Budget 2016: Infra, rural push may boost core sector

An increased outlay for infrastructure at Rs 221,246 crore, social economic programmes and rural push could have a beneficial effect on companies in the cement, steel, consumer goods and automobile sectors.  Indian stock market astrology prediction
Consumer goods companies get 30-50 per cent of sales from rural India, where demand has been hit by consecutive years of deficit rain. Core sector companies have seen volumes drop to single digit in the first nine months of FY16. "The Union Budget is rightly focused on rural and infrastructure sectors. The planned investment in these will create jobs and give impetus to demand generation and growth," said Krish Iyer, president and chief executive officer (CEO) of Walmart India. (MIGHT  IN MAKING)     Jackpot Stocks Trading Tips
Cement companies say the Budget will help their demand, with the higher allocation to roads, highways and affordable housing. "With 85 per cent of road projects coming back on track and 50,000 km of state highways to be taken up for upgrade as national highways, we expect a boom in demand for cement. Besides, the focus on giving a boost to the rural economy through agriculture and related sectors will give rise to demand in the long run," said Amandeep, CEO at OCL and Dalmia Cement.    Commodity Market Astrology Tips

Steel companies, facing both lower prices and cheaper import, will also benefit. Infrastructure projects would require more steel. Similarly, the rural push could aid demand for tractors and consumer products. "The government is continuing the rural focus, looking at enhancing allocation to MGNREGS (the rural job guarantee), beside focusing on skill development for the populace. These would help promote entrepreneurship, add jobs and put more disposable income with the rural consumer, ensuring continued rural demand for branded consumer goods," said Sunil Duggal, CEO at Dabur India   Nifty Trading Tips