Rail budget progressive not populist: SP Tulsian

Excerpts from Markets Midday on CNBC-TV18 Watch the full show »

Cheering the Railway Budget 2009-10, SP Tulsian of Sptulsian.com, said, he considered this budget to have a revolutionary approach. "We were quite apprehensive that the Railway Budget will be a populist one. However, we have seen quite a progressive approach or I would say the revolutionary approach."

Also read: Rail Budget: Mamata keeps fares, freight rates unchanged

Here is a verbatim transcript of the exclusive interview with SP Tulsian on CNBC-TV18. Also watch the accompanying video.

Q: What's your personal thought of how the markets will react on a) a budget that doesn't come to the expectation and b) if it does, I wouldn't say exceed the expectation, because that would mean we go back to the economic survey as a budget?

A: Yesterday, when I saw the economic survey at least that gave me some relief. We were quite apprehensive that the Railway Budget presented by Mamta Banerjee today would be a populist one. We thought there would be absence of public-private partnership (PPP), technology absorption in the railways and absorption of the idle assets of the railway, which are not properly used. All of that has been put to rest. In fact, we have seen quite a progressive approach or I would say the revolutionary approach.

I am quite hopeful and I have changed my view. I don't expect too much from the Union Budget but at least that depression or may be the nervousness may not be seen. The Prime Minister said that there would be focus on innovative financing scheme because the problem before the government is that of resource mobilization. If they can go for the PPP model, I do not think that there is any dearth of capital.

Q: But has the market factored in these issues because we have not really been with the global markets, we have done our own stuff.

A: The fear was more in the minds of the people and that would probably get removed once you have the budget. So, I see positive things coming from the market's after we see budget being presented on Monday.

Q: If an investor would have to ask you what should I buy before the budget, what would your best guess be?

A: If one wants to play safe I think it is commodity and the infrastructure because ultimately one cannot go wrong in both the sectors. That's because whatever has to come will be positive may be in a mild way. So these two are the safe sectors where one can play.