India Budget 2018
Budget 2018 has focused on agriculture and rural economy, health, infra, senior citizens and aims to work towards improving living standard in India. FM Jaitley has tried to deftly balance economics with politics. Rural focus would lead to alleviation of rural distress, while urban populace may have a mixed reaction on budget. LTCG exemption was an attraction for new investors into equity/equity mutual funds and brought funds from other low paying avenues. Rising interest rates domestically and tax on LTCG could result in minor reversal of this trend. Reaction of FPIs and the bond markets locally to the 3.3% fiscal deficit proposed in FY19 will be keenly watched in the background of rising rates abroad.
Dhiraj Relli is the MD & CEO at HDFC Securities