According to Dipen Shah, Sr. Vice President - PCG Research, Kotak Securities, Budget has been along expected lines on most fronts.
Dipen Shah, Sr. Vice President - PCG Research, Kotak Securities
"The Budget has been along expected lines on most fronts. It has delivered on our expectations of increased spends on infrastructure as well as on agriculture/rural areas. Also, the fiscal deficit has been projected at 3.2 percent, which is in line with our expectations of 3.4 percent. The Budget has provided relief to lower income assesses by reducing tax rates in the Rs 2.5 lakh – Rs 5 lakh bracket.
For the markets, the fiscal deficit of 3.2 percent is positive as it means interest rates can be lower further during the next fiscal. Also, absence of any changes in capital gains tax is a positive as these apprehensions have been erased. Focus on markets will now shift to the global factors and the remaining quarterly results."