Incentives to infra sector high likely: Fairwealth Sec

According to the Fairwealth Securities, in the coming Union Budget on July 6, incentives to infrastructure sector are high likely as it will have huge multiplier effect on the economy.

Fairwealth Securities report on Union Budget

Government will unveil its Full fledged budget on 6th July, with a tough task of balancing, its fiscal deficit on one hand and taking liberal measures by keeping industry promises and higher spending on social sectors.

While industry experts are suggesting that budget might not match up to the expectations of the industry. Absence of pre-budget rallies and June corrections, are paving a way for a potential upside for the markets over next 2 months.

We expect this Government to continue to announce incremental fiscal policy measures aimed at specific vulnerable sectors and
a fiscal stimulus to be announced next year to offset the fall in private investments in financial year 2010.

Also statements by top leaders of having control of Fiscal deficit, higher IIP number and current account surplus data for April and May (thanks to lower petroleum and Fertilizer prices) will act as economic support for the markets.

Expectations from Budget - Incentives to infrastructure sector are high likely as it will have huge multiplier effect on the economy.

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To read the full report click on the attachment.....