From Housing to Airlines: 7 Major Sectors to Receive Favors from Budget 2016

BENGALURU: The Union Budget 2016 has been framed with its prime focus on farmers and poor section of the society. The planning of the annual expenditure is strictly around major sectors affecting Indian economy like airlines, housing finance, and much more. The government has resumed the massive infrastructure development initiated in financial year 2015. Additionally, the government's commitment to fiscal consolidation, despite higher provisions for the social sector, has given a lot of confidence to stock market investors. As reported by The Economic Times, here’s a list of sectors with greater probability to gain benefits out of the Budget 2016.

Housing Finance

According to the budget, for every home loan of first-time buyers with amount less than Rs 35 lakhs, there will be an additional deduction of 50,000. Housing finance companies are likely to get benefits by an anticipated interest rate cut coupled with the deduction. Motilal Oswal Securities insists LIC Housing Finance (LICHF) is well-placed to benefit from these initiatives as almost 70 percent of its customers happen to be first-time home buyers and two-third of its loan disbursements were below the Rs 35 lakhs threshold.

Roads

Roads are the channel for the betterment of transportation industry. In the budget, government has sought to construct 10,000 km of roads over the next fiscal year, upgrade 50,000 km of state highways into national highways and resuming 85 percent of the projects at halt. This outlay has a huge positive impact over the road construction companies such as KNR Constructions, IRB Infrastructure, IL&FS Transportation Networks and Sadbhav Engineering, say analysts.

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