View on Interim Budget - Mr. Dinesh Thakkar - CMD, Angel Broking

Views of Mr. Dinesh Thakkar (Chairman & Managing Director, Angel Broking) on Interim Budget:

"The fiscal deficit for FY2014 has been positively reined in at 4.6% of GDP vis-à-vis market expectations of 4.8% of GDP. At least in the interim budget, the Finance Minister has estimated the fiscal deficit target for FY2015 at 4.1% of GDP presuming higher GDP growth and tax buoyancy but it remains to be seen whether the estimates are unchanged by the new government that comes to the helm over the over the coming 2 - 3 months. The market borrowing program is estimated to be slightly lower than market expectations and that is likely to be positive for yields at least in the near-term. Excise duty cuts have been announced for sectors facing the major brunt of the slowdown and hence the cuts for automobile production are positive for the automotive sector and for capital and consumer durables goods production spells good news for the manufacturing sector. Going ahead, I believe that the general elections over the coming 2 - 3 months are likely to take centre-stage for equity markets and their outcome would be crucial for determining market direction."

Source : Equity Bulls

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