TOBACCO SECTOR: In this year’s union budget’16 the finance minister proposed 10-15% excise duty hike on most tobacco and tobacco related products which is negative for cigarette manufacturing companies. After the announcement Cigarette stocks burn, ITC and Godfrey Phillips slump over 4 per cent but it seems a temporary effect as the consumption of cigarettes in India is no less than daily consumption of food by the adult population. There is going to be a sea-saw ride for these companies only7 for some time.
Stocks to watch out for: ITC, Godfrey Philips, VST Industries
FOOD PROCESSING: Govt. announces 100% FDI in the food processing industry which will boost capital inflow and consolidation of the sector which would increase the export of Basmati rice that have a demand worldwide.
Advantage: Ruchi Soya, LT Foods, Kohinoor Foods and KRBL.
EDUCATION SECTOR: To set up 1500 multi-skill development centers countrywide this will facilitate private educational companies to get into PPP mode.
Watch out: MindTree, NIIT among others
ENTERTAINMENT & TRAVEL SECTOR: PVR, INOX Leisure, Wonderland Holidays, Cox and Kings, Thomas Cook India.