GENERAL INDIAN BUDGET 2015 PRESENTED BY MR. ARUN JAITLEY

This is to inform you that 28-02-2015 is very important day for us because Today is General Budget Presented by Indian Financial Minister "Mr. Arun Jaitley".
It shall be first full year budget presented by the current Government.
The Vibrant new government of Honorable Prime Minister "Mr. Narendra Damodardas Modi" has a lot of expectations riding on it and this budget is expected to be a road map for the economy and what segments would be growth drivers the futures.
Mr. Jaitely has a lot tailwinds that seem to be helping him this year

Reduction in Subsidy bill to the tune of Rs.30,000/- CRS in FY-16 due to fall in Crude prices.Revenue Increase in the tune of Rs.60,000/- CRS in FY-16 due to 4 Consecutive hikes in the Exice Duty.We believe with the fall in Petrol and Diesel Prices, India as a country is saving Rs.48,000/- CRS (0.4% of GDP) which should come back as incremental investment and consumption into the system.

• Fall in Crude Prices should make India a BOP Surplus Economy.
• Falling Interest Rate Regime.
• Investing Private Capital.
• Investments Which will help boost the GDP growth Rate.

The Trade off the face to either focus on :

• Following the fiscal consolidation road map by achieving 3.6% deficit, or work with a 4.1% fiscal deficit number and allocate the extra money to various planned expenditures.

Budget Expectations :

• We Expect the F.M. to take the more aggressive stance and take measures to improve growth
• A 4.1% deficit target to free $20-25 billion for additional plan expenditure.The policy stance highlighted from the allocations to various plan expenditures to act as a catalyst in increasing investment and growth cycle.

Sectors to Outperform in 2015 :

•  Banking and financial service companies
•  Manufactured exports segments such as textiles and auto ancillaries
•   Cyclical and interest sensitive stocks

Infrastructure : EPC, Defense, Renewables, Ports (Infrastructure should outperform now with renewed government focus and investments, despite the recent business problems and struggling balance sheets).
Overall Corporate earnings are expected to grow by around 15-20%. However , mid cap earnings growth are will outperform the broader markets, Which is why despite the current premiums; they are expected to outperform growing forward.