Friday, February 29, 2008

UNION BUDGET

Revenue deficit at 1.4% against budget estimate of 1.5%; To eliminate revenue deficit in FY10;

Fiscal deficit at 3.1% against budget estimate of 3.3%;

Total agricultural output 219.32 million tonne. Agriculture growth rate at 2.6% in 2007-08

Increased defence allocation from Rs.96,000 crore to Rs.1,05,600 crore, a rise of 10%

The income tax slab has been hiked from Rs.1,10,000 to Rs.1,50,000

10% tax on income from Rs.1,50,000 to Rs.3,00,000

20% tax on income from Rs.3,00,000 to Rs.5,00,000

30% tax on income over Rs.5,00,000

Tax exemption limit for women hiked from Rs.1,45,000 to Rs.1,80,000

Exemption limit for senior citizens raised from Rs.1,95,000 to Rs.2,25,000

Short term capital gains tax raised from 10% to 15%.

No change in DDT and STT

Waiver of loans to small and marginal farmers to the tune of Rs.60,000 crore.

No change in peak customs duty rate

CENVAT rates reduced on all goods from 16% to 14%

Exchange-traded currencies; interest rate derivatives to be introduced;

Allocated Rs.31,280 crore towards Bharat Nirman Progarm

Banking cash transaction tax to be removed

Service tax limited hiked to Rs 10 lakh.

Duties on iron ore exports increased to Rs 3,000/tn

Small cars to become cheaper

No change in corporate tax and surcharge

Three new IIT’s to be started in Andhra Pradesh, Rajasthan and Bihar

Urged to open bidding for five more UMPPs.

PAN requirement extended to all financial markets.

Textile Upgradation Fund to be raised from Rs.911 crore to Rs.1090 crore

30 integrated textile parks approved.

Increased outlay and spending on education

Increased outlay for irrigation

Customs duty reduced on steel scrap, few bulk drugs, cattle and poultry feed raw material, dairy industry, crude and refined sulphur used by fertiliser sector

Excise duty reduced on pharma goods, buses/chassis, cars, hybrid cars, two wheelers, paper and paper products, refrigeration equipments above two tonnes, bulk cement, cement clinker.

Special purpose tea fund to get Rs.400 crore and crop insurance scheme for tea plantations.

Intraday Calls for 29th Feb

Markets today totally depends on BUDGET. So be very carefull in today's trading.

Buy for Intraday: (Buy at lower levels as market may open weak as all global markets trading lower)

SAIL (253)
Tata Steel (824)
Nagarjuna Fert. (56)
Chambal Fert. (64.5)
Oswal Chemical (50)
Ansal Infra (215)
GMR Infra (176)
Power Grid (111)
RPOWER (442)

Good Luck

Disclaimer

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