Budget 2024: Realty, banks, defence among 9 sectors that appear short term losers. Here's why
asset management companies (AMCs), real estate, consumer, defence, OMCs and select stocks in the new age space according to estimates by top brokerages.
Here's what they say on sectors, stocks:
1) Banks & NBFCs
Macquarie in its budget review note sees absence of tax breaks on deposits as a near term negative for the sector.
2) Asset Management Companies
JM Financial sees hikes in the Long Term Capital Gains (LTCG) and Short Term Capital Gains (STCG) as net negative for AMCs as over 70% revenues come from equity schemes which now could make it less attractive compared to FDs.
The government hiked LTCG to 12.5% versus 10% earlier and STCG to 20% versus 15% earlier. According to JM, HDFC AMC, Nippon Life Asset Management India (NAM) and UTI AMC are potential near-term fallouts.
3) Real Estate The withdrawal of indexation benefits is a negative for the real estate stocks, Macquarie noted. The view is also endorsed by JM Financial Institutional Securities.
Finance Minister Nirmala Sithraman on Tuesday announced reduction in long-term capital gains (LTCG) on property sales from 20% to 12.5% along with the removal of indexation benefit, which adjusts purchase price for inflation and reduces taxable profit.
As per JM's calculations, the new LTCG regime will increase the cost of holdings by 2-3% with impact varying across micro-markets and time periods. It has named stocks like DLF, Macrotech Developers, Prestige Estates among potential losers along with listed REITs.
4) Infrastructure
While the government has
