Friday, 1 February 2019

Budget 2019 Benefits - Impacted Sectors and Stocks to Invest in 2019

Posted by RaviKumar Nama
(Published on 02-Feb-2019)
Finance Minister Piyush Goyal presented the interim Union Budget 2019 in Lok Sabha on Friday, 01-Feb-2019. Government has announced some financial benefits to the farmers, Middle-class tax payers and the un-organized labours. As this is the last budget for the existing Government, they mainly focused on the large coverage of voters, hence the Opposition parties claiming this is not the Budget but the Manifesto. Based on the Budget 2019 highlights, I have analyzed what are the impacted sectors and stocks which will benefit most out of this Budget.

Budget 2019 Benefits and Impacted Sectors & Stocks:

1. Pradhan Mantri Kisan Yojana:

Benefit: Rs. 6000 per year to the farmers
Impacted Sectors: FMCG
Impacted Stocks: ITC, HUL, Marico and Dabur

2. Defence:

Benefit: Allocation of 3.05 Lakh crores
Impacted Sectors: Defence
Impacted Stocks: BEL, BEML, Bharat Dynamics

3. Real Estate:

Benefit: No TDS on House rents up to 2.4 Lakhs per Annum
Impacted Sectors: Real Estate, Cement, Paints
Impacted Stocks: HDFC, LICHFC, Gruh Finance, Nerolac, Asian Paints, ACC, Ultratec

4. Education:

Benefit: Allocation of Rs. 38,572 crores to National Education Mission
Impacted Sectors: Education
Impacted Stocks: NIIT, GLearn, APTECH

5. Infrastructure:

Benefit: Sagarmala Project expansion
Impacted Sectors: Infrastructure & Construction
Impacted Stocks: L&T, Adani Ports, SIEMENS

6. Automobile:

Benefit: Preference to Electrical vahicles
Impacted Sectors: Automobile
Impacted Stocks: Maruti, M&M, Hind Motors

7. Entertainment:

Benefit: Single window for Film Making
Impacted Sectors: Media
Impacted Stocks: SunTV, ZEEL, PVR

8. Pradhanmantri Gram Sadak Yojana:

Benefits: Allocation of Rs.19000 crores
Impacted Sectors: Tranportation
Impacted Stocks: NCC, Dilip Buildcon, IRB

9. Rural:

Benefits: 
  • Swachch Bharat at Rural areas, 
  • Ujjval Yojana 
  • 2% interest subvention for farmers pursuing animal husbandry and also create separate department for fisheries.
  • 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment.
Impacted Sectors: Ceramics
Impacted Stocks: Kajaria, SERA, HSIL, Reliance, IOC, BPCL, HPCL, Avanti seeds

10. Pradhanmantri Kisan Saman Yojana:

Benefits: Allocation of Rs. 75000 crores to farmers
Impacted Sectors: Rural
Impacted Stocks: ESCORTS, VST Tillers, HMT

11. Ayushanbhava:

Benefits: Medical Facilitation of 10 lakh patients
Impacted Sectors: Pharma
Impacted Stocks: Apollo, FORTIS

12. Housing:

Benefits:
  • Exempt on tax on second self-occupied house
  • Recommendations to GST council for reducing GST rates for home buyers
  • Exempt on tax on second self-occupied house
  • Capital tax Benefit u/s 54 has increased from investment in one residential house to two residential houses.
Impacted Sectors: Real Estate
Impacted Stocks: DLF, Godrej Properties, Oberai Realty

13. Telecom:

Benefits: 
  • One lakh digital villages in next 5 years
  • Data usage increased by 50 times in 5 years
Impacted Sectors: Telecom
Impacted Stocks: Reliance, Bharti Airtel

Disclaimer:

This data is for Academic purpose only. The data published on this post is just my opinion based on my own research and analysis and is provided as a general market commentary. As it does not take into account of your personal circumstances, please do not invest based solely on this information. By Viewing any material or using the information within this post you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general information provided here.

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