Top buy & sell ideas

 I recommend selling GSFC with a stop loss of Rs 135 and target of Rs 118, a sell on MRPL with a stop loss of Rs 120.50 and target of Rs 110 and a sell on Tata Chemicals with a stop loss of Rs 706.50 and target of Rs 665.

The Nifty futures on the Singaporean stock exchange were trading lower by around 131 points at 10,587, a fall of around 1.24 percent. This indicates that the domestic market is likely to open on a negative note.

  

Sell GSFC with a stop loss of Rs 135 and target of Rs 118

Sell MRPL with a stop loss of Rs 120.50 and target of Rs 110

Sell Tata Chemicals with a stop loss of Rs 706.50 and target of Rs 665

Sell Bajaj Finance with a stop loss of Rs 1661 and target of Rs 1570

Sell HDIL with a stop loss of Rs 53 and target of Rs 48

Sell Vedanta with a stop loss of Rs 321 and target of Rs 298

Sell Oriental Bank of Commerce with a stop loss of Rs 113 and target of Rs 101

Sell Allahabad Bank with target at Rs 57 and stop loss at Rs 65

Sell HCC with target at Rs 33 and stop loss at Rs 39

Sell IRB Infra with target at Rs 205 and stop loss at Rs 235

Buy National Aluminium Company with target at Rs 90 and stop loss at Rs 85

SAIL can slide to around Rs 75, keep stop loss at Rs 82

Tech Mahindra can climb to around Rs 640, keep stop loss at Rs 615

MORE WILL UPDATE SOON!!

SHORT TERM TRADE IDEAS

Buy Infosys, DLF, hold Dabur; sell Engineers India: Sudarshan .

Sometimes we can have an intraday up move and a larger downtrend which is what is happening. So today for the short, for the day trader, I have two buy ideas. One is Infosys. In the morning also I had suggested that largecap IT stocks will outperform and we should be buying them. That theme continues in the midday. So Infosys is a buying opportunity. This is just intraday."

DLF which is bouncing back from the lows is also a buy. Again intraday only.

One short sell idea is Engineers India (EIL). It has been cracking, but please keep your trades only till the end of the day. Except for the index do not carry anything else forward.

Dabur India in the next three to six months should see an increase in prices. So my suggestion would be hold on to this, keep it as a long term investment. Even after six months you should be a winner here."

My view on LIC Housing Finance is fairly bearish. So for the next three to six months, I do not see any significant price gains. Prices will remain subdued.

Sell Britannia Industries, Bharti Infratel, Hindustan Unilever: Prakash Gaba

Britannia Industries is still weak. It is still typically sideways zone, there is selling pressure. Possible target on the downside could be Rs 4,450 in the short term. It is purely a trading play out here, it looks certainly weak to me and is trading on the lower side of the trade.

Bharti Infratel looks weak to me. There is a very good chance that the stock can see a slide to maybe around Rs 320 zones. Keep loss stop above Rs 344, just Rs 2, but that is what is needed."

Hindustan Unilever (HUL) is another stock that looks weak to me. There is very good chance that we can see a slide to levels closer to Rs 1,325. It is cracking, stop loss above Rs 1,360 on HUL should be fine.

Buy Put options in ACC, L&T Finance Holdings, ICICI Bank: VK Sharma

ACC, L&T Finance Holdings and ICICI Bank where investors need to protect. In ACC, I am suggesting to buy the 1,660 Put at around Rs 24, keep a stop loss at Rs 16 and target of Rs 40. Otherwise, we see the stock falling to around Rs 1,580, its 200-day support. So you can continue to hold on to these Puts that you buy.

L&T Finance closed below its 200-day moving average first time after April 2016. So this could also fall to around Rs 138. So, I am suggesting to buy the 155 Put at around Rs 4.5 or whatever the price is at the open, with stop loss at Rs 3 and target of around Rs 10.

ICICI Bank, is a stock which I hold, but definitely a stock where I would like to recommend buying Put at 330, buy around Rs 8, stop loss at Rs 5, target of Rs 15. This stock could take support only around 200-day moving average which is around Rs 297.

The stock that I want to buy is ICICI Prudential Life Insurance where the 200-day moving average, 20-day moving average, and the other moving averages also hover between Rs 415 and Rs 417. Yesterday, the 420 Call quoted at around Rs 15. So I am buying this, should it fall to Rs 13, with a stop loss at Rs 8 and target of around Rs 22. I don’t think this will break the 200-day moving average, this is one stronger stock among the other largecap stocks.

Sell Tata Chemicals, Can Fin Homes, BPCL; buy Tata Consultancy Services: Sudarshan Sukhani.

 However, the theme is that we should be looking to sell into most intraday rallies or even in the morning if there is even a brief rally. The short sells are much easier, a lot of midcaps have already cracked even before Friday.

Tata Chemicals is a short sell, there is a large head and shoulder pattern which is been confirmed on Friday, it is an intermediate downtrend which is starting, and that is happening everywhere.

Can Fin Homes was already in a bear market of its own. That should exaggerate and continue on the downside. That is a short sell.

BPCL is a short, this stock has been hammered earlier also and that decline continues. LIC Housing Finance is making new lows. So there is a theme which is that midcaps are now available even now for shorting.

The one buy is Tata Consultancy Services (TCS). Assuming that markets will open lower, the lower level is an attractive buying opportunity in the largecap IT and that is TCS for me today.

MORE WILL UPDATE SOON!!

10,000-10,300 could be bottom for Nifty, earnings have to deliver to match high valuations: JP Morgan

He feels domestic liquidity may be partially disturbed in near term due to change in taxation and rising bond yields; but he expects SIP and provident fund flow to continue going ahead.

  

Bears remained in charge at Dalal Street on Monday as well. The Sensex fell more than 500 points in opening trade, taking total two-day losses to more than 1,300 points, but it showed some recovery from that opening lows.

Bharat Iyer of JP Morgan, personally, feels Nifty could be bottomed out at 10,000-10,300 levels and the next month could be challenging for India as well as globe.

It meant the market can fall further from here on, though the intermittent recovery could be possible as Iyer feels the current fall is definitely a buying opportunity for investors who missed the bus earlier.

Broader markets have been hitting hard but that does not mean the end of bull market, he said, adding we are getting into matured phase of bull market.

Valuations definitely picked up in last six months on easy monetary policy and pick up in economic growth, but earnings will have to do tough jobs to prove valuations, Iyer said.

On earnings, in an interview to CNBC-TV18, Bharat Iyer said earnings picture is still frothy. The research house expects 14-15 percent growth in second half of FY18 against earlier 25-30 percent growth, so the financial year 2017-18 growth could be around 8-10 percent.

Globally, he said, earnings and economic growth are picking up. The research house expects US Federal Reserve to do four rate hikes but market priced in only 2, he said.

As he said it is definitely a buying opportunity and we are in bull market correction, he advises taking exposure to financials with solid growth, cement, tractor, construction equipment etc.

He feels urban consumption theme has long way to perform and there is a little bit of cognisance of cost of capital which has been rising.

He is neutral on rural focussed themes like two-wheeler space. If they deliver 8-10 percent volume growth then that could be good, he said. "Don't chase these stocks at these levels."

On Budget 2018 front, he said most countries in the world do have long term capital gains tax of 15-20 percent and in comparison to that, India is still better at 10 percent.

He feels domestic liquidity may be partially disturbed in near term due to change in taxation and rising bond yields; but he expects SIP and provident fund flow to continue going ahead.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 10 stocks are being tracked by analysts on February 5

Morgan Stanley has upgraded Ashok Leyland to Overweight from equal-weight and raised target price to Rs 151 from Rs 101.30 per share.

Ceat

Brokerage - Macquarie | Rating - Outperform | Target - Rs 2,200

Macquarie has maintained its Outperform rating on Ceat with a target price of Rs 2,200 per share as it expects volume growth to improve in Q4FY18 & FY19.

It believes company's EBITDA margin should improve going forward. The research house expects an EPS CAGR of 15 percent over FY17-20.

Brokerage - Deutsche Bank | Rating - Buy | Target - Rs 2,100

While having a Buy call on the stock with reduced target price at Rs 2,100 (from Rs 2,250 per share), Deutsche Bank said it cut FY18-20 EPS forecasts by 5-7 percent, though Q3 operating results were robust & in-line with expectations.

"We remain positive on Indian tyre companies as sector is seeing synchronised improvement. Constructive on company's medium-term growth on higher capacity, distribution," it said.

However, its preferred pick in sector is MRF.

Bayer CropScience

Brokerage - Investec | Rating - Hold | Target - Rs 3,900

Investec said Bayer CropScience's misplaced aggression leads to significant miss in Q3FY18.

The research house has Hold rating on the stock with reduced target price at Rs 3,900 from Rs 4,250 per share as valuations of 40.6x FY19 PE seems expensive.

Normal agri cycle, coupled with strong franchise should turn the tide, it believes.

IIFL Holdings

Brokerage - Credit Suisse | Rating - Outperform | Target - Rs 870

With maintaining Outperform rating on the stock with increased target price at Rs 870 (from Rs 640), Credit Suisse said IIFL Holdings' demerger could help reach better valuations.

Home loans, MSME & construction finance are key loan growth drivers, it feels.

Hindalco Industries

Brokerage - Macquarie | Rating - Outperform | Target - Rs 328

Macquarie said Hindalco Industries has reported Q3 standalone EBITDA 3 percent below its estimate due to cost inflation but company is better placed than peers during cost inflation.

Disciplined capital allocation & impressive cost management deserve premium valuation, it added.

Company remains its top pick in the metals coverage, Macquarie said while reiterating Outperform rating on the stock with target at Rs 328 per share.

Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 292

Morgan Stanley said strong aluminium price outlook & backward integration continued to support momentum.

Aluminium business EBITDA was a slight miss whereas copper business EBITDA was better-than-expected, it added.

Godrej Properties

Brokerage - Macquarie | Rating - Neutral | Target - Rs 858

Macquarie said key takeaway from Q3 results of Godrej Properties was strong momentum in business development.

The research house has retained its Neutral rating on the stock with increased price target at Rs 858 (from Rs 650) as there is no change to EPS.

Pick-up in sales and debt reduction are key risks to the stock, it said.

Preferred picks in the space are Prestige Estates & Phoenix Mills, it said.

Ashok Leyland

Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 151

Morgan Stanley has upgraded Ashok Leyland to Overweight from equal-weight and raised target price to Rs 151 from Rs 101.30 per share.

"Volume recovering and we are 13 percent above consensus for FY20e. M&HCV growth has picked up but discounts remain close to all-time highs," it said.

The research house further said the demand recovery and high capacity utilisation will lead to pricing recovery while lower electric vehicle risk for commercial vehicles will provide long-term support for the stock.

Brokerage - Credit Suisse | Rating - Underperform | Target - Rs 103

Credit Suisse said Q3 results were in-line with expectations and volume growth at 42 percent was strong.

While Q3 volumes supported by one-offs, January volume was also appear healthy, it added.

The research house is concerned on rising competitive intensity in space, given Tata’s aggression. It expects company's EBITDA margin to decline over 60/40 bps in FY18/19.

Credit Suisse has maintained Underperform rating on the stock with increased target price at Rs 103 from Rs 98 per share.

Bajaj Auto

Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 3,785

Morgan Stanley said Bajaj Auto's Q3 results were tad below estimates and leverage gain should drive Q4 margin. Topline growth was 2.5 percent below forecast, it added.

The research house expects domestic motorcycle run-rate to pick up, aided by demand recovery, new launches.

Thyrocare

Brokerage - Nomura | Rating - Buy | Target - Rs 851

Nomura said Thyrocare's Q3 revenue/EBITDA/net profit growth at 5.5/14/3 percent was ahead of estimates. Pick-up in diagnostic services at 18 percent YoY is encouraging, it added.

It thinks long-term growth expectation will be key determinant of stock performance and expects over 20 percent revenue growth going forward with higher volume demand.

The research house has maintained Buy rating on the stock with target at Rs 851 per share.

Union Bank of India

Brokerage - Macquarie | Rating - Underperform | Target - Rs 101

Macquarie said Union Bank of India has reported yet another quarter of high provisions. Guidance on credit cost & slippages remain high while margin has been lowered, it added.

It expects full-year losses for FY18 at Rs 3,200 crore versus earlier estimates of Rs 550 crore loss.

FY19-20 EPS estimates cut of 52/21 percent look high due to small base, it feels.

National Company Law Tribunal case resolution is key catalyst for the stock.

The research house has maintained Underperform rating on the stock with reduced target price at Rs 101 from Rs 112 per share.

Brokerage - Nomura | Rating - Buy | Target - Rs 165

Nomura has upgraded Union Bank of India to Buy from Neutral but cut target price to Rs 165 from Rs 190 per share.

"Valuations get undemanding and the worst on asset quality is behind us," it said. It expects return on equities to normalise to over 9-9.5 percent.

Brokerage - Credit Suisse | Rating - Neutral | Target - Rs 140

Credit Suisse has maintained its Neutral rating on the stock and slashed target price to Rs 140 from Rs 159 per share.

"While overall loan growth was weak, retail growth was strong at 18 percent YoY," it said. Return on equities will remain low even after corporate stress is provided for, it added.

Info Edge

Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 1,900

While having Overweight rating on the stock with target price at Rs 1,900 per share, Morgan Stanley said the company reported robust revenue in core business and Zomato remained one of company’s key strategic investments.

Overall, the research house tweaked estimates for FY18-20 and expects FY18 growth for 99Acres & Jeevansathi to be 20 percent YoY.

Brokerage - Credit Suisse | Rating - Neutral | Target - Rs 1,310

Credit Suisse has downgraded the stock to Neutral from Outperform but raised target price to Rs 1,310 from Rs 1,300 per share.

Margin was strong but marketing costs should pick-up again in Q4, it feels.

MORE WILL UPDATE SOON!!

Nifty still seen at 12,200-12,400 by Dec despite scary Friday post Budget 2018

Nifty should consolidate around 10,700-10,800 in the upcoming weeks but we retain our year-end target of 12,200-12,400 for the broad indices.

Investment Imperative Group

  

The Union Budget 2018 has evidently focused on increasing expenditure across the critical sectors than giving rebates, deductions on the direct taxation front. The government of the day is confident of spending taxes well for the upliftment of lower strata of the society than allowing for automatic course correction through market forces.

Rural contribution in terms of job creation, as well as participation in the mainstream, is inevitable for clocking 9-10 percent average growth over the next decade. Hence, there has been major impetus and allocation for rural infrastructure, healthcare facilities for lower middle and lower class, education sector which was long due for huge allocation.

Irrigation, affordable housing and civil construction companies focusing on rural infrastructure will see higher allocation for projects. Healthcare, education will see a systematic increase in spending over the next few quarters. Whereas, implementation of smart cities project, urban transport, electrification and waste management will be keys for justification of allocation towards the projects.

We expect flows towards equities to continue from investors in and outside of India given that post-tax returns on Indian equities continue to remain attractive when compared with debt, deposits, and alternative offerings.

Going forward, markets can see some retracement in the next few weeks on a marginal deviation of fiscal targets and long-term tax addition on equities. However, earnings and overall political landscape including elections, implementation of fund allocation will drive equities.

We are expecting corporates across manufacturing, real estate, automobiles, cement, steel, infrastructure to see a strong rebound in earnings in the December quarter.

Minimum support price (MSP) for farmers, farm loan allocation and focus on FPUs will help improve income, jobs at the farm level. The move will also allow farmers to consolidate, adopt new technologies and target higher productivity, exports which in turn should help retain inflation numbers and give a medium-term boost for a long-term solution.

Healthcare spending will push for facilities, hospitals in Tier II and Tier III cities resulting in an exhaustive coverage of medical facilities for the rural population.

On markets, Nifty should consolidate around 10,700-10,800 in the upcoming weeks but we retain our year-end target of 12,200-12,400 for the broad indices.

MORE WILL UPDATE SOON!!

Asia shares skid as inflation shadow spooks bonds

MSCI's broadest index of Asia-Pacific shares outside Japan shed 1.8 percent in the largest daily drop since late 2016.

   

Asian shares fell the most in over a year on Monday as fears of resurgent inflation battered bonds, toppled Wall Street from record highs and sparked speculation that central banks globally might be forced to tighten policy more aggressively.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 1.8 percent in the largest daily drop since late 2016.

E-Mini futures for the S&P 500 fell another 0.44 percent, an unusually sharp move for Asian hours and suggesting further losses in U.S. markets later in the session.

Japan's Nikkei sank 2.4 percent, while Australia's main index lost 1.7 percent and Chinese blue chips slid 1.1 percent.

Investors were spooked by Friday's U.S. payrolls report which showed wages growing at their fastest pace in more than 8-1/2 years and fuelling inflation expectations.

Futures markets reacted by pricing in the risk of three, or even more, interest rate rises from the Federal Reserve this year.

"The earnings data fits too closely with the narrative of emerging wage pressures to be dismissed," said Deutsche Bank macro strategist Alan Ruskin.

"The data will add fuel to the debate on whether the Fed is falling behind the curve. It will raise the chances of the Fed median dots shifting up to four rate hikes for 2018," he added.

That would be negative for emerging markets and commodity currencies, said Ruskin. Both the Australian and New Zealand dollars fell sharply in the wake of the job numbers, along with a range of Asian currencies.

It was also a major blow to government bonds. Yields on 10-year U.S. Treasury paper were up at a four-year peak of 2.86 percent, having jumped almost 7 basis points on Friday.

The 2-year yield was near a nine-year top at 2.162 percent, tightening financial conditions and offering a more competitive return compared to equities. The dividend return of the Dow, for instance, was 2.13 percent.

PRICED FOR PERFECTION

Wall Street had already been flashing expensive by many historical measures and sold off in reaction. The Dow fell 2.54 percent, the S&P 500 2.12 percent and the Nasdaq 1.96 percent.

It was the Dow's biggest daily percentage loss in 20 months and the largest point fall since December 2008. The three major indexes capped their worst weekly losses in two years, after closing at record highs the previous week.

"It has to be remembered that U.S. shares were priced for perfection at around 19 times earnings," said Craig James, chief economist at fund manager CommSec, noting the historic average is around 15 times.

"Still, U.S. companies have produced stellar earnings over the reporting period. So it is understandable that some 'irrational exuberance' would emerge."

With half of the S&P 500 companies having reported, 78 percent have beaten expectations against an average 64 percent.

Chris Weston, chief market strategist at broker IG, noted the sudden spike in volatility caused some rules-based funds to automatically dump stock as their models required.

"There is talk that volatility targeting annuity funds could have to sell a further $30 billion of stock this week and another $40 billion should realised volatility not retreat lower," he warned.

The lift in U.S. yields provided some initial support to the dollar after a rocky start to the year, though it was starting to lose altitude again in Asian trade.

Against a basket of currencies, the dollar was down a fraction at 89.127 having climbed 0.6 percent on Friday for its biggest single day gain in three months.

The dollar backed off to 109.87 yen from an early 110.29, while the euro nudged up to $1.2460 from $1.2425.

Any rally in the U.S. dollar is considered a negative for commodities priced in the currency, with the Thomson Reuters CRB index down 0.5 percent. Gold was off a touch at $1,330.50 an ounce after losing 1 percent on Friday.

In oil markets, U.S. crude fell 74 cents to $64.71 a barrel, while Brent lost 80 cents to $67.78.

MORE WILL UPDATE SOON!!

Nifty Bank Outlook for the Week (Feb 05, 2018 – Feb 09, 2018)

NIFTY BANK:

Nifty Bank closed the week on negative note losing around 3.60%.

As we have mentioned, last week that resistance for the index lies in the zone of 27400 to 27500 where trend-line joining earlier highs is lying. If the index manages to close above these levels then the index can move to the levels of 27900 to 28000. During the week the index manages to hit a high of 27652 and close the week around the levels of 26451.

Support for the index lies in the zone of 26400 to 26500 where break out levels are lying. If the index manages to close below these levels then the index can drift to the levels of 25700 to 25800 where break out levels and short term moving averages are lying.

Minor resistance for the index lies in the zone of 26600 to 26700. Resistance for the index lies in the zone of 26900 to 27000 where break down levels are lying. If the index manages to close above these levels then the index can move to the levels of 27400 to 27500 where trend-line joining earlier highs is lying.

Range for the week is seen from 25700 to 25800 on downside & 27000 to 27100 on upside.

MORE WILL UPDATE SOON!!

Nifty Outlook for the Week (Feb 05, 2018 – Feb 09, 2018)

NIFTY:

Nifty closed the week on negative note losing around 2.80%.

As we have mentioned last week, that resistance for the index lies in the zone of 11100 to 11200 where channel resistance for the index is lying. If the index manages to close above these levels then the index can move to the levels of 11400 to 11500. During the week the index manages to hit a high of 11171 and close the week around the levels of 10760.

Support for the index lies in the zone of 10600 to 10700 from where the index broke out of trend-line joining highs formed in the month of September-2016 and August-2017 is lying. If the index manages to close below these levels then the index can drift to the levels of 10400 to 10500 where break out levels and short term moving averages are lying.

Minor resistance for the index lies in the zone of 10850 to 10950. Resistance for the index lies in the zone of 11100 to 11200 where channel resistance for the index is lying. If the index manages to close above these levels then the index can move to the levels of 11400 to 11500.

High level of volatility can be expected during the week as the RBI policy is to be announced next week.

Broad range for the week is seen from 10300 on downside & 11100 on upside.

MORE WILL UPDATE SOON!!

Budget 2018: Not sure where to invest post Budget? Top 20 winning stocks to buy

On the overall basis, long-term capital gains tax doesn’t look dampening and revenue growth assumptions are looking realistic. Investors should focus on sectors/stocks having agri or rural theme. Escorts, Ashok Leyland, M&M, PI Inds and UPL will be positive.

   

The Finance Minister Arun Jaitley delivered the complete opposite of what the D-Street was expecting. Nevertheless, D-Street put up a brave face as the finance minister tinkered with the long-term capital gains tax (LTCG).

It was a political budget but at the same time balanced. Although, the rise in the fiscal deficit, as well as 10 percent tax on LTCG, might come as a disappointment to investors which is likely to be a short-term negative for D-Street.

However, after knee-jerk reaction the focus will shift back to earnings, say experts. The Disinvestment target of Rs80,000 crore for 2018-19 is conservative but again lacks boldness in divesting non-core assets.

“The Budget, being the last one before a general election was expected to tilt toward the voting populace and so it has played out accordingly. The MSME segment which bore the full brunt of the disruptions last year has been given some succour.

Now, that the event is behind us, it is likely the market would take the changes in its stride over the next few weeks and focus more on actual earnings which look like they should have a better year than at least the last few.

The focus of the Budget was largely on infrastructure, healthcare, education, agriculture sectors. Hence, the next set of multibaggers will come from this theme which is also the crucial question - where should investors put their money? Are there any stocks which are likely to gain the most from Arun Jaitley’s Budget 2018?

“On the overall basis, long-term capital gains tax doesn’t look dampening and revenue growth assumptions are looking realistic. Investors should focus on sectors/stocks having agri or rural theme. Escorts, Ashok Leyland, M&M, PI Inds and UPL will be positive,” Hemang Jani, Head Equity Sales & Advisory, Sharekhan told Moneycontrol.

“Other picks include names like Apollo Tyre: Raise in customs duty on truck-bus radial tyres from 10 to 15 percent to benefit the company. ITC: No increase in tax rates on Cigarettes – Qtrly nos have been in-line,” he said.

We have spoken to various experts and here are 20 stocks which are likely to benefit the most from the Budget, do you own any?

Analyst: Vinod Nair Head of Research at Geojit Financial Services

Escorts

Escort Ltd (EL) will be a direct beneficiary owing to the government focused approach to encourage farm mechanization and growth in infrastructure segment.

The total allocation for Rural, Agriculture and Allied sectors was Rs2 lakh core which is 10% higher than the previous budget.

Agricultural credit has also increased by 10% and fixed at a record level of Rs11 lakh crores, which is expected to drive demand for tractors. Similarly, Bhart mala projects will create additional demand for construction equipment’s segment.

Interglob Aviation (Indigo)

In the last 3 years, the Indian domestic air passenger traffic grew at 18% per annum, while domestic carriers were facing congestion in major airports.

Considering this, the proposal for increasing the capacity of 124 airports by 5 times is expected to boost the number of flights operated, higher traffic growth and operational efficiency. Indigo will be a key beneficiary from this move given in 40% in Indian aviation sector.

UPL Ltd:

The Minimum support price (MSP) of 1.5 times of the cost of production for notified crops and increase in Institutional credit for the agriculture sector to Rs.11 lakh crore is expected see an uptick in the area under cultivation which will boost demand for seeds and crop protection.

UPL with presence across agri-input value chain from seeds to post-harvest chemicals will be a key beneficiary from this.

Larsen & Toubro (L&T)

Allocation for NHAI and Roads & Bridges has increased by 16% to Rs 70,544cr from 60,671cr This will improve the outlook for infrastructure, EPC and BOT companies like L&T.

Additionally, the government is targeting to complete 9,000km of the national highway in FY18 which will help to rejuvenate the current execution cycle of EPC companies.

NBCC (India) Ltd

Urbanization is another priority for the government, like smart city and AMRUT. The total cash outlay is expected to be Rs2.04lakh crore, with as many 99 cities selected under the ambitious Smart city mission.

NBCC has been a Navaratna enterprise under Ministry of Urban development having expertise in executing large projects, is expected to be a key beneficiary.

Analyst: Rakesh Tarway, Head Research, Reliance Securities

HUL, Hero Motocorp, ITC, Godrej Agrovet:

Government impetus on rural spending will have a far-reaching impact on growth rates of country and reduction of income gaps in society. Companies and sectors deriving the majority of revenues from the rural economy like 2 wheelers, FMCG Companies, fertilizer companies will benefit from the push to rural spending.

KNR Construction, J Kumar, NCC, JK Cement and Sagar Cement:

Budget 2018 continued to put a strong focus on infrastructure development, which is in line with the expectations. FM has allocated an extra-budgetary support of Rs5.97 lakh crore compared to Rs3.96 lakh crore in the last budget for the infrastructure sector, which is encouraging as India needs a large amount of investment in infrastructure due to growing needs.

We understand higher allocation in infrastructure segment will essentially expedite infrastructure development in the country, which in turn will aid many industries i.e. metals, cement, building materials, etc.

We like construction companies like KNR Construction, J Kumar, NCC to play infrastructure theme from the budget. We also like cement companies like JK Cement and Sagar Cement to benefit from push to infra.

Thyrocare and Dr. Lal Path Labs:

Union Budget has also proposed coverage of Rs 5Lac per household to total 10 Cr households for hospitalization. The move will benefit hospital chains like Apollo Hospitals and Narayana Hrudyalay.

It will also have a positive rub-off impact on companies like Thyrocare and Dr. Lal Path Labs. Insurance companies will also benefit because of insurance premium received towards coverage of families.

Gruh Finance, DHFL, and Can Fin Homes:

Among other major initiatives budget has proposed the creation of affordable housing fund under NHB. This will benefit all affordable housing players like Mahindra Lifespace, Ashiana Housing etc.

It will also have a positive impact on affordable housing financiers like Gruh Finance, DHFL, and Can Fin Homes.

Apollo Tyres and JK Tyre:

Within tax proposals, the budget has proposed to increase customs duty on imported Truck and Bus Radials from 10-15 percent, which will benefit companies like Apollo Tyres and JK Tyres who have major exposure towards truck tyres.

MORE WILL UPDATE SOON!!

Here are the updates on the finance minister’s Union Budget 2018 speech:

•Propose to increase the custom duty on mobiles from 15% to 20% and on some other mobile parts to 15%, and some parts of TVs to 15%. 

• Propose to increase the health and education cess to 4% 

• Propose to tax long term capital gains exceeding Rs 1 lakh in listed stock at 10%.

 • Rs 50,000 additional benefit to senior citizens for investment in mediclaim. 

• A standard deduction of additional Rs 40,000 for salaried employees. This move will benefit 2.5 crore taxpayers.

 • No changes in the structure of income tax of individuals.

 • Rs 7000 crore will be the revenue foregone for the reduced corporate tax on MSMEs.

 • I propose to extend the benefit of the reduced corporate rate of 25% for companies with reported turnover of up to Rs 250 crore.

 • 100% tax deduction for the first five years to companies registered as farmer producer companies with a turnover of Rs. 100 crore and above.

 • 41% more returns were filed this year, which shows that more people have joined the tax net. 

• Demonetisation was received by honest taxpayers as ‘Imaandaari ka utsav’.

 • Revised fiscal deficit estimate for 2017-18 is 3.5% of GDP, fiscal deficit of 3.3% expected for 2018-19. 

• Automatic revision of MPs’ emoluments every five years, indexed to inflation.

 • Emoluments of President, Vice President and Governor being revised: Rs 5 lakh; 4 lakh; Rs 3.5 lakh per month respectively.

 • Exceeded the disinvestment target and collected Rs 1 lakh crore: FM.

 • The government insurance companies to be merged into a single entity, and subsequently listed in the stock exchange, as part of the disinvestment programme.

 • The government will assign every enterprise in India a unique ID on the lines of Aadhaar.

 • The government has identified 372 basic business reform actions. Each state will take up these reforms.

 • We will explore the use of blockchain

. • Rs 5.97 lakh crore allocated for infrastructure spending in India.

• 5 lakh WiFi hotspots to be set up in rural areas to provide easy Internet access. 

• Redevelopment of 600 major railway stations has been taken up; Mumbai transport system is being expanded; suburban network of 160 km planned for Bengaluru.

 • The government proposes to revamp the system of sanctioning of loans to SMEs. The information required for sanctioning the loan will be linked with GSTN and all required information can be fetched from GSTN Portal. It will help to grant the loans quickly and will help in reducing processing time.

 • UDAN will connect 56 unserved airports in India.

 • An institute is coming up at Vadodara to train people for the bullet train programme.

 • AMRUT programme will focus on water supply to all households in 500 cities. Water supply contracts for 494 projects worth 19,428 core awarded. 

• Rs 1,48,528 crore is the capital expenditure for the Indian Railways for 2018-19... All trains to be progressively provided with WiFi, CCTV and other state-of-the-art amenities. 

• Bharatmala project approved for better road connectivity at Rs 5.35 lakh crore.

 • Proposal to develop 10 prominent tourist destinations as Iconic tourism destinations.

 • Women’s contribution reduced to 8.33% towards PF in the first 3 years for new EPF accounts... The government will contribute 12% of EPF contribution for new employees in all sectors. 

• 70 lakh farming jobs have been created this year, shows an independent study. 

• Rs 3 lakh crore allocated for PM MUDRA Yojana.

 • The government is slowly but steadily progressing towards universal health coverage.

 • Announce allocation of Rs. 56,619 crore for SC welfare and Rs. 39,135 crore for ST welfare

 • Healthcare stocks trading higher after the government said it proposed to cover 100 million families via healthcare protection scheme. Apollo Hospital Ltd rose 4.1%, Thyrocare Technologies Ltd 2.6%, Healthcare Global Enterprises Ltd rose 3%. 

• Mass formalization of MSME sector is happening after demonetization and GST. 

• Total 187 projects sanctioned under the Namami Gange programme. 

• 24 new government medical colleges and hospitals to be set up by upgrading existing district hospitals.

 • Rs 600 crore for nutritional support to TB patients.

 • One medical college per every three constituency.

 • Have decided to take healthcare protection to a new aspirational level. Launching a flagship National Health Protection Scheme to cover 10 crore poor and vulnerable families, benefiting approx. 50 crore. Providing Rs 5 lakh per family per year for medical reimbursement, under National Health Protection Scheme. This will be world’s largest health protection scheme

 • Rs 1200 crore for the flagship programme in health wellness centres.

 • Eighteen new schools of planning and architecure will be set up... I propose railway university in Vodadara.

 • Eklavya schools to be started for Scheduled Tribe population... Scheme for revitalizing school infrastructure, with an allocation of 1 lakh crore rupees over four years. Called RISE - Revitalizing Infrastructure in School Education. 

• Integrated B.Ed programme to be initiated for teachers, to improve quality of teachers. 

• Technology will be the biggest driver in improving education. 

• Rs 14.34 lakh crore to be spent for providing livelihood to rural India through infrastructure building.

 • Loans to self help groups will increase to Rs 75,000 crore by March 2019. 

• We aim that by 2022, all poor people have a house to live in.

 • In the next financial year, we target the construction of two crore toilets.

 • Removal of crop residue to be subsidised in order to tackle the problem of pollution due to burning of crop residue:

 • Ujwala will give 8 crore women new LPG connections. 

• Special scheme to address air pollution in Delhi-NCR region.

 • Credit for agricultural activities is up from Rs 10 lakh crore to Rs 11 lakh crore . 

• Fishery and aquaculture and animal husbandry funds with a total corpus of Rs 10,000 crore.

 • Agri-Market Development Fund with a corpus of Rs 2000 crore to be set up for developing agricultural markets. 

• Restructured National Bamboo Mission to be launched with an allocation of Rs 1290 crore to promote bamboo sector in a holistic manner.

 • Grameen Agricultural Market (GRAM) will provide farmers a means to sell directly to buyers.

 • Rs 500 crore announced for Operation Green.

 • Allocation to food processing ministry is being doubled from Rs 715 crore to Rs 1400 crore. 

• Cluster-model approach to be adopted for agricultural production. 

• The focus is on low-cost farming, higher MSP. Emphasis is on generating farm and non-farm employment for farmers. 

• 470 APMCs have been connected to eNAM network, the rest to be connected by March 2018... Agri-Market Development Fund with a corpus of 2000 crore to be set up for developing agricultural markets 

• Desh mein krishi utpadan record star par hai, 2022 tak kisaano ki aay dugni karenge. 

• Agri-related stocks gain after it is said MSP for all crops to be increased by 1.5 times. Kaveri Seeds Co Ltd rose 2.4%, Jain Irrigation Systems Ltd 2.1%, Escorst Ltd rose 5%, Mahindra & Mahindra Ltd rose 2.2%. 

• The government will ensure payment of full MSP even if farmers sell below MSP. 

• The Minimum Support Price of all crops shall be increased to at least 1.5 times that of the production cost.

 • Our government has ensured that services and benefits reach people directly. The direct benefit transfer in India is the biggest such exercise in the world. 

• Maximum governance, minimum government has ensured India has climbed 42 places in the ease of doing business... We are now working toward easing of living in India 

• Budget 2018 will focus on agriculture and rural economy, health, infra, senior citizens: FM

 • This year’s budget will focus on strengthening rural and agricultural economy. 

• India grew at an average of 7.5% in the first three years since 2014. It is now a 2.5 trillion dollar economy. 

• All the structural reforms will help the economy in the short and longterm... India is expected to become the fifth largest economy very soon.

 • Our government has implemented structural reforms.

 • India stands out as the fastest growing economy in the world... There is a premium on honesty.

 • Finance minister Arun Jaitley begins his Budget speech.

MORE WILL UPDATE SOON!!