Downside is certainly capped: Dilip Bhat

Dilip Bhat, Director, Prabhudas Lilladher Group talks to Puneet Wadhwa on the raod ahead for the markets post Budget and the likely targets for the benchmark indices for 2010.

How do you rate the recently announced Union Budget proposals? Any sectors which should have got more priority?
 
The Union Budget proposals are just what the markets were looking for. Among the proposals, the most important was the road map for a fiscal discipline and handing out of tax reliefs. But while addressing these issues, the cut in growth of government expenditure and partial roll back of excise benefits may impact overall GDP growth and/or impact modestly the companies’ performance.
 
Inflation will need to be tamed which may not necessarily be market or economy-friendly. Also, the Budget makes a big assumption that private sector will step in adequately and agriculture growth should be around 4 per cent if GDP targets are to be met.
 
I think auto, real estate and white goods sector will be major beneficiaries of the tax reliefs. Infrastructure will get the much awaited push both policy-wise and Budget layout wise. Banks will be other beneficiaries of lower government borrowings and higher GDP expectations leading to higher credit growth.

Click here to read the full interview.