Budget positive for equity and bond markets: SBI MF

Fiscal deficit at 4.6% of GDP and net market borrowing number for the next year are better than market expectations and will sooth fears of crowding out and sharp spike in interest rates.

Measures on the taxation and spending in key programmes would keep the consumption story intact while some visible moves have been made to push infrastructure build up. The long ranging reforms like roll out of GST, Direct tax code, financial sector reforms, subsidy reforms with better targeting through Unique identification Number will all assist in increasing the growth potential of Indian economy. Though no major surprise, budget should be taken positively by both equity and the bond market. As the event is behind us, the market would now focus on cues from global markets and incremental economic data and corporate earnings.'