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.
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.
Tuesday 19 March 2013
The
Union Budget 2013 has been marginally positive for large flat steel companies with the export duty on galvanized steel sheets being reduced from 7.5% to NIL. Additionally the proposed Investment allowance of 15% to manufacturing companies investing > Rs1bn in plant and machinery is expected to positively impact the sector as most of the companies are likely to have higher than stipulated capital expenditure for investment allowance.
The Budget has also laid emphasis on the need for sustained thrust on infrastructure to stimulate the demand for steel. Provisions such as
Tax free bonds of Rs. 500bn have been allowed for the financing infrastructure projects in FY13-14. The impetus is also on promoting housing for low/medium income groups with additional deduction of interest being allowed on the first home loan up to Rs2.5mn. Faster progress is also expected to be made on the Delhi-Mumbai Industrial Corridor and setting of 3 new ports.
The proposed increase in excise duty from NIL to 4% on silver manufactured from zinc/lead smelting is expected to be marginally negative for Hind Zinc and would be negated to some extent through passing on the costs to the buyers. The increase in import duty on thermal coal is expected to be negative for base metal producers who use mix of domestic and imported thermal coal for producing captive thermal power for their smelting process. However, the proposed export duty on bauxite is increased from NIL to 10% is expected to be positive for Indian aluminium companies as for some it would reduce the price of domestic bauxite and for some it would lead to higher realisation on improved international alumina prices.
So who wins this year?
The reductions in export duty of galvanized steel sheets is marginally positive as Indian Companies in the sector produce around 4 mtpa of galvanized steel but have not been able to make much headway in international markets as it was uncompetitive for them due to the prevailing duty. Reduction in the duty to nil is expected to help them to make exports competitive and improve sales revenue. Also budget is positive for domestic commercial coal producers as realizations under e-auction route would increase due to net 3% increase in import duty and CVD on imported thermal coal.
Want the stalwart of the industry analyze the budget for you?
Click here.
Looking to invest in the Metals and Mining sector?
Click here to open an account with Kotak Securities.
Labels: postbudgetanalysisreport
