NSE-BSE Waiting For Union Budget 2011

"NSE BSE & Budget"

Our Finance Minister is going do announce Union Budget 2011-12 at 11 AM. All including Stock Benchmarks NSE BSE, are waiting for the budget eagerly. The movement of stocks will depend on the offers given by Finance Minister. It is predicted  that the market will jump at least to 100 points today .

It is predicted that the coming budget may be the "Bundle of Surprises" for stock market which can turn the whole game. Only Union Budget is capable to change the direction of stock market and helps it in overcoming the present situation.

All the sectors of stock market expecting some good from Pranab Da. Here is a wish list presented by various sectors:-

Banking sector: Demands of Banking sector are-

• The biggest demand of the banking sector is tax breaks on longer tenor deposits to help deposit growth. 
• Bankers also expect the government to announce subsidies for no-frills or zero balance accounts.
• The banking industry also wants overnment subsidy or concessions on interest rates.
• Raising the limit of refinancing from IIFCL.
• Recapitalisation of public sector units.

Information Technology: Demands of IT sector are-

• It is mainly focused on tax breaks.
• Software Technology Parks of India (STPI) scheme should be allowed for another one year till the implementation of the Direct Tax Code in 2012.
• Reduction of Minimum Alternate Tax or MAT currently at 18 per cent.

Auto sector: Demands of Auto Sector are-

• The auto component manufacturers have asked to set up Rs. 7,500 crore technology upgradation and development fund for the next five year period.
• They want import duty on steel and aluminium alloys.
• Lower corporate tax rates.
• Lowering of the minimum alternate tax.
• Speedy introduction of the GST.

Infrastructure:  Demands of Infrastructure Sector are-

• To raise the limit for investment in tax saving infrastructure bonds from Rs.s 20,000 per annum currently.

Healthcare/Pharma: Demands of Healthcare/Pharma Sector are-

• It seeks an extension of tax holiday for hospitals from five years to ten years owing to longer pay back periods and assistance in raising capital for setting up more healthcare infrastructure.
• Its hope on the much needed infrastructure status. 

Real Estate: Demands of Real Estates are-

• It seek an extension of the 1 per cent interest subsidy to borrowers with loans of up to Rs. 10 lakh for houses costing less than Rs.s. 20 lakh further from March 31 when it expires.
• It want the government to increase the tax break for customers paying interest on home loans from the current Rs. 1,50,000.

 

There is a wish list by corporates. How much will they be fulfilled and how will the budget affect the stock market and what big indices are expecting form the budget , will be seen after the announcement of this most awaiting  union budget.