Budget - Bring it on - IIFL

The day has come when the finance minister will rise up to present, what is possibly the last budget of the reigning UPA government. The cues are positive for now and expectations have overnight risen sky high. Chidambaram has been talking of a responsible budget for some time now and investors would look for some tax reform, fiscal consolidation and economic growth.

On Wednesday the market saw a sharp rebound. With F&O expiry today and the big Budget in store no point in discussing levels for now. Expect a firm opening with the market taking off as the budget speech begins. Any disappointment could result in panic but looks like the FM will have enough in his bag to keep investors happy. GDP data for the December quarter will also be released today.

According to the Economic Survey, GDP growth is set to pick up to anything between 6.1% and 6.7% in 2013-14. Wholesale price inflation will fall to 6.2-6.6% by March despite hike in diesel prices and higher rail fares and freight rates, and the mediumterm price trend is distinctly downward, especially for nonfood manufactures.

Source : Equity Bulls

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