Present

Associate Sponsors:

Sector Sponsors:

Moneycontrol
Presents Budget 2019

Associate Sponsors

Last Updated : Feb 01, 2019 04:45 PM IST | Source: Moneycontrol.com

No 'over-populism' by the government in Budget 2019 comforts D-Street: Amar Ambani

As an interim Budget, I would surely give it a thumbs up, especially given the paucity of time for the incoming Finance Minister, Piyush Goyal. Rating - 4 on 5.

Kshitij Anand @kshanand

The single biggest fear that the stock market had was ‘over-populism’ by the government, leading to a significant deviation from the fiscal roadmap. The government did announce sops for farmers, middle class and small businesses, but slipped on the fiscal deficit front — by 10 basis points only, Amar Ambani, President, and Head of Research, Yes Securities, said in an interview with Moneycontrol’s Kshitij Anand.

Edited excerpt:

Q) Your first reaction on the Interim Budget?

A) All pre-election budgets are expected to be ‘populist’ in nature. Therefore, the single biggest fear that the stock market had was ‘over-populism’ by the government, leading to a significant deviation from the fiscal roadmap.

However, that did not materialize, if the government achieves its stated figures.

The government did announce sops for farmers, middle class and small businesses, but slipped on the fiscal deficit front by 10 basis points only.

A fiscal deficit of 3.4 percent for FY19 and a similar target for FY20 is reasonable and acceptable to the market, in my opinion. Even at these levels, our deficit as a percentage of GDP is at one of its lowest levels seen in last three decades.

Q) Do you give a Thumbs up or Thumbs down? Also, your rating from 1-5 (5 being the best) for the Interim Budget.

A) As an interim Budget, I would surely give it a thumbs up, especially given the paucity of time for the incoming Finance Minister, Piyush Goyal. Rating - 4 on 5.

Q) Top stocks which emerged as winners on the Budget Day and why?

A) Stocks in the automobile space, durables, other discretionary and certain consumer-financing companies are winners.

The structural boost to consumption through additional income to farmers through Rs 75,000 crore package, 2-5 percent interest subvention on loans to animal husbandry, tax rebate to middle-class up to Rs 5 lakhs of income, increase in standard deduction limit by Rs 10,000, removal of notional rent from 2nd self-occupied home, roll-over of capital gains benefit for two homes and increasing TDS limit to Rs 40,000 from Rs 10,000 for small savings are all big positives.

Q) Top stocks which emerged as losers or which are likely to get negatively impacted by Budget proposals and why

A) I didn’t find any big losers on account of Budget announcement. After a Budget day, individual stock movements will become a function of events and results in performance rather than Budget.

Disclaimer: Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Feb 1, 2019 04:45 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant