INDIAN
EQUITY BENCHMARKS erased all its early gains and ended in the red on the back
of profit booking.
Further,
Hindalco Industries net profit declined 48.5% to Rs 248.15 crore on 20.9% growth
in net sales to Rs 8359.85 crore in Q4 March 2014 over Q4 March 2013. JSW
Steel reported quarterly crude steel production at 3.10 million tons for Q1
FY2014-15 showing a growth of 8% over the corresponding quarter of previous
year.
The crucial
resistance for Nifty is now seen at 7730 and above this 7810.Support
for the immediate term is now placed at 7480 and next support will be
7540.
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Highlights of the budget presented by Finance Minister Arun Jaitley
·
FISCAL DEFICIT
Accepts fiscal deficit target of 4.1 percent of GDP
for 2014/15
Fiscal deficit seen at 3.6 percent of GDP in 2015/16
Tax-to- GDP ratio must be raised
·
GROWTH
Aims for sustained growth of 7-8 percent in
the next 3-4 years
Finance minister says he is bound to usher in
policies for higher growth, lower inflation
·
TAXATION
Aims to approve goods and services tax by end of
this year
Will not change rules on retrospective taxation
All pending cases of retrospective tax for indirect
transfers to be examined by a high-level committee before action is taken
Proposes changes in transfer pricing mechanism
·
INVESTMENT
Raises limit on foreign direct investment in defence
sector from 26 per cent to 49 per cent raises FDI limit in insurance sector to
49 percent
Earmarks 70.6 billion rupees to create 100 'smart
cities'
Will provide the necessary tax changes to introduce
real estate investment trusts and infrastructure investment trusts
Proposes 40 billion rupees for affordable housing
through national housing bank and extends tax incentives for housing loans
·
SUBSIDIES
Plans to make food and petroleum subsidies more
targeted
Rural job-guarantee scheme, which provides 100 days
of paid employment a year, will become more focused on asset creation
Proposes 80 billion rupees for rural housing scheme
·
AGRICULTURE
Will focus on achieving 4 percent growths per year
in agriculture
Sets farm credit target at 8 trillion rupees for
2014/15
Proposes a long-term rural credit fund with an initial
corpus of 50 billion rupees
NEWS TO WATCH :
·
Watch out for Quaterly Earning of
Infosys on 11 July 2014.
