analysis on financial sector

Finance plays a crucial role in the Economy

Slight change may affect the common man

MeasuresAmendments- Banking Regulation Act, 1949

Allowing Banking Companies to issue

Amendments- RBI, 1934

Removal Of CRR 0.1% banking transaction tax

Preference Shares

Removal Of SLR

Impact

Issue of preference share will help them to raise equity

0.1% transaction will discourage cash transaction

Infrastructure lending will increase bank’s advance & reduce their non performing assets( NPA)

Equity Market

Debt Market

Derivatives

Mutual Funds

Measures

Reduction in Tax Slab

Reduction in Corporate Tax

Proposal For Derivative Market

Impact

Views

Increase In Government Borrowings

Removal In SLR and CRR

Impact

Measures

It will put the pressure on yields

Increase in liquidity and volumes

Changes in definition of securities

Hike in division distribution tax from 13.07% to 14.25%

Impact

Cooperate bond will further strengthened

Negative impact

Views

MeasuresMeasures

Introduction of Gold Exchange Traded Funds (GTEF)

Impact

Influences Semi-urban and Rural MarketLower Transaction Tax

Views

Derivatives trading as Non-speculative business

Measures

Impact Impact

FIIs can submit collateral for F & O Trade

Investor can adjust the losses against profit from cash market

Increase the participation of FIIs and volumes

MeasuresMeasures

Exemption From Stamp Duty

Examples

Sao Paulo………………………………….Brazil

CBOT………………………………………..USA

Mexican Derivative……………….MEXICO

Measures

Increase from 0.015% to 0.020%

Less effect on Day Traders

Impact

Views

Measures

Allotment Of Rs. 5500 cr

Investments in:

Mumbai Metro

Trans-harbor Link

Mumbai-western Sea-link

Detail Proposal Of MMRDA

Impact

Strengthening Infrastructure

Increase in Employment, Consumption and Financial Standards

Views

Strengthen the Mumbai

Resources allocated are less

Sectors to look for Investment Point of View

Bullish Neutral

Cement

Automobiles

Textiles

Sugar

Oil (Refineries)

Pharma

FMCG

Telecom

IT