Budget- Boost or Fizzle?

I had prepared myself assuming that the FM will dole out some interesting stimulus roll back plan along with a direction to the economy. Well, I presume most of you share my dissappointment.

Mr FM, everyone can target a lower fiscal deficit and a higher GDP.. 'bolne mein kya jaata hai?' How will you achieve it is the key issue. And what about Inflation???

But the FM did one good thing - he reduced the tax outgo of most of us. For that I must thank him.

Well the market's reaction was more or less predictible. The moment the FM said that the fiscal deficit projected will be 5.5% , the markets starting the fireworks! I only hope the 'Market' has considered the fact that the Govt has conveiniently changed the Base year for computing the GDP to 2004.



Technically nothing much changed today except for the intraday volatility. The level of 4800 Nifty now becomes crucial for the markets - If you are long in today's euphoria , keep that as your SL.

Happy Budget crunching!

By the way, in case you happen to be in and around Baroda, I have organised a presentation on "Impact of Budget on Markets" tomorrow (Sat) between 4 to 6pm at the Academy. Please register your name as there are limited seats.

CA Rajiv D Khatlawala
ValueTrade Academy
www.investogyan.com