Andrew Holland, CEO, Institutional Equities, Ambit Capital discusses Budget and markets with Rajesh Bhayani post the Economic Survey.
What do you expect from the Union Budget, post the Economic Survey?
I am not expecting anything significant from the Union Budget. Budgets are mostly about revenue and expenditure of the government. While many believe that the finance minister might roll back some of the excise duty cuts, we don’t think so. Any rollback will only put further pressure on the inflation which the government cannot afford. One worry on the budget front is the fiscal deficit. However, if the GDP growth is faster, the fiscal deficit numbers will come under control.
How do you expect the market to behave after the Budget?
Markets are not seeing the Union Budget as a big event. This is a disappointment. I believe the Budget will have a neutral to negative impact on equity markets. Foreign investors want to see how India attracts foreign direct investment and implements reforms. But nowadays no one waits for the Budget for such measures. More than local, the global cues will have a sharper impact on the Indian market.
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