Budget Highlights 2007

• Ambit Capital
  
  Agri investment to go up by +2% of GDP
  Irrigation focus to benefit Kirloskar Bros
  Education thrust to benefit paper & stationery cos; +ve for BILT, Navneet , Camlin
  Rural thrust to benefit Infra, Irri, Power;+ve for IVRCL, Jain Irrigation
  Education sector focus to benefit NIIT, Aptech, Educomp & Prithvi Info
  Rural focus will benefit SBI, PNB, BOI for agri advances
  Immunisation prog +ve for Wockhardt, Panacea Biotech
  Farm sector focus +ve for tractor cos - M&M, Punjab tractors, Escorts
  Agri focus +ve for Monsanto, Rallis, Bayer Crop, JK Agritech
  Irrigation thrust to benefit Jain Irri, Finolex pipes
  APDRP +ve for Jyoti, KEC Int'l, Kalptaru
  Ultra Mega Power Projects +ve for BHEL, Alstom, Siemens, ABB
  UMPP also +ve for PFC
  Increased outlay to NHDP +ve for L&T, Gammon, HCC
  CBM projs benefits Shiv Vani, ONGC
  TUF extension to benefit textile sector
  Higher tourism allocation to benefit Hotels, Pvt. Airports
  More branches for RRBs Positive for PSU Banks
  Short selling allowed for inst will improve liquidity in the mkts
  Higher defence exp to benefit BEL, BEML, L&T, Dynamatic Tech, AstraMicro
  Increased focus on PPP to benefit construction cos
  E-governance thrust benefits Vakrangee, 3i Infotech, TCS
  Rural telephony to benefit Rel Com, Bharti Airtel
  Fiscal deficit of 3.3% to ease pressure on interest rates
  Reduction of peak import duties to benefit Capital goods cos
  Customs on man-made fibre reduced from 16 to 8%
  TUF continuation to benefit textiles, +ve for SRF
  RSM: concession rate of 5% to all research units
  CVD on aircrafts incl helicops negative for Global Vectra, Air Deccan, SpiceJet
  RSM: no change in service tax rate
  Excise duty on petrol & diesel reduced, +ve for Oil Mktg Cos & economy in general
  Excise duty on footwear reduced, +ve for Bata, Liberty, Mirza Tanners
  RSM: Excise on cigarettes increased by 5%
  RSM: service tax exemption increased to 8,00,000
  ITC to marginally impacted by excise hike
  Service tax net widened, includes individual PMS services
  RSM Infrastructure status for Gas Pipeline & Storage Facilities & Navigation schemes
  Section 80 IA benefit extended to ppeline cos, very +ve for PSL, JSAW, Man Industries, GAIL, GSPL, IGL
  Diamond Mfg & trd deemed income taxation introduced
  RSM: Benign assessment procedure for gems industry
  Hotel & Conventions centres to get tax benefit
  Tax holiday for new hotels, +ve for Parsvnath, Anant Raj
  MAT introduction negative for software cos
  MAT levy on exempt Dividend & Cap Gain income for corporates
  Cap Gains Exemption for NHAI & REC bonds to continue
  Increase in dividend distribution tax -ve for corporates/MFs
  FBT exemption for Free Samples; to benefit corporates
  ESOP SUBJECT TO FBT
  Corporate Headline Tax Rate 33.99%
  Additional education cess of 1% to hit corporate earnings
  ATF exemption on smaller aircrafts to benefit Air Deccan
  Budget -ve for IT & Cement cos
  RSM: Tax deduction for housing projects not extended
  Housing Companies Exemption lapses
  Budget +ve for pipeline cos, cap goods, oil mktg cos, infra, FMCG & textiles
  Service tax exemption on clinical trials, +ve for DRL, Ranbaxy
  RSM: service tax on commercial rentals
  SEZ benefit restricted to new units; trf of exst bus not eligible
  
• CNBC-TV18
  
  Healthcare allocation increased; +ve Max India, Apollo Hospitals
  More focus on HIV eradication; +ve MNC Pharma, Cipla, Wockhardt
  Education allocation increased; +ve Educomp, NIIT, APTECH
  Healthcare allocation increased; +ve Max India, Apollo Hospitals
  Focus on HIV eradication; +ve for MNC Pharma cos like Novartis
  More allocation to self house groups; +ve ICICI Bank
  Higher Allocation for roads; +ve IVRCL, HCC, Gammon, Nagarjuna
  More agri focus spending; +ve ITC
  Higher Agri Focus; +ve Ruchi Soya, Agro Dutch, Agro Tech
  Higher farm lending; +ve for all PSU banks
  Higher agri focus; + Ve fertiliser & pesticide co
  More Irrigation projects; +ve pipe for cos esp PSL
  IT spending on Food corporation on India; Focus - TCS, CMC
  Seven more UMPP under process; focus: NTPC, Lanco, GMR, REL Ener, Tata Power
  Seven more UMPP under process; Focus - PFC
  Higher outlay under NHDP; +ve IVRCL, HCC, Gammon, Nagarjuna
  Higher Outlay for road infrastructure; + ve cement and CV players
  Seven more UMPP's to be awarded; +ve Electric Eq suppliers
  Higher outlay for TUF; + ve Lakshmi Machine Works
  Higher outlay for TUF; + ve Gokaldas, Arvind Mills
  Higher outlay for TUF; + ve textile cos
  Higher tourism allocation; + ve TFCI
  New mortgage guarantees/instruments to be introduced; + ve HDFC, HDFC Bank, Dewan Housing, LIC
  New mechanism for unlocking value thru exchangeable bonds against subsidiaries by group cos; Focus - Tata Motors, M&M, Bharat Forge, CESC, Bajaj Auto
  Allocation to defence increased; + ve BEL, Nelco, Astra, Avantel, CMC, Zen Technologies
  Higher e-Governance Spend; Focus CMC, ICSA, Wipro, 3i Infotech, TCS, Vakrangee Software
  PHASE OUT OF CST; PREPARE ROADMAP FOR INTRODUCTION OF GST BY 2010; + ve INDIA INC
  ON COURSE TO ACHIEVE FRBM TARGETS, + VE INDIA INC, MKTS
  PEAK CUSTOMS DUTY CUT ( Non Agri); + ve INDIA INC
  Customs duty on PTA, MEG Cut; + ve RIL, IPCL, INDO RAMA
  Cut in customs duty on Gem stones; + ve Vaibhav Gems, Gitanjali Gems
  Custom reduced on medical equipment to 7.5%; + ve Apollo Hospitals, Max India
  Customs duty cut on man-made fibre; + ve RIL, Indo Rama
  NO INCREASE IN SERVICE TAX; + ve INDIA INC, Indian Consumer
  Excise duty cut in Diesel & Petrol from 8% to 6%; + ve HP, BP, IOC
  Duty cut on water carriage pipes; + ve PSL, Ratnamani, Finolex Pipes
  Increase in excise duty for cement prices above Rs.190 per bag; -ve ACC, Guj Amb, Shree Cements
  NO CHANGE IN CORP TAX; - ve India Inc
  Infrastructure status for Gas Pipeline; Positive GAIL, CAIRN, RIL, GSPL
  Cut in service tax on Clinical trials; + ve Biocon
  MAT definition tweaked
  Tax Benefits extended for 5 more years; + ve Pharma & Auto co's
  IT/ITES sector to come under MAT: to pay 11.22% of adjusted Book profits; - ve IT industry - Infosys, TCS, Wipro
  150% weighted deduction extention ;+ve for pharma sector Sun Pharma, Ranbaxy, Dr reddys
  Dividend Distribution Tax hiked; - ve for high dividend payers - ONGC, NTPC, IOC, RIL
  Esops to be brought under FBT; - ve Tech, Media cos
  Dividend Distribution Tax increased; - ve Mf's
  Rent on Commercial properties; - ve Unitech, Mah Gesco
  EFFECTIVE TAX RATE UP FROM 33.66% to 33.99%; Tax rates of 30.90% for SMEs (total income < 10mn)
  Service tax exemption on clinical trials; + Ve Dr Reddy, Ranbaxy, Biocon
  Service tax on commercial property rent; - ve Pantaloon, Shoppers Stop, Trent
  Service tax on commercial property rent; - ve Multiplexes
  MAT not levied on 10 AA - SEZ's spared; marginally positive for SEZ players
  Proposal for Single tax levy on Telecom; directional + ve for telecom's
  Export Duty of Rs 300/tonne on iron ore; Negative for Sesa Goa
  Customs duty cut on coking coal; + ve for steel, power co's
  Measures to contain cement prices; +ve for construction co's