MUMBAI (TIP): India‘s annual budget is one of the nation’s most closely watched events-not just for the numbers, but for the political message during a speech that runs for about 90 minutes.

The thrust of Feb 1 speech by finance minister Arun Jaitley for the fiscal year starting 1 April was on rural and infrastructure spending after advisers warned of a steep slowdown triggered by Prime Minister Narendra Modi‘s cash ban. Here are the winners and losers.

Winners

FARMERS: Pledges a record agricultural credit of Rs10 trillion by the fiscal year through March 2018; Rs48,000 crore allocated for its rural job guarantee program; electrification of villages. Companies that may benefit include tractor makers such as Mahindra & Mahindra Ltd.

REAL ESTATE : Proposes extension of affordable housing program to five years; gives the sector infrastructure status. Plans to also lower holding period for taxing capital gains on sale of immovable property to two years from three. Shares of DLF Ltd, Godrej Properties Ltd and Oberoi Realty Ltd could be affected.

CONSUMER GOODS AND AUTOMAKERS: Jaitley proposed cutting the tax rate for people with income of between Rs2,50,000 and Rs5,00,000 to 5% from 10%, leaving more cash in the hands of consumers to spend more on toiletries, household goods, cars and two-wheelers. Shares that may be affected are ITC Ltd, Hindustan Unilever Ltd, Marico Ltd, Maruti Suzuki Ltd and Hero MotoCorp Ltd.

BANKS: Government proposes to inject at least Rs10,000 crore of capital into state-owned lenders and provide additional capital. Also proposed increasing allowable provisions for bad loans. Stocks involved include State Bank of India, Bank of India, Bank of Baroda.

FIBER OPTICS: The budget allocated Rs10,000 crore to lay fiber optic network covering 150,000 villages.

INFRASTRUCTURE: The outlays here may aid stocks such as Larsen & Toubro Ltd., Hindustan Construction Co., and IRB Infrastructure Developers, as well as Electrosteel Steels Ltd. and Aegis Logistics Ltd.

Losers

DRUG MAKERS: As part of the rural focus, government proposes to amend rules governing pharmaceuticals to help lower prices, make healthcare affordable and encourage generics. Stocks affected include Dr. Reddy’s Laboratories Ltd and Sun Pharmaceutical Industries Ltd.

CIGARETTE MAKERS: An increase in the excise duty on cigarettes by 6%, as well as boost in the levy on cigarettes made with tobacco substitutes, may affect companies including ITC and Godfrey Phillips India Ltd.Bloomberg