Infra is a major beneficiary: Avinash Gupta

Avinash Gupta, Assistant Vice President Research Equity, Bonanza Portfolio Limited.

The budget presented by the finance minister was a pleasant surprise. The key aspects of the budget are as follows, the government is keen to ensure that growth is not derailed. The FM has maintained the commitment of reaching 5.5% of GDP as the fiscal deficit for the year FY11 and laid out a road map for future.

Further, the FM has announced a reduction in the personal income tax by raising the slabs, which is positive. The roll back in the excise duty cuts was in line with the market expectations. The emphasis on Infrastructure and Agriculture continues

Government appears to be committed to the implementation of GST, New Direct Tax Code, Financial sector reforms and reforms in pricing of petroleum fuels. It has also reiterated the need for better targeting of subsidies.

The segments likely to get benefit from the budget are those related to infrastructure and industries related to it (construction, cement and steel), agriculture related industries and industries linked to domestic consumption (Consumer Durables, FMCG, Media & Entertainment, Retail).