Budget 2018 Impact on Market: Most traded stocks outside NSE Nifty

From Vakrangee to Avenue Supermart, these non-Nifty stocks were traded the most after Finance Minister Arun Jaitley's Budget 2018 announcements

Finance Minister Arun Jaitley on Thursday presented Union Budget 2018-19 in Parliament. This was his fifth and the Narendra Modi government’s last full Budget before heading into the 2019 general elections. After the Budget announcement the stocks of some companies listed on Indian bourses saw high trading volumes.
 
This EY analysis looks at the most traded non-Nifty stocks and lists which of the Budget announcements might have triggered the activity in each of those stocks:
 
Shakti Pumps
·       Rationalization of additional deduction of 30% on new employees

·       Existing secondary and higher education cess of 3% increased to 4%

·       Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%
·       Long term capital gains tax @10% introduced on sale of listed shares
·       Increased budget in farming sector to create opportunities for Shakti Pumps
·       Budgetary expenditure on agriculture sector increased to 5.97 lakh crore from 4.94 lakh crore last year
·       Increase in the effective duty due to introduction of social welfare surcharge
Spice Jet
 
·                Increase in Education cess from 3% to 4%
·                80JJAA provisions rationalized to give benefit to new employees subject to condition
·                Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards

·                Airport capacity will be expanded by more than 5 times.
·                Clarity on levy of IGST u/s 5(1) for aircrafts, aircraft engines and other aircraft parts imported under cross border lease during period 01 July 2017 to 07 July 2017
Delta Corp
 
·                Increase in Education cess from 3% to 4%
·                Compensation on termination or modification of terms and conditions of contract to be taxable as business income or income from other sources
·                80JJAA provisions rationalised to give benefit to new employees subject to condition
·                Increase in custom duty for video game consoles and machines and others

·                Developing 10 prominent tourist sites into iconic tourism destinations
·                Tourist amenities at 100 Adarsh monuments to be upgraded to enhance visitor experiences.
 
Piramal Enterprises
 
·         Rationalization of additional deduction of 30% on new employees
·         Existing secondary and higher education cess of 3% increased to 4%
·         Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%
·         Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income
·         No Chapter VI-A deduction unless the return of income is filed within due date
·         Introduction of World’s largest government funded health care titled “National Health Protection Scheme” to cover over 10 crore poor and vulnerable families.

·         Allocation of INR 1200 crore for the National Health Policy 2017.
·         Additional Health and Wellness Centres to be established across India.
·         Tariff rate on specified medical devices increased from 7.5% to 10% but custom duty rate remains unchanged
·         Increase in effective duty due to increase in Social welfare surcharge
 
 
Avenue Supermart
 
·         Rationalization of additional deduction of 30% on new employees
·         Existing secondary and higher education cess of 3% increased to 4%
·         Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%
·         Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

·         No Chapter VI-A deduction unless the return of income is filed within due date
·         Renewed focus on rural wages and jobs growth  likely to spur growth for consumer packaged goods companies
·         Increase in effective duty due to increase in Social welfare surcharge
 
Suven Life Sciences
 
·         Rationalization of additional deduction of 30% on new employees
·         Existing secondary and higher education cess of 3% increased to 4%
·         Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%
·         Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

·         No Chapter VI-A deduction unless the return of income is filed within due date
·         Introduction of World’s largest government funded health care titled “National Health Protection Scheme” to cover over 10 crore poor and vulnerable families.
·         Allocation of INR 1200 crore for the National Health Policy 2017.
·         Additional Health and Wellness Centres to be established across India.
·         Setting up of 24 new Government Medical Colleges and Hospitals by upgrading existing district hospitals in the country.
·         Increase in effective duty due to increase in Social welfare surcharge
 
Vakrangee
·         Rationalization of additional deduction of 30% on new employees

·         Existing secondary and higher education cess of 3% increased to 4%
·         Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards
·         Chapter VI-A deduction denied in case of belated return
·         Budget allocation doubled on digital India program to INR 3073 crores in 2018-19
·         Initiation of national program to direct efforts in Artificial Intelligence
·         Increased focus on cyber physical systems to support Artificial Intelligence, robotics, digital manufacturing, big data analytics and IOT

Reliance Communication
·         Rationalization of additional deduction of 30% on new employees
·         Existing secondary and higher education cess of 3% increased to 4%

·         Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%
·         Long term capital gains tax @10% introduced on sale of listed shares
·         Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards
·         BCD levied at 5% on preform of silica for use in the manufacture of telecommunication cables
·         Increase in the effective duty due to Introduction of social welfare surcharge
·         Total outlay of INR 10000 crore has been proposed for creation and augmentation of Telecom infrastructure in 2018-19
 
Cox & Kings
·         Rationalization of additional deduction of 30% on new employees

·         Existing secondary and higher education cess of 3% increased to 4%
·         Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards
·         Chapter VI-A deduction denied in case of belated return
 
 
Just Dial
·         Rationalization of additional deduction of 30% on new employees
·         Existing secondary and higher education cess of 3% increased to 4%
·         Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards
·         Chapter VI-A deduction denied in case of belated return
·         Budget allocation doubled on digital India program to INR 3073 crores in 2018-19

·         Initiation of national program to direct efforts in Artificial Intelligence
·         Increased focus on cyber physical systems to support Artificial Intelligence, robotics, digital manufacturing, big data analytics and IOT
 
Disclaimer: The data have been provided by EY. Neither EY nor Business Standard is liable for any action taken on the basis of this data