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Indian Budget - its impact on stock markets

February 29th, 2008

The Indian stock markets reacted sharply as the Finance Minister is presenting his speech. Here are some highlights of the market reactions

Increased spending for the Education sector will boost paper sector
Heath sector gets boost
Jain Projects to benefit due to increase irrigation allocation
Agriculture Loan waiver has negatively impacted public sector bank stocks. State Bank of India and its subsidiaries are down. Even stocks of private banks including ICICI Bank and HDFC Bank that had few exposure through agricultural loans is taking some heat
Textile sector gets maintained importance
Setting up of National T&D Fund to help power sector companies
Income Tax Slabs changed. Positive for individuals
Corporate Tax and Surcharge Rates not changed – no impact to corporates
STT not touched. Short Term Capital Gains increased to 15% - Negative for Short Term Investors

Entry Filed under: Equity Markets