Special
Impact on Sectors
Measures announced in Budget 2018-19 have brightened the prospects
of several sectors and stocks, while adversely affecting a few
Healthcare
Agriculture
Measure: Annual health cover of Measure: Minimum support price
Impact: Both measures will help Impact: Farmers to realise better
Stocks: Apollo Hospitals, Max
India, Fortis Healthcare and
Narayana Health (Hrudayalaya) to
benefit if they tweak their models. Stocks: M&M, Escorts, Godrej
Agrovet, UPL and Insecticides India
could benefit from these measures.
`5 lakh per family under National
Health Protection Scheme covering
10 crore poor and vulnerable
families. The government will spend
`1,200 crore to set up 1.5 lakh
healthcare centres.
improve healthcare infrastructure.
Availability of drugs will improve.
Aviation
Measure: Increase in Internal
and Extra Budgetary Resources
support of `4,086 crore (up 52 per
cent year-on-year) to ministry of
aviation. The regional connectivity
scheme (UDAN) will connect
56 unserved airports and 31
unserved helipads. Airport capacity
expansion by five times to handle
one billion trips per annum in the
next few years.
Impact: Passenger traffic set to
increase for all carriers, which will
boost revenues and profits.
Stocks: Interglobe and Spicejet
currently operate UDAN flights
and stand to gain from this move.
(MSP) of crops to be 1.5 times
of production cost. Allocation of
funds to food processing industry
doubled. Upgrading rural haats to
Gramin Agri Markets in order to
facilitate direct sales from farmers.
returns for their produce, thereby
putting more money in their hands
for consumption.
Automobile &
Auto Ancillary
Measure: Customs duty on truck
and bus radial tyres raised from 10
per cent to 15 per cent to protect
domestic industry from cheaper
imports, which constitute 38 per
cent of total tyre imports.
Impact: The move will curb
demand for imported tyres.
In turn, demand for local tyre
companies will substantially
increase and will boost their
earnings too.
Stocks: JK Tyre, Apollo Tyre,
MRF to benefit from this measure.
Consumer
Durables
& FMCG
Banking
& NBFCs
Measure: Government to establish
a dedicated affordable housing
fund under the National Housing
Bank. Under Prime Minister Awas
Scheme, over one crore houses to
be constructed in rural India and 37
lakh units in urban areas over FY17-
19. Gold Monetisation Scheme will
be revamped to enable hassle-free
gold deposit accounts.
Impact: Demand for home loans to
improve as more people will be able
to buy their own houses.
Stocks: HDFC, GIC Housing,
LIC Housing, HUDCO, Muthoot
Finance and Manappuram Finance
to benefit from these measures.
Measure: The Budget proposals
will result in an increase in prices
of groundnut oilseeds, safflower
seed oil and palm oil. Hike in
customs duty on perfumes and
toiletries preparation.
Impact: Higher import duties on
perfumes and toiletries and rise
in cost of palm oil and safflower
oil will lead to an increase in input
costs for FMCG and edible oil
manufacturers.
Stocks: Hindustan Unilever,
Godrej Consumer, Marico,
AgroTech to be affected negatively
as input prices will go up, affecting
operating margins.
www.outlookmoney.com February 2018 Outlook Money
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