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Investment Advisor, Ashish Chugh - The focus of the budget has been to boost consumption coupled with keeping inflation under control. This being an election year, some populist measures were expected – the loan waiver scheme for farmers was a measure which the markets were expecting, this may not be good economics though. The reduction in Excise Duty on several sectors/ products will give a boost to consumption. The positive surprise came from the change in Tax Slabs in respect of Personal Income Tax.

However, increase in Short Term Capital Gains Tax from 10% to 15% has come in as a negative surprise, which probably the markets were not prepared for. We believe this was a move which the finance minister could have avoided since the move can dent the market sentiment and may not lead to substantial increase in collections for the government. Moreover, the move to allow STT being allowed as expenditure may not be good news for arbitrageurs and brokerages who were earlier allowed to offset STT against their tax liability. The sectors which would benefit – Healthcare, Hotels and Pharma.

Healthcare – Apollo Hospital, Fortis Healthcare and Kovai Medicare
Hotels – Indian Hotels, and Kamat Hotels
Pharma – Aurobindo Pharma, Natco Pharma

He believe Long Term investment decisions need not be a knee jerk reaction to the budget recommendations. Investment approach should be being proactive rather than being reactive. Investors can choose to wait for markets to stabilize before investing.

Anil Manghnani of Modern Shares & Stockbrokers - The budget is a populas one. However, with markets already in weak position, there was no reason for the FM to touch the STCG. Rest of the budget is good and in line with expectations, he said.

He further said that Pharma will be a sector to watch out for, as it is already a beaten down sector and there is no reason for further downfall in this sector. Also, the budget is favourable to this sector as the FM has cut the customs duty on life saving drugs from 10% to 5%. Another sector to watch out for is Power as there is nothing negative for this sector and is an aggressive one, he added.

Satish Kannav of Arihant Capital - Stock markets will be negatively impacted by the budget but the economy will have positive impact with the loan waiver and increase in the exemption limit.

The budget will not propel growth to 9% but will be maintained at 8.5%. He is bullish on auto and FMCG frontliners. He likes Tata Motors, Ashok Leyland, Maruti. FMCG stocks like ITC and HUL also look good.

R S Iyer of K R Choksey Securities - According to him budget will give good support to market in long run. Short Term Capital Gains Tax (STCG) increase was negative but people will digest this news in some days.

Corporate tax which remained unchanged which had a negative impact on market. He is bullish on Apollo Hospital and also positive on Education sector.

Manish Bhatt of Prabhudas Lilladher - The budget is good. It is beneficial for sectors like Agriculture and infrastructure; even fertilizer stocks will be beneficial.

The short term capital gain tax which has been raised from 10% to 15% is not wrong according to Bhat.

V K Sharma of Anagram Stock Broking - Capital market could have been spared by the additional 5% tax; this was not expected in the Budget. Reduction in tax for the common man is good for an election bound government. This will improve the purchasing power and there could be increase in sale of white goods.

Education is one sector that he is bullish on. He is also bullish water purification company ION Exchange. But overall the budget does not have power to guide the markets overall there are still concerns from global factors.

Technical analyst, Rajat K Bose advised to buy Jain Irrigation. He also advised to buy tractors and tiller stocks like VST Tillers and Punjab Tractors. Amongst the fertiliser stocks like Nagarjuna Fertilisers and also buy Hero Honda.

The strategy would be to buy at lower levels as the increase in the short term capital gains tax impact could be negative. However for investments its not really bad. Manufacturers have been given a boost by reducing excise. Also the tax regime is stable though the increase in the short term capital gains tax could be a negative.

Source: Moneycontrol.com