The tax cuts would be positive for the Indian corporate as a whole but few sectors could benefit immediately from the tax cuts.

· The fast moving consumer goods *FMCG) segment is likely to be one big beneficiary of these tax cuts. The initial estimates are that the FMCG space will save nearly Rrs.2000 crore in the form of tax saved. This will directly add to their profits. Also such tax cuts are likely to be passed on to the consumers in the form of price reductions and could boost the demand for FMCG products. This is the sector to watch for.

· The second sector to benefit will be the auto sector, and we already saw signals of the same in Friday trading. The sector has been facing weak demand and low production for almost 1 year now and this tax cuts is likely to positively impact most of the auto stocks that are high tax paying candidates. Two wheelers and consumer automobiles could benefit from this move.

· Lastly, this is a major boost to the banks. Most banks have been struggling due to weak credit off take. The 15% tax for new manufacturing will be a big incentive for expansion and that will directly translate into higher demand for industrial credit and banks will be able to productively improve their credit / deposit ratio.

Overall, some of the beleaguered sectors are likely to benefit from this tax cut.