Some Thoughts on what can be expected in this Budget....!!!
a) It is evident that some of the sops by way of reduction in Excise Duty & etc. which were given during the meltdown will be rolled back to some extent....towards fiscal consolidation which was not met during FY'12
Reaction from the companies affected will be nothing less than childish...for a simple reason that these so called Captains of the Industry do not really think about our country but are solely pre-occupied with strategies of how to give less to the government....!!!
b) ITC shall again be at the receiving end of Hike in Excise.... but the company is very very good... and they have moved away from being a Tobacco company to a full fledged FMCG...!!!
c) One can expect some tweaking of the minimum Individual Income Tax Slab....that should bring about a bit of cheer...!!!
d) Definitely lot of talk about agricultural sector... and outlays for the FY'13
e) Increased allocation involving Banks for the Rural Sector will create a kneejerk reaction on Banks...!!!
f) Reduction in STT which is not being talked about on the channels.... can prove to be the biggest Market Mover.....!!!
Above are just some broad points that was going through my mind....as far as the market is concerned....irrespective of what kneejerk reactions are witnessed during FM's speech.... we are headed higher for sometime....!!!
Overall reaction will be, 'There wasn't enough done' ofcourse, peppered with all sorts of even Brighter Suggestions... as an after thought....
SG