Cement

The big boost for cement companies would come in the form of increased infrastructure spending and, incentives to the housing sector and rural India. This would help improve volumes and prove to be a boon, given that large capacities are expected to go on stream (over two years) possibly leading into an over-supply situation.

The industry is also hoping that the VAT rate will be lowered in line with other sectors, while a uniform rate of excise duty should replace the current MRP-based system. While such measures would be positive for companies, analysts don't expect the duty cuts or rationalisation to happen.

In fact, analysts at Angel Broking expect the government to increase excise duty from 8 per cent to 10 per cent, as cement companies have not completely passed on the benefits of excise duty reduction announced in April 2009.