How Budget affects your stocks: Sectoral analysis

What the Budget does

* Exemption from customs duty on specified parts of set top boxes and specified raw materials for use in the IT/ electronic hardware industry.
* Reduction in customs duty on convergence products from 10% to 5%.
* No change in the corporate income tax rates.
* No change in the rate of surcharge and dividend distribution tax.
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Impact on sector

* The exemption of customs duty will bring broadcasting equipment like set top boxes on par with rates applicable on telecom equipment and provide a fillip to the DTH industry that uses set top boxes.
* It will also encourage domestic production of set top boxes.