Posted at 10:52 AM , on February 2, 2017
While the broad theme of the Union Budget focused on putting more money in the hands of the people and giving a push to rural incomes, the budget also had important provisions for other areas like Infrastructure, Financial Markets, Fiscal discipline etc There were some key announcements pertaining to the Financial Markets with the broad goal of making these markets and financial institutions more transparent and effective in discharging their role… Continue reading
Posted at 11:42 AM , on January 2, 2017
Is it a good idea for the Indian economy?
In his speech at Mumbai, the prime minister hinted at taxing capital market profits. While the exact contours of the plan are not available, there are a variety of possibilities. More importantly, what are the arguments for and against taxing the capital markets? And will it really work in practice? Continue reading
Posted at 10:56 AM , on March 8, 2016
Why are the equity markets so thoroughly impressed?
On the day the Union Budget was announced, the Nifty touched a low of 6850. Interestingly, in the next 4 days, the Nifty bounced back nearly 650 points to close within kissing distance of the 7500 mark. This post-budget market rally is, perhaps, the best rally that we have seen in the last 10 years. In a budget that has been described as pro-rural and anti-rich, what has enthused the equity markets so much? Continue reading
Posted at 5:54 PM , on February 9, 2016
Four themes that could drive the Union Budget exercise…
As the market prepares for another Union Budget on February 29th, the question is what can the economy and the markets expect? This will be Jaitley’s third consecutive budget and hence expectations will be high. While specifics may be hard to predict, we believe that there will be four broad themes that could form the theme of the Budget. Continue reading
Posted at 7:16 PM , on March 9, 2015
That is a question that is on the top of everyone’s mind. How will the rating agencies react to the Union Budget? Will they consider a favourable rating upgrade post the budget? These may be early days but the initial response to the Union Budget was that the rating agencies were disappointed. Most rating agencies would have required clarity on 3 fronts viz. Growth & infrastructure, fiscal responsibility and global vulnerability. One can argue that at 7.5%, India is the fastest growing large economy. In fact, by 2016 India’s growth rate will surpass China also. But, there other statistics that are revealing! In terms of GDP per capita, India ranks below nations like Bolivia, Bhutan, Georgia, Swaziland, Angola and Paraguay. If you look at literacy within BRICS, India is still at 74%, while other BRICS nations are above 95%. That is a long way to go… Continue reading