<div>The fourth Union Budget of the ruling UPA government – and supposedly the last before general elections early next year - has turned a non-event for equities market.</div><div> </div><div>According to market researchers, barring select price upgrades in shares of housing finance companies, road pavers, infrastructure builders, FMCG companies, realtors and power utilities, the budget will have negligible impact on overall markets.</div><div> </div><div>Most analysts, whom BW consulted, are also not expecting any post-budget rallies this time round. The general consensus is that markets will consolidate at current levels – between 5700 and 5900 on the Nifty – over the next few trading sessions.</div><div> </div><div>“We’re not expecting any post-budget rallies this time around. It was a very normal, neutral budget with some support to select sectors – stocks of which could appreciate over the next few days,” Bharat Shah, head of institutional business at Ventura Securities, told Businessworld.</div><div> </div><div>Among (budgetary) announcements that were well-received by the markets include tax rebate for first time home loan buyers for up to Rs 25 lakh, removal of barriers with regards to distribution of NELP oil blocks, proposal to build 3,000 kms of roads, reduction in import duty for set-top boxes, higher defence and infrastructure spending, reduction in statutory transaction tax for equity trades and duty reduction on precious and semi-precious stones from 10 to 2 per cent.</div><div> </div><div>Interest subvention scheme by private sector banks for short-term crop loans, higher excise duty on cigarettes, higher excise duty on SUVs from 27 to 30 per cent and imposition of Commodities Transaction Tax (CTT) have dampened market sentiments.</div><div> </div><div>“It’s definitely not a big-bang budget. There’s mild positivity with regards to the estimated fiscal deficit numbers. But in overall terms, there’s nothing much to spur markets from current levels,” said Siddharth Sedani, assistant vice-president (portfolio Management Service), Microsec Capital.</div><div> </div><div>Brokers expect companies like LIC Housing Finance, Reliance Industries & ONGC, DLF, IRB, Gitanjali Gems, Rajesh Exports, Titan Industries, Entertainment Network India Ltd, Hathway Cables, Den Networks, Dish TV, Alok Industries, Rolta, BHEL, BEL, Tata Power, Punj Lloyd, L&T, NTPC, Bata Ltd and GMR Infrastructure, among others, to gain over the next few days on the bourses.</div><div> </div><div>Among stocks that are likely to correct over the next few days include private sector banks like ICICI Bank, HDFC Bank and Axis Bank, automobile companies like M&M and Tata Motors and cigarette manufacturers like ITC and Godfrey Philips. India’s lone listed exchange group – the Multi-commodities Exchange – MCX – may also drop on account of the introduction of CTT, equity analysts said.</div><div> </div><div>According to K. Subramanyam, AVP -Institutional Research, Asit C.Mehta Intermediaries, the budget was disappointing in the sense that some serious concerns were unaddressed. “Firstly, going by the concerns on the state of the equity markets nothing was announced to encourage retail investors to participate in Indian markets .The RGESS which could have been tweaked to be more effective was not done. Deposits in banks have been showing a falling trend and major power restructuring plans are ahead like re-structuring of SEB short -term loans where banks will play a vital role. No announcement to encourage retail savings in banks was done,” Subramanyam said. </div><div> </div><div>A section of the market is also not happy about the bulging food subside bill, which has grown from Rs 24,000 crore in 2006 – 07 to about 1,00,000 crore in 2014. “Government finances could further get aggravated and all reforms on the oil & gas front will come to nothing as it will be offset by this fast rising burden,” Subramanyam of Asit C. Mehta Intermediaries said.</div>
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