This Union Budget drafted by Finance Minister Pranab Mukherjee is
India’s 81st budget and was present amidst loads of anticipation. The
Sr. Vice President from the Research team at Kotak Securities Mr. Dipen
Shah shares his opinions and analyzes the budget accurately from his
perspective. With the fiscal deficit to be targeted at 5.1% of GDP, the
budget commenced with a pragmatic approach. The excise duty mounted by
2% just as it was prophesied by him.
Further, it requires serious follow–up and loads of investigation to
attain this Fiscal Deficit number though. With the shrinking of subsidy
rates at present and further cutting it down, the burden might ease to
a small extent at least. The present scenario can be fixed with the
introduction of administrative and procedural reforms. According to
him, it may also benefit the private sector with the operating
environment turning out to be more productive.
He also states that it is with the implementation of all these initiatives that the private sectors may gain hope and switch to investing. The hike in import duty of gold may enable the Government to restrain the current account deficit. The pin down in the current account deficit will enable us to resolve the present financial problems that the country is undergoing. Also this additional revenue created may slacken off the pressure on Indian rupee.
The reforms introduced surely present an optimistic view with the budget supporting growth and development. The initiatives catering to consumption related activities along with intensifying the public sector investments. Also, the private sectors are expected to benefit from the administrative reforms that will phase in over due course of time.
Though the STT (Securities Transaction Rate) has reduced below the expected lines i. e. a 20% cut, it may surely lessen the transaction cost marginally. The Budget announced that the Rajiv Gandhi Equity Saving Scheme (RGESS) may permit 50% tax deduction for the first time investors. However, the implementation of this scheme will need clarification regarding its functioning.
With the market expected to remain range – bound, it would be recommended that one opts for a bottom-up approach at this period of time.
About Kotak Securities: - Kotak Securities is one of India's leading stock broking firms offering stock trading, mutual fund and IPO investing service's along with a research division specializing in Sectoral research and Company Specific Equity Research
source:topnews.in
He also states that it is with the implementation of all these initiatives that the private sectors may gain hope and switch to investing. The hike in import duty of gold may enable the Government to restrain the current account deficit. The pin down in the current account deficit will enable us to resolve the present financial problems that the country is undergoing. Also this additional revenue created may slacken off the pressure on Indian rupee.
The reforms introduced surely present an optimistic view with the budget supporting growth and development. The initiatives catering to consumption related activities along with intensifying the public sector investments. Also, the private sectors are expected to benefit from the administrative reforms that will phase in over due course of time.
Though the STT (Securities Transaction Rate) has reduced below the expected lines i. e. a 20% cut, it may surely lessen the transaction cost marginally. The Budget announced that the Rajiv Gandhi Equity Saving Scheme (RGESS) may permit 50% tax deduction for the first time investors. However, the implementation of this scheme will need clarification regarding its functioning.
With the market expected to remain range – bound, it would be recommended that one opts for a bottom-up approach at this period of time.
About Kotak Securities: - Kotak Securities is one of India's leading stock broking firms offering stock trading, mutual fund and IPO investing service's along with a research division specializing in Sectoral research and Company Specific Equity Research
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