There is a lot at stake in Prime Minister Narendra Modi's budget this fiscal year. Once the fastest growing economy in the world, India is now trying to restart economic growth that has been reduced to a minimum of 11 years.
The finance minister said that this budget was aimed at increasing revenues and improving purchasing power, and stressed that the fundamentals of the economy were strong and that inflation was well contained.
Here is a short list of winners and losers of Saturday's budget announcements.
Live plus Transport infrastructure
Sitharaman unveiled plans for Indian roads and railways, proposing Rs 1.7 trillion ($ 23.7 billion) for transportation infrastructure that includes accelerated road development and plans to monetize 12 lots of highway packages.
Key infrastructure players such as Larson&Toubro and KNR Constructions and IRB Infra seem to be ready to benefit.
The government's plan to encourage the manufacturing of mobile phones, electronic equipment and semiconductor manufacturing, as well as medical devices, will be positive for companies such as Dixon Technologies, Amber Enterprises, Subros, said Vinay Pandit, director of institutional equity at IndiaNivesh.
The agricultural and rural sectors were assigned Rs 2.83 trillion, while the agricultural credit target for next year is set at Rs 15 trillion.
News about the government's proposal to expand fisheries and create 500 organizations of aquaculture producers saw gains in Avanti Feeds, Apex Frozen Foods and Water Base.
The minister announced that the rail service will be equipped with air-conditioned freight cars and the government will provide funds for the viability gap for storage. Container Corporation of India Ltd will become the biggest winner of the move.
The fast-moving consumer goods index recovered, while Emami, Hindustan Unilever, Dabur, Tata Global are ready to recover even more.
Sitharaman announced measures to help the growth of the agricultural sector in districts with water scarcity, helping to increase the actions of VA Tech Wabag Ltd, which designs and builds water treatment and sewerage plants.
Shakti Pumps India Ltd fue el que plus saltó en tres semanas sobre propuestas para ayudar a los agricultores a instalar bombas solares independientes que les permitan ganarse la vida con sus tierras yermas.
The plan to provide piped water in Indian homes by 2024, with Rs 3.6 billion in funds, means that Jain Irrigation Systems Ltd, KSB Ltd, Kirloskar Brothers Ltd., JK Agri Genetics Ltd., PI Industries Ltd. could benefit.
The minister also announced Rs 123 billion for the Clean India mission. Companies that include Hindustan Unilever, ITC, Procter and Gamble, Godrej can win here.
The government is also developing Bharat Net, or Bharat Broadband Network Ltd., a program to bring broadband to villages. The government plans to provide Rs 60 billion for the project in the next fiscal year.
Reliance Industries and HFCL Ltd. will benefit.
Education received considerable attention in Sitharaman's budget discourse, and the sector received Rs 993 billion in 2020-21.
The establishment of complete and grade level online education programs that will be offered by institutions that are ranked in the top 100 in the country will see online educators such as the National Institute of Information Technology and the MT Educare benefit.
The announcement of a policy that allows the private sector to build data center parks has the potential to benefit all IT companies, including Infosys, Wipro, HCL Technologies, Tech Mahindra, along with medium-sized companies such as LTI, Mindtree, Persistent and Hexaware .
Adani Enterprises will also benefit from this development.
Suppliers of gas pipelines and city gas
India plans to expand its national gas network to 27,000 kilometers from 16,200 kilometers.
Pipe suppliers such as Welspun Corp., Maharashtra Seamless Ltd., Ratnamani Metals&Tubes Ltd., Jindal Saw and Man Industries India Ltd. will benefit. The expansion of the national gas network is also positive for companies such as IGL, MGL and Gujarat Gas.
The government’s plan to sell a part stake in Life insurance Corp. triggered declines in shares of private insurers, which were star performers in 2019. SBI Life insurance Co. fell, as did HDFC Life insurance Co. and Nippon Life India Asset Management Ltd.
The finance minister remained silent by infusing new capital into state banks by 2020-21. If the government does not inject new capital, it would be the first in the five years of Modi's power.
State Bank of India Ltd., Bank of Baroda, Canara Bank, Union Bank of India, Bank of India and Punjab National Bank could be affected.
The S&P BSE Bankex index of lenders fell 1.5%, the most since January 20.
Real Estate and Construction
The actions of real estate companies such as Godrej Properties, Oberoi Realty Ltd. and DLF Ltd. and Prestige Estates declined when the finance minister did not announce any specific measures for the sector, which had demanded measures to improve credit availability for developers , a state of the industry and other measures that could boost sales.
The proposed cut in personal tax rates that will likely improve the purchasing power of the middle class and the continuation of the tax rates for affordable housing announced in the budget failed to excite real estate actions.
Rashtriya Chemicals&Fertilizers Ltd. extended declines among fertilizer manufacturers after Sitharaman proposed balancing the use of chemical fertilizers with a change in incentives. He also announced a renewed focus on zero-budget agriculture that significantly reduces fertilizer consumption.
Other affected include Mangalore Chemicals&Fertilizers, Chambal Fertilizers and Chemicals Ltd. and Madras Fertilizers Ltd.
The delay in the long-awaited National Logistics Policy of the country will be a disappointment for key players such as Blue Dart, Gati and Mahindra Logistics, who have been waiting for the announcement for several years.