Party just got over, but who will foot the bill?

Anup Bagchi, CEO, ICICI Direct.com
Overall it is a positive Budget, as the finance minister has taken measures to boost the rural sector. Also, he has raised the FDI limits in crucial sectors such as telecom and insurance.

Removal of long-term capital gains tax will benefit investors. However, the main negative is the turnover tax, which is on the higher side and could impact liquidity.
Top Picks: GE Shipping, Bharti Tele-Ventures, fertiliser manufacturers and companies focused on the rural sector.
Anup Bagchi, CEO, ICICI Direct.com

Vineet Bhatnagar, CEO, Refco-Sify
The finance minister is trying to trigger growth in both the agricultural and manufacturing sectors. There are also some broad measures to develop infrastructure.

The decision to raise FDI in telecom sector and the introduction of tonnage tax for shipping are positive moves. But the 0.15% turnover tax on securities transaction is on the higher side. The market hoped both long and short-term capital gains tax will go.
Top Picks: Hindalco, GE Shipping, Bharti, Arvind Mills and L&T

Ramesh Damani, BSE Member
This Budget lacks bold strokes and the vision of Chidambaram’s ’97-98 Budget. There was no intellectual touch that was the characteristic of his earlier budgets. Turnover tax is a major negative for the market, as it will have a great impact on transaction costs, and the liquidity in the market is going to be affected. It is also very harsh on jobbers and arbitrageurs. I don’t think our market is ready for turnover-based tax.
Top Picks: ITC, Agricultural sector and Shipping

SA Narayan, CEO, Kotak Securities
The FM has taken some bold steps such as raising the FDI limit in sectors such as telecom, aviation and insurance. He also said that Rs 4,000 crore will be raised through divestment. Removal of long-term capital gains tax and introduction of tonnage tax for shipping are positive moves. But the biggest negative is the turnover tax, which is going to hit liquidity in the market.

Top Picks: Punjab Tractors, Bharat Electrical, SCI and GE Shipping

Ajit Surana, MD, Dimensional Securities
The 0.15% turnover tax hangs like a Damocles’ sword over our markets. Otherwise, it would have been received as an acceptable stop-gap Budget. The FM seems to have withheld major announcements for his next Budget. Fiscal consolidation and the emphasis on education are bright spots. The major thrust has been on agriculture as well as infrastructure and social sectors.
Top Picks: Eicher Motors, M&M, GE Shipping, Hindustan Construction, IVRCL, Prism Cement
Sandeep Bhatia, Head of Research, UBS Securities India
The Budget signals continuation of the pro-reforms policies followed by various finance ministers over the last decade. It shows that the economic policy has not been hijacked by the Left. The announcements that the revenue deficit will be wiped out by ’09 and VAT will be put in place by ’05 are quite positive. But the sharp fall in money raised through divestment will impact the fiscal deficit target.
Top picks: Tractor and cigarette companies.