Heard on the Street

Heard on the Street



Women’s Bill stand-off may hit Finance Bill

The events unfolding around Women’s Bill have given rise to fears of a deep-market correction among institutional investors.

Even if Mulayam Singh-led Samajwadi Party (SP) and the Lalu Yadav-led Rashtriya Janata Dal (JD) were to oppose the Bill, the government will be able to get it passed with BJP’s support. However, things would be difficult when the government comes up with the Finance Bill, which is up next in the Parliament proceedings’ list.

The government will find it very difficult to pass the Finance Bill without SP’s or RJD’s support. “A couple of defections from the UPA will force the government to seek a confidence vote from members. This will dampen the sentiment of the market. In such a situation, the market is likely to slip into a deep correction mode,” an institutional dealer said.

Block deal in Nifty April puts raises eyebrows

The huge build-up of positions in Nifty’s 4800 April puts last week, when the index was trading around the 5100-mark, has intrigued market participants. The position is stoking curiosity in the market, as almost 13-14 lakh units out of the existing 19.65 lakh units of open interest were built up in a single deal.

Market participants are anxious to know the intention behind the purchase of this contract. If the purchase is part of a volatility trade, the market participants would be relieved, but, if it is based on a directional view, then they have something to worry about.

According to market grapevine, the buyer of this contract is the US-based Golden Socks, and that the trade is part of a volatility strategy.

Fund managers spoilt for choice

It was a hectic day for fund managers with several blocks of shares to choose from. In addition to Daimler Chrysler’s offer for sale of Tata Motors shares, India Cement and battery maker Exide Industries were looking to raise funds through qualified institutional placements (QIPs).

India Cement is looking to raise around $48 million at a floor price of Rs 120.2, and an option to increase the issue size to $75 million. It is learnt that key investors in India Cement include Halbis, Bajaj Allianz and Templeton.

Exide Industries which is looking to raise around $110 million at Rs 108 has been subscribed almost three times. Key investors in Exide were Jupiter, which applied for three million shares, Kotak Mutual Fund (75 lakh shares) and Mirae and India Capital (20 lakh shares each). SBI Life and Reliance Life are learnt to have applied for shares worth Rs 80-100 crore, while Amansa is said to have applied for approximately shares worth Rs 50-60 crore.

(Contributed by Shailesh Menon, Nishanth Vasudevan & Apurv Gupta)


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• Top 5 picks of the day
• Mid-term picks of the day

Our plan superior to RIL bid: Lyondell

Govt looks to cut stake to let SBI hit D-Street

Infosys Technologies

Aries Agro

India Real Estate - Service Tax

JSW Steel

Daily News Roundup - March 9 2010

No Oscar performance here!

Escorts

Daily Newsletter - March 9 2010

Balkrishna Industries

India Strategy Report - March 8 2010

DQ Entertainment IPO Note

Src: ET and DP blog and Etc

Intermediate uptrend confirmed

Intermediate uptrend confirmed


The post-Budget bullishness continued after Holi. It appears the intermediate trend is headed north. The Nifty climbed to a high of 5,118 points before closing at 5,088.7 for a week-on-week gain of 3.38 per cent. The Sensex was up 3.44 per cent at 16,994 points. The Defty gained 4.4 per cent as the rupee strengthened to below Rs 45.80 to the dollar.

Breadth was solidly positive. There was a pickup in cash trading volumes. FIIs bought strongly, registering net purchases of over Rs 3,800 cr. However, domestic institutions were heavy sellers to the tune of over Rs 2,400 crore. Smaller stocks outperformed. The BSE 500 was up 3.94 per cent while the Midcaps gained over 6 per cent and the Nifty Junior was ahead by 5.6 per cent.

Outlook: The Nifty has now established rising lows and rising peaks to confirm a turnaround in the intermediate trend. However, it’s hitting resistance above 5,100, at around 5,125. In the short-term, it could consolidate by range-trading for several sessions between 5,000-5,150. There is a 10-session target of somewhere between 5,200-5,300.

Rationale: Institutional inclinations indicate that there will be further tussles at the current price between bulls and bears. Chart patterns indicate that the intermediate trend is up – there have been successive higher tops and bottoms. There is a lot of resistance at 5,100 plus and it will probably take buying from both sets of institutions to overcome.

Counter-view: The intermediate trend reversed after February 9 so, it’s been running up for roughly 4 weeks. It could be flattening and heading into another phase of extended range-trading, or even a downtrend. Sluggish momentum indicators and a flattening 200 Day Moving Average suggest that this is happening. A break out past 5,125, preferably past 5,150, would confirm a strong intermediate trend. Long traders could wait for that signal.

Bulls & Bears: Last week’s trading saw bulls cycling through several sectors, booking profits and moving on. IT underperformed and banks more or less matched the Nifty.

Automobiles, auto ancillaries, cement, power-equipment and sugar, went up in various sessions. In the banking sector, PSUs attracted more attention through most of the week but private banks did well on Friday. IT was buoyed by stronger performance from smaller stocks. Metals had a mixed performance with signs of weakness by the weekend.

Auto stocks such as Tata Motors and Hero Honda delivered outstanding returns. But by the weekend, there was a lot of profit booking and Maruti in particular, seemed weak.

Sugar saw the opposite seesaws as did real estate. Both sugar and real estate started weak and finished strong with several stocks in each sector showing promising chart patterns by the weekend. There were other winners scattered across various sectors. The more prominently bullish scrips included Suzlon, Petronet, Ambuja Cement, Essar Oil, Gujarat NRE and Gail.

MICRO TECHNICALS

Bank of Baroda
Current Price: Rs 594.75
Target Price: Rs 630

---

The stock has seen a jump followed by profit-booking, and another bounce from decent support. It should test resistance at Rs 630-Rs 635 again. Keep a stop at Rs 590 and go long. Increase the position between Rs 600-Rs 605 and reset the stop to Rs 600. Clear the position beyond Rs 630.

Petronet
Current Price: Rs 79.9
Target Price: Rs 85

---

The stock’s up on high volumes, clearing resistance just below current price. The projected target would be at least Rs 85, which would be a new high. There’s resistance at Rs 82- Rs 83. Keep a stop at Rs 77 and go long. Increase the position beyond Rs 83. At Rs 85, book 50 per cent profit and reset the stop to Rs 83 since there’s a good chance of reaching Rs 90.

Purvankara Projects
Current Price: Rs 109.9
Target Price: Rs 115

---

The stock has seen a sharp jump on higher volumes. It has the potential to test resistance at the minimum target of Rs 115. Keep a stop at Rs 105 and go long. Book at least 50 per cent profit at Rs 115 and reset the stop to Rs 112. Clear the position at Rs 120.

Shree Renuka Sugars
Current Price: Rs 181.3
Target Price: Rs 190

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Massive volumes ahead of the bonus have boosted prices. There’s resistance at the minimum target of 186, where the 200-Day Moving Average is hovering. Expect a move till Rs 190 or further, beyond Rs 200. Keep a stop at Rs 177 and go long. Add to the position above Rs 186. Book 75 per cent profit at Rs 190 and reset the stop to Rs 186.

Tata Motors
Current Price: Rs 794.25
Target Price: Rs 770

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The stock has strong volume action and shot up from Rs 720 to Rs 830 in just two sessions. It has since seen profit-booking. There’s good support at Rs 790 but Fibonacci calculations suggest a drop till secondary support at Rs 770. Keep a stop at Rs 800 and short. Increase the position below Rs 790. Clear the position between Rs 770- Rs 775.

(The target price and projected movements given above are in terms of the next five trading sessions unless otherwise stated.)

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Recovery optimism boosts Asian indices 08-MAR-10 Asian stocks rose for a second week, almost erasing the MSCI Asia Pacific Index’s losses this year, as reports on global semiconductor sales, Indian manufacturing and US jobless claims boosted optimism for an economic revival.

Analysts' corner 08-MAR-10 For the December 2009 quarter, Esab posted a 60 per cent year-on-year rise in net profit at Rs 14.7 crore as against Sharekhan’s estimate of Rs 11.4 crore.

High cash levels in Budget week 08-MAR-10 As the markets cheered the Budget, Smart Portfolios too raked in profits during the week.

Markets at a glance 08-MAR-10 The BSE Sensex surged 565 points or 3.4 per cent to 16,995 during the week, while Nifty rose 166.40 points or 3.4 per cent to 5,089.

Range trading with an upwards bias 08-MAR-10 High cash market volumes were not matched by similar volumes in the derivatives market.

Intermediate uptrend confirmed 08-MAR-10 The post-Budget bullishness continued after Holi.

Back on track 08-MAR-10 Volume and profitability growth in the December quarter is a sign of better times to come for the retail sector.

Costly bite 08-MAR-10 Higher input costs could keep Nestle’s profit margins under pressure in the short-term, but leadership across segments would act as a cushion.

Well crafted 08-MAR-10 Given the past track record, sound business model, robust order book and reasonable pricing, DQ Entertainment’s IPO is a worthy bet.

One-offs impact profits 08-MAR-10 An improving order backlog and economic climate should help ABB do better this year.

Success hinges on pricing 08-MAR-10 While NMDC's track record, vast resources and growth prospects are enviable, the government will need to ensure that the FPO is attractively priced.

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• Pre Market: Stocks to start higher on strong Asia
• MFs forced to sell shares as inflows dry up
• Analysts' Picks: D-Link, ITC, Tata Motors, SBI, NMDC

. Top 5 picks I Mid-term picks I

Crude glides up

Bulls run may continue

Daily News Roundup - March 8 2010

Trespassing 5100!

Monthly Technicals - March 8 2010

Jain Irrigation

Adhunik Metaliks

Mphasis

Tata Motors Ltd

Hawkins Cookers

VGuard Industries

India Utilities

Infinite Computer Solutions

and DP blog
Src: ET and BS

Pivot Table

Interactive Ajaxorized Pivot Table

Src: Marketcalls.in

RIL may lose Lyondell bid, eye Canada company

RIL may lose Lyondell bid, eye Canada company



MUMBAI: Reliance Industries (RIL) is on the verge of losing its bid for bankrupt petrochemical company LyondellBasell, as it baulks at rising

Gang of Five behind RIL’s LyondellBasell bid Full Coverage: RIL's LyondellBasell bid RIL

valuation due to the recovering global economy, but that may help it focus on the possible acquisition of Canada’s Value Creation.

The bid by the nation’s largest private sector company, which was raised 21% to about $14.5 billion from the initial $12 billion in November, may not be acceptable to creditors who are leaning towards the revival plan proposed by the current management, two people familiar with the matter said.

“It is proving to be expensive,” said a person close to the deal preferring anonymity. “Lyondell’s reorganisation plan to be filed with the US bankruptcy court in Manhattan on Monday will influence the final decision,” the person added. The plan may be filed midnight India time. An RIL spokesperson declined comment.

Lyondell’s creditors, led by buyout firm Apollo Management, is set to reject the plan by RIL in Monday’s proposal, the New York Post reported on its website. The plan to be filed is set to favour the merger of Lyondell with Hexion Specialty Chemicals controlled by Apollo, the report said.

RIL has raised about $2 billion selling its own shares from the vault between November and now to possibly bid for Lyondell. It still has shares worth about $7 billion for which it has not publicly spelt out a strategy. RIL has time to raise its bid. But given its past record of seeking value in all its purchases, it may not raise the bid. The company had said in November that it was interested in buying a controlling stake in Lyondell, but it never officially disclosed how much it was valuing the target at.

Also Read

→ Running empty, oil ministry may opt for partial freeing of prices

→ We want to boost energy ties with Saudi Arabia: PM

→ Venezuelan oil co may buy stake in ONGC-MRPL

→ Every time you tank up at gas station, govt gets richer

The treasury stocks were created eight years ago, following the merger of Reliance Petroleum, a subsidiary, with RIL. While holdings of promoter companies get cancelled in these circumstances normally, RIL chose to retain them in a trust which are being sold now.

“Reliance is a value buyer,” the New York Post report quoted Telly Zachariades, partner of the Valence Group investment bank, as saying. “He’s (Mukesh Ambani) is not the kind of person to get caught up in deal frenzy.”

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Stocks to open higher in line with strong Asia

Top five picks | Mid-term Picks | Top gainers, losers, recommendations

Budget winners: Oil & gas, banking and consumers

Great Offshore seems an attractive buy for long term

Daily News Roundup - March 2 2010

Decent start after a Holi-day!

ITC Ltd

Amtek Auto

Tata Motors

Budget Special - March 2 2010

Union Budget Review - March 2 2010

Blue Star

Src: ET, DP blog

Check out the post-Budget winning potential of 42 mid-cap stocks

Check out the post-Budget winning potential of 42 mid-cap stocks

ET Bureau

Mid-caps are a minefield where investors have burnt their fingers, but they’re also a club where one can spot tomorrow’s winners. Suddenly automobile, mid-sized banks, and construction & engineering companies have become the new flavours. ETIG brings you a list of 42 such mid-caps.

ET has picked stocks with a market capitalisation between Rs 2,000 crore and Rs 10,000 crore, based on the average market cap for January 10. The final 42 have been selected keeping in mind the sectoral representation, and parameters like daily exchange turnover, price earning ratio, dividend yield and beta (which reflects a stock’s volatility).

Following are the details of the 42 mid-cap stocks:

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History

OUTLOOK: POSITIVE

NEXT

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Mkts: Sharp movements to be sector-specific

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Market intriguingly poised post-Budget

The Budget was well-received but the initial enthusiasm was dampened by selling in the latter part of the session. The Nifty hit a high of 4,992 points before falling back to close at 4,922 for a week- on-week gain of 1.6 per cent. The Sensex was up 1.47 per cent at 16,429 points. The Defty gained 2.1 per cent as the rupee continued to harden.

Breadth was fairly good though smaller stocks underperformed the pivotals. The BSE 500 was up 0.9 per cent and the Midcaps actually lost around 0.8 per cent. Volumes were strong on Thursday and Friday - not surprising given that settlement was followed immediately by the Budget. Domestic institutions were net sellers for the second week in succession while FIIs bought in moderate quantities.

Outlook: Market direction is still not very clear. The resistance at 5,000 was not conquered. However, the intermediate trend seems to have changed for the better. There have been successive higher peaks and support along a positive-looking trendline. The short-term trend could well be negative early next week if the sentiment of the last hour on Friday doesn't alter over the extended weekend.

Rationale: The market could open with a large gap in either direction on Tuesday since the fine print of the Budget will have been absorbed by then. The Nifty's trendline has looked positive since the last low of 4,675 on February 8. Higher peaks have been established at 4,951 (February 2) and 4,882 (February 26) - the second high came due to the Budget. On the upside, a break and close above 5,000 would be positive. On the downside, support above 4,800 should hold.

Counter-view: There are distinct chances of a negative swing early next week, given weak short-term signals on Friday, an apparently negative reaction to the Budget from domestic institutions and weakness overseas. The latter factor is imponderable but traders will get a clearer picture from overseas markets on Holi. If things get worse, the Nifty could take a bath on Tuesday. In that case, the benchmark support for the intermediate trend would be 4,675.

Bulls & bears: IT was the only industry to see major sell-offs on Friday though the CNXIT was up 0.9 per cent on the week. ITC also lost serious ground. Real estate stocks got a mixed reaction with several majors such as Unitech and DLF gaining while Indiabulls Real Estate lost a lot of ground. Energy stocks also saw mixed responses with OMCs and refiners losing ground while ONGC and Cairns gained.

Most other industries saw positive gains across the board though these were pared late in the day. Listed auto majors all registered major gains. Finance was another industry with big gains, especially across NBFCs and PSU banks. The Bank Nifty was up 2.8 per cent. Engineering and construction stocks like Larsen and GMR Infra saw strong buying. Metals and cement also saw bullishness as did pharma.

MICRO TECHNICALS

LARSEN & TOUBRO
Current Price: Rs 1,564.3
Target Price: Rs 1,650

The priceline has just completed a bullish saucer formation with a projected target in the range of Rs 1,650- Rs 1,670. There is also resistance in that zone. Keep a stop at Rs 1,550 and go long. Add to the position beyond Rs 1,580 and clear it at Rs 1,650.

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HERO HONDA
Current Price: Rs 1,777
Target Price: Rs 1,900

The stock hit a new high on strong volumes. The projected target is Rs 1880- Rs 1900 but error margins are large due to the stock being in a new zone. Keep a trailing stop at Rs 1,750 and go long. Increase the position above Rs 1,800. Reset the stop upwards by Rs 25 for every 25-point move.

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IDFC
Current Price: Rs 159.6
Target Price: Rs 167

The stock jumped on massive volume. It has sufficient momentum to test resistance at Rs 167 and it may go further. Keep a stop at Rs 156 and go long. Add to the position above Rs 161. Book 50 per cent profit at Rs 167 and reset the stop to Rs 165.

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SESA GOA
Current Price: Rs 400.35
Target Price: Rs 415

The stock has shot up on high volumes. It's likely to move until the Rs 415- Rs 420 level before running into heavy resistance. Keep a stop at Rs 395 and go long. Start booking profits above Rs 415. But note that if Sesa Goa closes above Rs 420, it could run until Rs 440.

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MOSER BAER
Current Price: Rs 75.85
Target Price: Rs 81

The stock jumped from its 2010 low on very high volume. Too early to say if this is a long-term trend reversal or a technical recovery. However, there's enough momentum to go to Rs 81- Rs 82. Keep a stop at Rs 73 and go long. Book profits above Rs 81.

High cash levels in Budget week 01-MAR-10 Uncertainty ahead of multiple events - Railway Budget, Economic Survey, derivatives expiry and the Union Budget saw fund managers get defensive and raise cash levels.

Analysts' corner 01-MAR-10 Tata Motors (TML) is expected to report a consolidated profit of Rs 130 crore for Q3FY10, its first since the JLR acquisition.

Sweet deal 01-MAR-10 The move to acquire Equipav will benefit Shree Renuka Sugars in the long run through backward integration and economies of scale.

Market intriguingly poised post-Budget 01-MAR-10 The Budget was well-received but the initial enthusiasm was dampened by selling in the latter part of the session.

Focus on the index 01-MAR-10 One cited cause for the downtrend was weak US economic data.

Tackling event risk 01-MAR-10 Performance cycles can harness event risk such as the Budget and offer an alternative strategy.

Please-all 01-MAR-10 Even as the Union Budget 2010-11 was largely in line with expectations, the markets rejoiced with the Sensex and Nifty closing higher by about a per cent each on Friday.

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Budget Analysis and Review - March 1 2010

Budget Report - March 1 2010

Budget Analysis - March 1 2010

Budget Highlights

Post Budget Report - March 1 2010

Weekly Newsletter - March 1 2010

Elgi Equipments

Mahindra Holidays and Resorts

IndusInd Bank

Piramal Healthcare

Src: ET, Business-Standard, DP Blog and etc

What does Budget 2010 hold for D-St's blue chips?

What does Budget 2010 hold for D-St's blue chips?

ET Bureau

The day traders may have played their game, but for millions of investors, it’s now time to sit back and read between Pranab babu’s lines. Maybe you need to take another look at your portfolio, tweak things around a bit. With service tax on rail freight, higher MAT and the partial rollback of stimulus, it will take a while to figure out whether the Budget is as friendly as it appears.

To make life a little easier, and give you an idea of what’s hot, ET, in association with ICICIdirect — an arm of ICICI Bank — gives you a sense of how the Budget will impact the fortunes of the 30 Sensex companies. We have identified the winners, the losers, and the also-rans. This, we hope, will keep you streets ahead in a world that’s full of surprises. So, read on...

ACC Ltd 27 Feb 2010, 0647 hrs IST

Print Save EMail Write to Editor

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Recommendation: Sell The excise duty hike of 2% will be partially passed on to consumers. This will account for Rs 2-3/50-kg bag. However, the expected glut in the South will put pressure on pricing in CY10E. Thus, despite the 10% volume growth & rise in demand on account of infra spending, we expect the bottomline to fall 31% in CY10E.

More @ http://economictimes.indiatimes.com/articleshowpics/5622841.cms

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Fiscal consolidation vital to sustain future growth: Mark Mobius

What's cheaper/costlier after Budget 2010

Petrol, diesel turn costlier

FIIs lead market cheer

Pranab takes more than he gives

More private banks on the cards

Excise duty to pinch India Inc?

What's in it for you?

FM has fooled all experts

Bitter pill for drug makers

IT cos unhappy over MAT rate hike to 18%

IT cos unhappy over MAT rate hike to 18%

Tax slabs revised, more money in your hands

FM Pranab Mukherjee sprang a pleasant surprise on personal income-tax payers. Impact for resident individuals | Resident women below 65 | Senior citizens

Budget Speech

Finance Bill

Budget 2010 articles from Business-standard


Src: All Leading Websources.

BUDGET 2010 Highlights

Budget Special Highlights - 2010-2011

Highlights

• Service tax to result in net revenue gain of Rs 3000 cr
• Customs duty on silver at Rs 1500/kg
• Custom duty on gold to be reduced
• Mobile phones to be cheaper
• No capital gains tax on conversion of a business entity into Limited Liability Partnership
• To encourage manufacture of accessories such as battery chargers and hands-free sets, the concessions will be extended the mobile phone sector
• 5% customs duty on crude petroleum back
• Peak customs duty unchanged at 10%
• FM raises central excise duty on all non-petroleum products from 8 to 10 per cent
• Revenue loss of Rs 26,000 crore on direct tax proposals
• Stimulus-led excise duty rollback partially reversed
• FM allows housing projects to complete projects in 5 years instead of 4 years to avail tax break
• One-time interim relief to housing and real estate sector
• Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations of their accounts
• Uproar in Parliament over petrol price rise
• To levy excise duty of Re 1/litre on petrol
• New tax rates would offer relief to 60 per cent of tax-payers
• CET on petroproducts hiked by Re 1
• Direct tax receipts to fall by Rs 56,000 cr
• Standard excise rate up from 8 to 10%
• Large cars, SUVs excise up to 22% from 20%
• Sops for real estate, housing projects extended by a year
• Partial roll back the rate reduction in central excise
• Direct tax scheme to result in revenue loss of Rs 26,000 cr
• Compliance burden reduced on professionals and entrepreneurs
• Corporate tax surcharge down from 10 to 7.5%
• New income tax slabs will bring relief to the middle class
• Rs 20,000 additional tax break for infra bonds
• Minimum Alternate Tax hiked to 18%
• R&D allocation increased 200%
• To unveil new Saral 2 form for salaried individuals in two pages
• Deduction of additional 10% for investment on infrastructure bonds
• Tax slabs: Broadening 1.6 lakh - Nil above 1.6 lakh-up to 5 lakh 10%
• 5-8 lakh- 20% above 8 lakh- 30%
• Tax paying interface to be de-cluttered
• States to be offered assistance to computerise commercial taxes
• Greater transparency in tax administration targeted
• Centralized Tax Centre at Bengaluru fully functional
• Fiscal deficit at 5.5% for FY'11
• Rolling target for fiscal deficit 4.2%
• Gross tax receipts at Rs 7.46 lakh cr
• New symbol for Indian Rupee
• Tech advisor group under Nandan Nilekani
• Allocation for development of micro and small scale sector raised from Rs 1,794 cr to Rs 2,400 cr
• Rs 2,600 cr for Minority Affairs Ministry
• To create 50 cr skilled workers by 2022
• Rs 1,900 cr to UID authority allocated
• First set of UID to be issued by this year
• Rs 19,484 cr allocated for road development, to build 20 km of highway every day
• Subsidy for affordable housing extended
• Skill development programme for textile and garment sector
• Pvt sector to meet deficit in grain storage
• 50% increase in women & child development allocation
• Development of rural infra remains high priority area
• Power sector allocation doubled to Rs 5130 cr
• Rs 400 cr corpus for micro-finance scheme
• National pension scheme allocation increased
• States to get Rs 3,675 crore for primary education at rural level
• Rs 400 cr corpus for micro-finance scheme
• NREGA allocation to Rs 40,100 crore
• National Social Security fund to be set up for unorganized sector
• Urban Development allocation to be raised by 75 per cent
• 20,000 mw of solar power by 2022
• Rural development allocation to Rs 61,000 cr
• Indira Awaas Yojana allocation raised in proportion to plain and hill area housing
• Development of rural infra remains high priority area
• Social sector spending at Rs 1.38 lakh cr for FY11
• Rs 500 cr for Clean Ganga Mission
• Rs 66, 100 cr for rural development in FY10-11
• Allocation for school education up from Rs 26, 800 crore to Rs 31, 036 cr
• Rs 22, 300 crore allocated for Health Ministry
• Coal regulatory authority proposed
• Rs 300 cr for Rashtriya Krishi Vikas Yojana
• Bank farm loan target: Rs 3.75 lakh crore
• Rs 200 cr To Tamil Nadu for textiles
• Need to take firm view on opening up of the retail sector
• National clean Energy Fund to be set up
• Rs 200 crore to Goa as a special golden jubilee package to restore beaches and increase green cover
• To provide 2% loan subsidy to farmers
• Extend loan payment by calamity hit farmers
• Rs 400cr for four-part strategy for agriculture
• 2% interest subvention for exports extended
• Additional banking licenses for pvt players
• 4 pronged strategy for agriculture
• Rs 16,500 cr capital support for PSU banks
• Will consider Parikh report on fuel pricing
• Goods and services tax to be introduced in 2011
• Fertiliser subsidy to be reduced
• GDP growth for FY'10 is seen at 7.2 pc
• Rs 25,000 cr disinvestment target this year
• India weathered economic crisis well
• Direct tax code to be implemented from April 1, 2011
• Gradual phasing out of economic stimulus
• Pvt investment can sustain 9 pc growth
• First challenge: Return to GDP growth
• Manufacturing growth highest in the past 2 years
• Indian economy is in a far better position today
• FM is expected to simplify tax laws in 2010
• Biggest challenge is to make the growth all inclusive
• Need to strengthen food security
• Pranab: Indian economy has stood through the test of time
• Economic growth slows down to 6 pc in Q3
• Finance Minister presents Budget 2010
• Pranab Mukherjee presents his 5th Union Budget
• Finance Minister Pranab Mukherjee reaches Parliament
• Inflation is forecast to reach 10 percent in coming weeks
• Government borrowing was forecast to rise by another 2.2 percent
• Economists forecast India may cut its fiscal deposit to 5.6% of GDP

Taxes

• More services to be brought under service tax net
• Service tax to result in net revenue gain of Rs 3000cr
• Customs duty on gold to be reduced; silver at Rs 1500/kg
• Uniform concessional duty of 5% on all medical appliances
• Rationalising of customs on gaming software
• Custom duty of one of the key component of microwave oven reduced
• Peak customs duty unchanged at 10%
• Custom duty for importing of duplication of prints of films revised
• No capital gains tax on conversion of a business entity into Limited Liability Partnership
• Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations
• Nominal duty of 4% electric cars
• Partial rollback of excise duty on cement, cement products, large cars
• To levy excise duty of Re 1/litre on petrol
• R&D Corp Tax break up to 200%
• Direct tax receipts to fall by Rs 56,000 cr
• Pilot project for tax grievances extended to 4 cities
• Direct tax scheme to result in revenue loss of Rs 26,000cr
• Corporate tax surcharge down from 10 to 7.5%
• Rs 20,000 additional tax break for infra bonds
• Corp Min Alternate Tax up from 15 to 18%
• New tax rates would offer relief to 60 per cent of tax-payers
• Direct tax slabs: income upto 1.6 lakh = nil, 1.6-5 lakh = 10%, 5-8 lakh = 20%, above 8 lakh = 30%
• Centralized Tax Centre at Bengaluru fully functional
• Gross tax receipts Rs 7.46 lakh crore
• Deferment of goods & service tax negative for corporates in FY10-11
• Direct tax to be implemented from April 1, 2011
• Simple tax system with minimum exemptions near completion
• Indirect taxes will continue to be in focus
• Excise duty, service tax may go up by 2%

Prices

• More services to be brought under service tax net
• Service tax to result in net revenue gain of Rs 3000cr
• Customs duty on gold to be reduced; silver at Rs 1500/kg
• Uniform concessional duty of 5% on all medical appliances
• Rationalising of customs on gaming software
• Custom duty of one of the key component of microwave oven reduced
• Peak customs duty unchanged at 10%
• Custom duty for importing of duplication of prints of films revised
• No capital gains tax on conversion of a business entity into Limited Liability Partnership
• Businesses up to Rs 60 lakh and professionals up to Rs 15 lakh to be exempted from auditing obligations
• Nominal duty of 4% electric cars
• Partial rollback of excise duty on cement, cement products, large cars
• To levy excise duty of Re 1/litre on petrol
• R&D Corp Tax break up to 200%
• Direct tax receipts to fall by Rs 56,000 cr
• Pilot project for tax grievances extended to 4 cities
• Direct tax scheme to result in revenue loss of Rs 26,000cr
• Corporate tax surcharge down from 10 to 7.5%
• Rs 20,000 additional tax break for infra bonds
• Corp Min Alternate Tax up from 15 to 18%
• New tax rates would offer relief to 60 per cent of tax-payers
• Direct tax slabs: income upto 1.6 lakh = nil, 1.6-5 lakh = 10%, 5-8 lakh = 20%,
• above 8 lakh = 30%
• Centralized Tax Centre at Bengaluru fully functional
• Gross tax receipts Rs 7.46 lakh crore
• Deferment of goods & service tax negative for corporates in FY10-11
• Direct tax to be implemented from April 1, 2011
• Simple tax system with minimum exemptions near completion
• Indirect taxes will continue to be in focus
• Excise duty, service tax may go up by 2%

Full Speech - Budget - 2010-2011

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India Budget Strategy - Feb 26 2010

Budget 2010-2011

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Market gives thumbs up to Budget

FM revises tax slabs 26 Feb 2010, 1220 hrs IST Giving a relief to the middle class Pranab Mukherjee revised the tax slabs for the next fiscal. Income Tax Ready Reckoner

FM slaps excise duty of Re 1/l on petrol, diesel 26 Feb 2010, 1233 hrs IST The FM has slapped an excise duty of Re1/l on petrol and diesel. This has led to a ruckus in the parliament.

Middle of road Budget, 6 out of 10: Swaminathan Aiyar 26 Feb 2010, 1324 hrs IST The ways in which FM has cut the deficit down to 5.5% is expenditure compression, especially non-plan expenditure with only a 6% increase (adjusted for inflation) is hardly anything.

Rise in MAT to impact software firms 26 Feb 2010, 1448 hrs IST Small and mid-size outsourcing companies function from STPI units and tax benefits under the STPI scheme are getting phased out in 2010-11.

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Market gives thumbs up to Budget


MUMBAI: The market was pleased with Finance Minister’s Budget speech driving equity benchmarks sharply higher in afternoon

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Speaking in parliament, Pranab Mukjerjee said he had laid down a road map for reducing the country's fiscal deficit, which soared to a 16-year high of 6.9 per cent of economic output.

The shortfall would drop to 5.5 per cent in the next fiscal year to March 2011, and then 4.8 per cent in the following 12 months, though there would be no let up in the left-leaning government's focus on huge social programmes.

The Finance Minister also slapped an excise duty of Re 1 per litre on petrol and diesel. This has led to a ruckus in the parliament as the move would accentuate inflationary situation in the country. Some opposition members walked out of the house in protest.

National Stock Exchange’s Nifty surged 2.28 per cent or 110.75 points to 4970.50from its previous close. The index touched a high of 4992 during the course of the Budget proceedings after opening at a low of 4858.45.

Bombay Stock Exchange’s Sensex was at 16,604.95, higher by 350.75 points or 2.16 per cent. The index rose to a high of 16,669.25 from a low of 16,249.67.

The broader market also participated in the rally. The BSE Midcap Index surged 2.06 per cent and BSE Smallcap Index gained 1.65 per cent.

Sectorwise, the BSE Auto Index advanced 3.99 per cent, followed by BSE Realty which gained 3.71 per cent. BSE Bankex rallied 3.09 per cent and BSE Metal Index rose 2.89 per cent. The BSE IT Index, marginally down 0.25 per cent, was the lone laggard.

Biggest Nifty gainers were Reliance Capital (11.19%), IDFC (7.4%), DLF (7.29%), Tata Motors (5.71%) and Unitech (5.26%).

Tata Power (-4.34%), Ranbaxy Laboratories (-2.6%), HCL Technologies (-1.65%), BPCL (-0.57%) and Infosys Technologies (-0.47%) were trading with losses.

Market breadth on BSE was extremely positive with 1913 advances against 768 declines.

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Sensex cheers Union Budget 2010; auto, metals, banks lead

The benchmark Sensex salutes Union Budget 2010 unveiled by Finance Minister Pranab Mukherjee and rallied over 400 points during the day. Experts say it was a effect of short covering and positive reaction to budget. Technical Analyst, Ashwani Gujral said it’s just a short covering, so those who are long should exit. However, he feels impact of budget is over and the markets will react to the global cues.

Samir Arora of Helios Capital said the markets rallied due to low expectations from the budget. The markets will get back to global cues next week, he says.

The Nifty closed above the 4900 mark but the sell-off and profit booking in ITC on hike in excise, BHEL, Tata Power, TCS, Infosys and ABB erased more than 50% gains from day's high. Even heavyweights came off their day's high on profit booking at higher levels. It seemed that the markets discouted the budget.

Pranab Mukherjee in his second budget announced some positives like gradual reduction in fiscal deficit, cut in surcharge, more allocation for infrastructure development, increase in FY11 divestment target, increase in personal tax slab to Rs 8 lakh etc, which all these pushed the Nifty above 4950 level during the day. However, there were some negatives like hike in excise duties etc.

FM has increased tax slabs for Aam Adami, so that spending will increase. For income upto Rs 1.60 lakh, there will be no tax while there will be 10% tad for income between Rs 1.60 lakh to Rs 5 lakh; 20% tax for income between Rs 5 lakh to Rs 8 lakh and for income above Rs 8 lakh, there will be tax of 30%.

This will result into an increase in the disposable income of individuals and will boost the spending on necessary as well as luxury goods. Homi P Ranina, Tax Expert, says increase in the exemption limits is on expected lines. According to him, a person earning up to Rs 8 lakh will save Rs 54,000 a year by way of taxes.

The 30-share BSE Sensex closed at 16438, up 184 points and the Nifty was at 4922, up 62 points, as per provisional data. The Nifty March Future was trading with 14 points premium.

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Highlights of 2010/11 budget presented

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What's cheaper/costlier after Budget 2010

Pranab cracks it: FY11 fiscal deficit pegged at 5.5%

http://www.moneycontrol.com/budget2010/FM_speech/news_listing.php

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Budget speech (2010-11): Full text

Full text of Pranab Mukherjee's Budget 2010-11 speech‎ -

http://beta.thehindu.com/business/Economy/article113901.ece
‎

More @

http://budget.moneycontrol.com/


http://economictimes.indiatimes.com/unionbudget10.cms

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