Post-budget reaction - Mr. Mustafa Nadeem, CEO, Epic Reseach

Budget has been given thumbs up by markets and corporate. It is budget for Gramin and lower middle class which forms majority of India. Their is lot to cheers about this budget with some disappointments but overall direction is clear and if implemented will give major boost to spending and shaping up of rural economy.

All this has been done keeping fiscal responsibility intact is a big boost for the markets. Some of the notable highlights like lowering tax rate to 5% for income upto Rs. 5 lacs will increase the tax net, also the reduction of tax by 5% for corporate with annual turnover of less than 50 crores is again a positive.

The thrust on rural economy by increasing allocation to MNREGA and increasing rural spending will reduce the demonetization impact for poor. The abolition of FIPB is a big plus for economy and clear signal for investors to invest and make in India.Not tinkering with LTCG is again a relief for market given the sign of changes in same from PM. The fiscal deficit target of 3.2% of GDP is very welcoming but is hard to maintain and may be extended at later stage.

Source : Equity Bulls

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