Automobile sector is one major sector which should be closely watched during the budget. There is likelihood that the government may not change the cut in excise duty structure on vehicles that was announced during the interim Budget. However the auto industry which is reeling under slow growth is demanding futher cut in excise duty. The stocks of auto companies may suffer if government rolls back excise duty cut.



Stocks of companies which have dominant presence in diesel vehicles will be either be net sufferer or gainer depending on the government decision. It is widely expected that the change will be resticted only to SUVs. However, the companies which deal mostly with petrol cars will not be affected much. Some respite may be seen if government decides to reduce excise duty on electric and hybrid cars. Other demands include reducing excise duty on small cars, buses and increase in expenditure in JNRUM scheme for urban development.



Reema Sharma/Ajeet Kumar