Metals and Mining – Budget Spotlight

What To Expect For The Metals And Mining Sector?

Spotlight: Metals and Mining Sector

by Saurabh Agrawal, Research Analyst

• Broadly, we expect union budget to have neutral impact on the Metals & Mining sector

• Iron ore export duty may see a slight cut or remain same • We do expect the excise duty to increase to 12%, which will prove to be

marginally negative for the sector • There are expectations that greater tax deductions for interest paid on home

loans might come through in this budget which would help revive steel intensive real estate sector. This would prove to be beneficial for long steel demand in India

• Also, any substantial increase in slabs for income tax calculation, if proposed, would help boost consumer durable and automobile demand, which will further help in strengthening the demand for flat steel in India

• We believe that higher fund allocation for infrastructure development of road,

power, railways, ports and airports would be needed to revive steel demand in India. This may not be easy given the fact that the government might choose fiscal prudence

Thank You!

Give us your Feedback

OR

If you have any questions click on any of the icons below -

Read More

• Registered office: Kotak Securities Limited, 1st Floor, Bakhtawar, 229, Nariman Point, Mumbai - 400021. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230/INE 011207251, OTC INB 200808136, MCXSX INE 260808130.

• Disclaimer: Investments in securities are subject to market risks, please read the SEBI prescribed Combined RDD prior to investing.

• * Awarded Best Brokerage Firm in India by AsiaMoney in 2006, 2007, 2008 and 2009