Business personnel’s to gain from the Budget
On Thursday as the Budget halted shortly after announcing measures to better big-bang issues and increasing measures to support growth, Indian equities felt more than their initial share of volatility. The budget spoke about the Centre’s commitment to fiscal prudence. The tug of war that existed between the bulls and bears was finally won by the latter, only after the sensex points raised to 800 points in between the day.
The first half of the budget was dominated by the bears, while the decision to keep up with the status quotient on old taxation rules haunted the Street. Few of the key positives from the perspective of market watchers were- the road map for fiscal consolidation – FY17 fiscal deficit target of 3 percent, increment in FDI in the field of insurance and defence to 49 percent, clarity of taxes on REITs and promise of DTC and GST over next year.
Rajesh Cheruvu, chief investment officer of RBS Private Banking stated that foreign flows are seemingly going to improve with the FM raising the FDI limit in the field of defence and insurance. Also levying capital gains tax on FIIs instead of business income tax rate will definitely encourage external flows and help in bringing down capital cost.
Source: The Financial Express
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