Let’s Talk Markets

A complete analysis of the market to help you understand stocks better. Watch research videos and get other useful insights to be well versed with the latest market trends.

Understanding Stocks

Get acquainted with various Do’s & Don’ts of stock market trading. Read more and understand how you can cautiously use you money to make smart investments.

From the Service Desk

Are you uncertain about trading in a volatile market? Our service desk answers all your doubts regarding share trading and stock markets. Educate yourself on how the market behaves and be more confident with your decisions.

Technical Analysis

Learn how SMA (Simple Moving Averages), Bollinger Bands, Williams %R and various other technical charts can assist you in stock trading. Learn to make effective prediction on the movement of stocks using technical analysis of past-market data.

Management Musings

Learning from the experts - Know the macro views on the markets and the industry as our top leaders analyse and discuss the prevailing trends.

Insights

Get to the core of a company’s financial statements with insights provided by our experts. Read through the fine print of results and analysis to choose the right stock to invest.

Fundamental Analysis

Read all about our research team’s work on the “Fundamentals” of a company. Our analysts’ help you make informed decisions to help you make smart investments and generate better returns.

Others

Understanding Derivatives

uTalk

Share your experiences and opinions with us. Get to know the many fascinating stories of our employees, clients and everyone else who has an opinion.

Budget 2013 - Construction

Tuesday 19 March 2013

Construction to lead to better projects, jobs and facilities.

Budget 2013 announced enhanced allocations for the Jawaharlal Nehru National Urban Renewal.

Mission (JNNURM) to Rs 148.7 bn for FY14 as against Rs 73.8 bn for FY13, thereby increasing spends on urban infrastructure. Along with this, the second phase of Pradhan Mantri Gram Sadak Yojana has also been announced with allocation of Rs 217 bn to boost construction of roads in states like Andhra Pradesh, Haryana, Karnataka, Maharashtra, Punjab and Rajasthan. Lastly, with the focus on better facilities, the Budget has also catered for Rs.153 bn to be allocated the Ministry of Drinking Water and Sanitation.

Construction Companies will also be able to raise funds for CAPEX easily with India Infrastructure Finance Corporation Ltd (IIFCL) and the Asian Development Bank partnering to offer credit enhancement to infrastructure companies to access bond markets better and tap long term funds. Infrastructure Debt funds (IDF) are being made attractive to encourage Companies to raise finances through take-out financing and credit enhancement at long-term low-cost debt.

The Government also intends to award 3000 km of road projects in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh in the first six months of FY14. For better compliance and quality and to improve the bottlenecks in the road sector, the Budget looks at constituting a regulatory authority for the road sector for faster execution of stalled projects.

However, the additional 5% surcharge will lead to an increase in the tax liabilities of companies that may marginally impact profits.

So who wins this year?

More orders, easier fund raising and upto Rs 500 bn in tax free bonds through NHAI, Indian Railway Finance Corporation, HUDCO and ports, would lead to better financing options for infrastructure projects. With a regulatory body in place, projects are expected to be implemented and completed faster thereby leading to better looking bottom-lines in the sector overall.

Want the stalwart of the industry analyze the budget for you? Click here.

Looking to invest in the Construction sector? Click here to open an account with Kotak Securities.

Labels:


0 comments Post Comment