D-Street Talk | Not fiscal deficit but quality of expenditure will be important factor for D-Street

Indian market is getting into the Budget with lot of hopes and expectations which could help spur demand in an economy that recorded its slowest pace of growth in the last 11 years.

The big number which investors watch out for is the Fiscal Deficit number but this time it is the quality of expenditure which most investors would be tracking, Rajesh Cheruvu, Chief Investment Officer, Validus Wealth said in a podcast with Moneycontrol.

The street will be focused on the demand revival measures but rural and urban by leaving more money in the hand of the consumer. The other factor which the D-Street will be tracking is the fiscal deficit number, said Cheruvu.

“If the govt decides to shift the goal post (raise the target), investors would be interested in knowing what is the quality of spend. If the spending is more towards investment and infrastructure will be welcomed,” he said.

He further added that if the Govt. decides to defer the fiscal deficit target by 2 years market might not get concerned, but it should not be populist measures. “As long as the spending is not a doll out, markets will take it positively,” said Cheruvu.

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