Union Budget 2017-2018 Review: Kotak Securities

FM has projected a 3.2% fiscal deficit for FY18, which looks 'Achievable', with total receipts projected to rise by only 6% YoY. Net tax revenues are projected to rise by 13%. The budget has rightly focused on maintaining the fiscal disciple while maintaining the direction of the economy by allocating higher investments on infrastructure, rural and agriculture sector, to support equitable growth. We expect RBI to cut interest rates by 50 bps over FY18, providing the required support to the private sector investments. Apprehensions on changes in capital gains tax structure have not come and Foreign Portfolio Investors (FPI) have been exempted from the tax provisions governing indirect transfer of assets, which is a relief forthe markets. We expect markets to remain buoyant, if execution matches the intent.Disclaimer: The views and investment recommendations expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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