Budget 2024: Winners And Losers Of Interim Budget
Here are the key announcements and their impact on companies.
Finance Minister Nirmala Sitharaman announced the government's proposals to boost housing and infrastructure, while maintaining its fiscal consolidation path in the interim budget.
Here are the key announcements and their impact on companies:
Housing Schemes
Announcements
The government aims to build 2 crore more houses in rural areas under the PM Awas Yojana (Gramin), in addition to its existing target of 3 crore, which it is close to reaching.
The government will launch a scheme to help deserving sections of the middle class, living in rented houses or slums, to buy or build their own houses.
Impact: A boost for developers, housing finance and makers of cement, steel and pipes to other building materials.
Likely Gainers: Brigade Enterprises Ltd., Mahindra Lifespaces Ltd., Sobha Ltd., Prestige Estates Ltd., Oberoi Realty Ltd., Suntech Realty Ltd., Puravankara Ltd., Housing And Urban Development Corp.
LIC Housing Finance Ltd., PNB Housing Finance Ltd., Aptus Value Ltd., Ganesh Housing Corp., Home First Finance Co., Awas Financiers Ltd., Can Fin Homes Ltd., Star Housing Finance Ltd.
UltraTech Cement Ltd., JK Cement Ltd., Ramco Cements Ltd., India Cements Ltd., Astral Ltd., Apollo Pipes Ltd., Prince Pipes Ltd., Hariom Pipes Ltd., Venus Pipes Ltd., Century Plyboards Ltd., Kajaria Ceramics Ltd, Cera Ltd., Asian Paints Ltd., Berger Paints Ltd., Kansai Nerolac Ltd., Greenpanel Industries Ltd.
Capex Outlay Rises
Announcement: The capex outlay has been raised by 17% over the revised estimates of FY24 to Rs 11.11 lakh crore, accounting for 3.4% of the GDP.
Impact: Will boost orders for infrastructure companies.
Likely Gainers: Larsen and Toubro Ltd., NTPC Ltd., IRB Infrastructure Developers Ltd., Dilip Buildcon Ltd. Ashoka Buildcon Ltd., J Kumar Infraprojects Ltd., HCC Ltd., NCC Ltd.
Rs 1-Lakh-Crore Innovation Fund
Announcement: A corpus of Rs 1 lakh crore with 50-year interest-free loan, long-term financing or refinancing with low or nil interest rates to encourage private sectors to scale up research and innovation.
Impact: Sitharaman said it will boost innovation in deep tech and defence.
Likely Gainers: Zentech Manufacturing Ltd., Adani Defence Ltd., Paras Defence Ltd., Hindustan Aeronautics Ltd., Larsen & Toubro Ltd., Bharat Heavy Electrics Ltd., Bharat Dynamics Ltd.
New Bogeys Like Vande Bharat
Announcement: 40,000 rail bogeys to be converted to Vande Bharat standards.
Impact: Makers of rail coaches and suppliers to the Indian Railways.
Likely Gainers: Titagarh Wagons Ltd., Jupiter Wagons Ltd., Texmaco Ltd.
Coal Gasification Target
Announcement: The government plans to set up coal gasification and liquefaction capacity of 100 million tonne by 2030.
Impact: Coal gasification companies set to benefit.
Likely Gainers: Coal India Ltd., Gail India Ltd., NTPC Ltd.
Developing Lakshadweep
Announcement: Projects for port connectivity, amenities will be taken up on islands—including Lakshadweep.
Impact: Tourism and hotels industry set to benefit from the development of a new destination in India.
Likely Gainers: Indian Hotels Co., Chalet Hotels Ltd., Ease My Trip, Thomas Cook, Praveg Ltd.
Rooftop Solar
Announcement: Rooftop solar project to give 1 crore households 300 units of free electricity per month.
Impact: The move is aimed at expanding the rooftop solar market by generating demand.
Likely Gainers: KPI Green Energy Ltd., Waaree Renewable Technologies Ltd., Gensol Engineering Ltd., Sterling and Wilson Renewable Energy Ltd., Inox Green Ltd.
Budget Losers
Tax Relief For Manufacturers To End
The concessional corporate tax rate of 15% for manufacturing companies not extended, according to the budget document.
Impact: Tax rate for manufacturing companies will rise to 22%.
Likely Losers: Deepak Nitrite Ltd., Aarti Industries Ltd., Clean Science and Technology Ltd., Vinati Organics Ltd., Maruti Suzuki Ltd., Tata Power Ltd., Tata Chemicals Ltd.