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Two stock market experts discuss their wishlist for Union Budget 2017 with Aslam Hunani/Rediff.com.
Deven Choksey, managing director, K R Choksey, a Mumbai brokerage firm.
What are your expectations from Union Budget 2017 for the stock market?
The stock market is definitely wanting to see some profound reforms which could possibly come (in this year’s Union Budget). The reforms can be in the areas of direct taxes; these may include personal tax like removal or concessions and at the same time this would mean a lowering of income tax rates, so more money is left in the hands of individuals for spending as well as for saving purpose.
I think this could drive the economy to a higher growth level and the stock market would be happy with it if it happens.
Do you have a Budget wishlist?
1. Implementation of indirect taxes reforms, which are out of the purview of the Budget now; but that is definitely finding mention in the Budget
2. Bringing direct tax reforms to phase out personal income tax, and stay focused on two taxes in the country, that is, goods and services tax and corporate tax.
3. Giving a thrust to the infrastructure-related growth and improving upon ease of doing business further.
What sectors should investors focus on before the Budget?
My investments never happen because of the budget, honestly. I look at the business, its ultimate strength and put my money into that business; so honestly, for the sake of Budget or for budgetary proposals, that doesn’t mean anything.
The company's business would be more important beyond the Budget itself, which helps in the long run.
Ambareesh Baliga, Independent Market Analyst.
What are your expectations from Budget 2017 for the stock market?
Infrastructure sector has to be given a major boost for this is the only sector which can kickstart the economy and other sectors like auto.
The major issue is the funds for the infra sector, for the government doesn’t have much funds to invest.
It is a different thing to announce the Budget, but on the other hand, the government will need international long-term funds to get the sector going.
Your budget wishlist?
Infrastructure sector needs a big boost, and clarity on how various big-ticket infra projects will achieve financial closure.
The domestic area where we can move in fast is housing and construction. I am expecting further boosts for affordable housingswhich should also include sops for the economically weaker sections.
These two sectors will ensure enough employment is generated and ultimately provide a boost to the Indian economy.
Demonetisation was a sentiment spoiler, so I think there should be enough sops for the common man so that he ends up getting more than what he has been spending in last two months, so that spending is brought back to normal.
I am looking for some tax sops in the form of direct taxes and tax benefits in the affordable housing segment.
What sectors should investors focus on before the Union Budget?
Sectors to focus on before the Budget will be housing, cement and related ones like automobiles.
Complete coverage: Union Budget 2017