The Market Moves: Angel Broking

Budget 2019 Reaction by Mr. Mayuresh Joshi (Fund Manager, Angel Broking Ltd)

"The stock markets closed positively amidst the volatile movements witnessed on the Interim Budget day. The broad messaging in the speech was aptly highlighted by the focus on rural India/middle class India along with the prudence reflected in staying put on the fiscal consolidation path. Though there was a minor deviance in terms of reported fiscal numbers for this financial year and the next, the focus in maintaining fiscal discipline without compromising on the long term goals as laid out in the Ten dimensions reflects the effective strategy of the government over the next decade.

With the introduction of the Pradhan Mantri Kisan Sanmaan Nidhi scheme benefiting 12 crore farmers with an annual expenditure outlay of 75000 crs is expected to provide income sustenance to small and marginal farmers, effectively a large part of rural India. Also the benefits of exempting Incomes up-to Rs 5 Lacs shall increase disposable income in the hands of the salaried class. These moves are bound to drive consumption and discretionary spending across the spectrum and though in might happen in small proportions it still is the much needed trigger to boost the consumption patterns of both rural and urban India. The exemptions on second home notional income, the capital gains benefit for 2 houses and the allowance to realty companies to hold inventory for 2 years will be a boost. So, select Bankins, NBFC's/Housing Finance companies, consumption names and select cement companies shall derive long term benefits to come."

Source : Equity Bulls

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