Budget didn't meet market expectations: Religare MF

Mr Saurabh Nanavati, Chief Executive Officer, Religare Mutual Fund

The market had huge expectations from the budget. Therefore post the 17% rise in one day post the election results, the markets are now correcting in line with the operating fundamentals.

Think through this:

a) In tough times, people need cash money in their hands to decide on the area they want to spend on - the FM has reduced tax surcharge and given money in their hands.

b) The core sectors from a long term India story perspective are the rural / agri sectors and the infrastructure areas. The budget has again been very generous in these areas.

What the FM has lacked is better Selling / Marketing skills in presenting the budget which is  unfortunately what the market is focused on.

This is a good, stable budget - nothing reformist - but in the right direction of reducing complexities and taking incremental steps towards taking the country's GDP back to 8%+ levels.

Let's empathise with the FM's tough position of balancing growth and fiscal discipline. Its time for the industry to get back to work, improve productivity and implementing at the ground level. That will result in sustainable growth, not a budget speech.