Post Union Budget reaction - Mr. Abnish Kumar Sudhanshu, Amrapali Aadya Trading & Investments

We rate the budget as 'No Bad news is good news'. Modi government budget focus remained more on the growth of rural India keeping the fiscal consolidation in place and much needed boost to the stalled economic activities post demonetization. Mr Finance minister budget was filled with rural sops to heal wound arises amid demonetization. Moreover, cut in tax rate for SMEs will not only boost the sector but also it will reduce the ongoing stress on the banking system.

Importantly, middle class population being the largest driver of consumption story, also got benefitted by the reduction in tax from earlier 10% to 5%. Demonetization pain for the housing sector can be relieved as several measure are proposed like reducing the holding tenure for long term capital gain making hosing sector as a infra sector and greater emphasis for affordable housing. Overall, it was much needed budget required for the market.

Going ahead, we believe the stock market is likely to cheer Modi Budget from here on. Hence, we expect the companies having more focus on rural India to remain the radar like M&M finance, Coromandal International, Hero Moto etc.

Source : Equity Bulls

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