| |
| | | Advertisement | | |
| |
February 29, 2008 18:24 IST
What the Budget does - Aluminium metal scrap to be exempt from customs duty
- Continuation of power sector reforms
- Excise duty reduced on manufacturing of automobiles of certain specifications
- Coal regulator to be appointed to oversee allocation of coal blocks
- Encouragement to usage of green technology
- Dividend tax paid by parent company allowed to be set off against the same paid by its subsidiary
Also read: How Budget affects your stocks Impact on sector - While reduction in customs duty on aluminium metal scrap is positive for certain secondary aluminium manufacturers, it is negative for ingot manufacturers like NALCO and HINDALCO [Get Quote]
- Increased investments in T&D will help boost demand for aluminium as the electrical sector is the major consumer of aluminium in the country
- If the auto players pass on the reduced excise duty benefits, it will help spur auto demand, which in turn would drive demand for aluminium based auto components
- Promotion of green technology will lead to demand shift towards aluminium owing to its environment friendly qualities like lower weight and better strength
- The proposed coal regulator will help ease the process of allocating coal blocks, a key feedstock for captive power plants
Impact on companies - Companies like NALCO and HINDALCO will be positively impacted due to greater demand from sectors like auto and power
- Customs duty exemption on aluminium metal scrap is likely to make its cost more competitive vis-�-vis the ingots being manufactured by NALCO and HINDALCO
Powered by Equitymaster.com, an independent equity research initiative. Equitymaster is currently celebrating its 10th Anniversary. To know more about the special offers on its equity research subscription services, please click here
Great books on the Budget. Click here!Budget for some good karma, this year | |