Most analysts expect the government to increase its outlay for various sectors in a bid to revive the slowing economy.
Finance Minister Nirmala Sitharaman will present the first full budget of the Narendra Modi government's second term on Feb. 1.
Here's a sector-wise list of what analysts from Antique Stock Broking, CARE Ratings, Citi, Edelweiss Capital and IIFL Finance Ltd. expect from Budget 2020:
Agrochemicals
- Increase in the Mahatma Gandhi National Rural Employment Guarantee Act outlay and agri credit will aid all agrochemicals and fertiliser companies.
- Increase in the subsidy allocation of urea and complex will benefit all major fertiliser companies.
- Increase in allocation towards nutrient-based subsidy will aid the sector.
Automobile
- Scrappage policy will aid both auto and ancillary sectors.
- Lower individual tax rate will aid two-wheelers more.
- Higher infra and rural spending will aid two-wheelers and tractors.
Banks
- Allocation of funds to recapitalise lenders will aid public sector banks.
- Fiscal road map and borrowing program if higher will dent state-run banks.
- Higher tax deductions related to home loans will aid housing finance companies.
Also Read: Budget 2020: Further PSU Bank Recapitalisation Seen Unlikely
Building Materials
- Impetus for the real estate sector will aid pipemakers, tilemakers and sanitaryware makers.
Cement
- Higher allocation to infrastructure and low-cost housing will aid all cement makers.
- Removal of clean energy cess on coal will aid margins.
Also Read: BQ Survey: Cement Prices Rise To Five-Month High In January
FMCG and Consumer Durables
- Higher allocation to rural-centric schemes and reduction in personal tax will aid all FMCG and consumer durable companies.
Also Read: India's FMCG Sector Growth Slows For Fifth Straight Quarter, Says Nielsen
Industrials
- Increase in investments in key infrastructure sectors will aid engineering, procurement and construction firms and heavy engineering companies.
- Increase in budgeted amount for metro projects.
- Increased allocation to the defence sector.
Infrastructure
- Higher impetus and spends on roads to aid toll and EPC companies.
IT
- Potential extension of special economic zone tax benefit sunset clause which is expiring on March 31, 2020.
Logistics
- Infrastructure status will aid all logistics companies.
Metals & Mining
- Reduction in import duty of coking coal and coke will aid steelmakers due to lower input costs.
Oil & Gas
- Inclusion of natural gas under GST will impact all gas stocks.
Pharmaceuticals
- Tax incentives for new plants will aid the entire sector.
- Weighted average deduction to R&D could be increased, aiding the sector.
Also Read: Budget 2020: Invoking Fiscal ‘Escape Clause' May Allow RBI To Buy Government Bonds Directly
Real Estate
- Increase in deduction limit for homebuyers will aid the sector.
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