Post Rail Budget feedback from Mr. Rohit Gadia

Volatility ruled the market throughout the sessions, Nifty future opened on 7611.25 on a flat note and hit an intraday low of 7486.05 during the starting of the budget session, later it recovered from this due to few important announcements related to increase in tax exemption limits. Reality stocks surged after the Finance Minister said the government will provide tax incentive for Real Estate Investment Trusts.  It registered an intraday high of 7753.90 in mid afternoon trades. Near the closing of market, it again came in negative zone. Thus the mixed bag of reactions from investors came in picture for Union Budget 2014-15 presented by Arun Jaitley.

Key expectations:-

*Expect the budget to support growth, be anti-inflationary and committed to fiscal consolidation

*Expectations are high of the exemption on tax limit for individual person

*A series of measures and tax incentives to revive investments and industrial growth.

*The excise duty concessions for automobile and consumer durable sectors.

Expectations Met:-

DIRECT TAXES- No change in tax rate, personal income tax exemption limit raised by 50k to 2.5lac for individual and 3 lac for senior citizens

No change in surcharge for corporate or HUF

FDI to be promoted in various sectors, 100% FDI in e-commerce

Insurance & Defence FDI limits raise to 49%

Impose custom duties of 10% on telecom.

Additional custom duties on products computer components.

Exempt colour picture tubes from basic custom duties.

Increase of basic custom duty on steel.

Most exciting feature from budget 2014-2015

Excise duty on cigarettes rose from 11% to 72%

Investment allowance for smaller industries.

7060cr allocated to create new smart cities (Infra stocks reacted positively to the this allocation)

Diamonds to get cheaper

Investment limits for public provident fund raised to Rs 1.5 lac. Per year.

Two bank account in each house.

5 more IIT‘s & IIM’s

4000 cr. Allocated for Low cost Housing Projects.

Proposes number of measures to energise Indian capital market like to Introduce one single DEMAT a/c to boost simplicity.

Expectations Not met:-

No updates on automobile sectors

Revamp of MNREGA (no clear cut measures).