Consumption boost for corporate India

Budget provides mild stimulus at bottom of the pyramid but not enough for turnaround in capex cycle

The Budget proposals tried to take some sting out of the demand hit that corporate India took after demonetisation. Proposals such as a higher allocation for agriculture and the rural sector, a cut in tax rate for payers in the lowest slab and a fiscal impetus for affordable housing are likely to boost overall demand. And, aid corporate India’s revenue growth in 2017-18. 

The biggest beneficiary would be manufacturing companies in the building material space, such as cement, paints and allied industries. Among individual companies, it would be positive for UltraTech Cement, ACC, Shree Cement, Asian Paints, Kansai