India's benchmark Sensex plunged as corporates said the higher excise duty and service tax proposed in the Budget would hurt growth. At 1440 hours, the Sensex was down 226 points or 1.3% at 17,450 while the broader Nifty index traded 66 points lower at 5,314.
The finance minister has also proposed to retrospectively change the tax law as far as the Vodafone case is concerned and this will not go down well with foreign investors, analysts told NDTV Profit.
According to the Budget proposal, offshore transfers will be taxed in India if the shares derive its value substantially from assets in India.
"This will be very negative from FDI and FII perspective. I would like to think this would not happen because this is something that should not be done," Tarun Kataria, chief executive office of Religare Capital Markets said.
Here are 10 stocks that have seen strong movement post the Budget announcement:
1) Sun Pharma: down over 7%, biggest Nifty loser
Why: MAT to be levied on limited liability model. Sun Pharma works on limited liability model.
2) Cairn India: down over 5%
Why: Cess raised from 2500/mt to 4500/mt (from $7/bbl to $12/bbl). Brokerage firm CLSA says raising cess is negative.
Other stocks affected: ONGC, OIL and RIL.
3) Standard Chartered IDR: up 20%
Two-way fungibility on IDRs have been allowed.
4) Motilal Oswal: up 2.5%
Why: STT has been cut.
Other stocks affected: Geogit BNP Paribas, Prime Securities, JM Financial.
5) Coal India: up 1.5%
Why: Coal duty abolished
6) Atlas Cycle: up over 15%
Why: Import duty on cycles and parts cut
7) Jet Airways: down 2.5%
Why: No progress on FDI in aviation.
8) M&M: up 2%
No additional hike in excise duty
9) ITC: up 3%
The stock has gone up despite hike in excise duty.
10) Petronet LNG:
Import duty cut.
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