Good or bad Budget? 5 things that matter most for Dalal Street
SECTIONS
Share
Synopsis
Here are five things that would rank high on investors’ minds as we head into the Budget.
Getty Images
Dalal Street has its own set of expectations. Investors want no tinkering of taxes levied on equity and equity mutual funds and are looking to a fiscal deficit target in the 5-6 per cent range.
NEW DELHI: Finance Minister Nirmala Sitharaman has promised a ‘once-in-a-century’ Budget for FY22 and hopes are running high that the government would support the fragile economic recovery with various sectoral sops and tax reliefs that can set the stage for India to log strong double-digit growth in FY22, albeit on a low base, and beyond.
Institutional Equities.
After this week’s turbulence, is the market giving good entry points now or should one still wait it out?
After a parabolic move where the index has doubled from the bottom that we saw in March of 2020,a 6%-7% correction is not even par for the course. A 10-15% correction is probably something one should anticipate in any kind of equity market. The structural bull market of 2003-2007 saw 20-25% corrections. So 7% correction is hardly anything but the runup means that a lot of good news is priced in. The earnings are going to jump up by almost 35%-45% in FY20 and the index level is broadly priced in.