on duty. www.my-charts.info.

Information Technology: Neutral

Information Technology: www.my-charts.info. 1680 crore to spend on knowledge Centre
75 crores to be spend on broadband on rural areas. www.my-charts.info.
Thrust on Smart Cards, +ve for Bataronics India. www.my-charts.info.
Higher Excise duty on Packaged Software from 8% to 12%, - Negative for already suffering Rupee. www.my-charts.info.
Desktop boxes used in IT - Fully exempt. www.my-charts.info.

Textiles: UP!
Textiles All 30 integrated textil parks to improve. www.my-charts.info. For TUFS to increase from to 1090 crores. up by 20%
To increase Risk Capital fund in SIDBI. www.my-charts.info. Scheduled commercial banks to make good any amount short to SIDBI & NABARD

Oil & Gas: UP!
India to get $ 8 billion from latest gas & Oil Auction. www.my-charts.info.

Infrastructure: UP!
Increased spending to Rajiv Gandhi Drinking water, www.my-charts.info. Beneficial to IVRCL
To allot Rs.128 crore for highways, www.my-charts.info. +ve for HCC & IVRCL
Bidding for 5 UMPPS,www.my-charts.info. +ve for PFC
Subsidy to new houses, and upgradiaton to new houses. www.my-charts.info.

Defence: UP!
Higher Defence Outlay: www.my-charts.info. +ve for M&M & Astra Microwave

Hotels: UP!
5 Year tax holidays in specified areas. www.my-charts.info.

Auto: UP! UP!
To cut excise duty from 16% to 12% on small cars:www.my-charts.info. +ve for Tata Motors

Cement: Neutral
Excise duty on Cement at Rs.400/Tonne or 14% of value, which ever is higher- www.my-charts.info. No Impact No Change in Excise Duty in RETAIL CEMENT

Tobacco: Neutral
To tax filtered & non filtered Cigrattes on par - www.my-charts.info. Marginally -ve for ITC

Communication: UP!
Wireless Data Cords: www.my-charts.info. Excise cut from 16% to NIL.

Steel: Neutral
Steel Melting Scrap: www.my-charts.info. Customs duty cut from 5% to NIL.


Direct Taxes: UP! UP! UP! UP!

1. Basic Tax Slab increased from 1.1 lakhs to 1.5 Lakhs & 1.8 Lakhs to women,Rs.2.25 Lakhs to senior citizen.Minimum Relief to every Assess Rs.4000 - To increase consumer spending & companies. www.my-charts.info. +ve impact, Companies +ve GSK & Marico.
2. Dividend Distribution Tax Unchanged at 15%.
3. No Change in Security Transaction Tax Rate.
   
4. Banking Cash Transcartion tax withdrawn.
5. No Change in Corporate Tax & Surcharge.
   
6. Short Term Capital Gain Increased from 10% to 15% - very -ve for market & taking liquidity away from markets.
7. Major Impact: Ealier STT was reduced from profit now, will be taken as decution from purchase or sell price - -ve for market

Indirect Taxes: UP! UP! UP! UP!

To Cut Excise on Paper & Paper Products
General CENVAT rate cut from 16% to 14%
Project Imports cut from 7.5% to 5%
Sports goods, customs duty cut from specified 7.5% to 5%
Excise duty to be reduced from 16 to & 8% for water purification
Commodity Transaction tax introduced.
CST cut from 3 to 2%

Other Non eventful details:
FM to increase spending on Bharat Nirman Project to 31200 crore.
100 crore to informnation texhnology for knowledge centre
16 Central Institutes to be opened, 6000 schools to be opened
16 Central Institutes to be opened, 6000 schools to be opened
LIC to rapidly scale up women Self Help Group, govt will subsidy this