MARKET REACTION(Source : Reuters)
SATISH REDDY, MANAGING DIRECTOR, DR. REDDY'S LABORATORIES LTD.
"There
are no definite proposals for the pharmaceutical industry. There has
been a mention of creating a policy framework to encourage research and
development.
But we will have to wait and see if this intent really translates into
definite action."----
SUNIL
MUHNOT, MANAGING DIRECTOR AND CEO, IDBI CAPITAL, MUMBAI
"There has been a lot of
focus on the agri sector. Food processing has been made into a priority sector
which will result in the availability of credit to it. This sector has been
suffering due to lack of funds."
"Similiarly, the funding to
the tea sector, the jute sector and extending the textile upgradation fund to
the handloom sector means that this segment will have access to more credit and
funds. These are very important announcements."
PATRICK
ARANHA, CHIEF DEALER, MIZUHO, MUMBAI
"The rupee is reacting
positively to the budget. There seems to be incentives that will encourage
foreign investor inflows. It may be that people are expecting funds to come into
the market as a result."
JAYANT PAI,
VICE PRESIDENT, PARAG PARIKH FINANCIAL ADVISORY SERVICES LTD,
MUMBAI
"It looks like a populist
budget. He has said nothing about revenues. Looks like the finance minister is
going to have higher taxes to fund it."
GURUNATH
MUDLAPUR, MANAGING DIRECTOR AT ATHERSTONE INSTITUTE OF RESEARCH LTD.,
MUMBAI
"The announcements so far
have been in line with expectations. The budgetary proposals on infrastructure
and social sectors sound good but one concern is that how will the government
find resources for funding these projects. There could be fresh taxes to
mobilise resources and that could be a concern.
But the 10 percent gross
domestic product target is encouraging and government spending is bound to boost
growth overall."
RAJASHEKHAR
HIRAMATH, DEALER AT FORTIS SECURITIES, MUMBAI
"The best is still to come.
So far he has spoken only about what he is going to give, let us see what he
wants to receive."
A.K. JAIN,
DIRECTOR AT ASSOCIATED CEMENT COMPANIES LTD.:
"The budget looks
positive on the prospects of various measures stimulating cement demand. The
thrust on infrastructure, roads and ports will help the demand for cement grow.
The government's plan to raise GDP growth rate to 10 percent also augurs well
for the sector.
AMIT
RATHI, DIRECTOR, ANAND RATHI SECURITIES, MUMBAI
"On the macro side
it is a positive surprise, as the target for the next year means that the
fiscal deficit will be controlled and this will be positive for the equity
and bond markets in the long term."
"I don't think the
increase in securities transaction tax will have a significant impact on the
market, as the volumes are fairly high now."
RAJAT
KUMAR, HEAD OF FIXED INCOME AT STANDARD CHARTERED BANK, MUMBAI
"The increase in
foreign investor limit on government debt will not lead to incremental
flows, given that the existing limit is under-utilised by almost a billion
dollars.
"Increase in
foreign investor limits for corporate debt will see a temporary drop in
one-year corporate bond yields. However, given the large appetite from local
banks issuing one-year certificates of deposits, this is unlikely to be
sustained.
"On the gross
government borrowing number of 1.53 trillion rupees, the amount appears
large given the prevailing liquidity condition."
RAJAT
JAIN, CHIEF INVESTMENT OFFICER, PRINCIPAL PNB MUTUAL FUND:
"I am really
pleased with his move to lower the fiscal and revenue deficits. It has
become more predictable and that is good when you do not have surprises.
There are moves that could trigger Indians to invest in equities
abroad."
SUNIL
BHARTI MITTAL- CHAIRMAN AND MANAGING DIRECTOR, BHARTI:
"A remarkable
budget. A number of schemes announced. Corporate field, no major hits.
Knowing Mr Chidambaram, am sure he will meet deficit targets."
UDAY
KOTAK, EXECUTIVE VICE CHAIRMAN AND MANAGING DIRECTOR, KOTAK MAHINDRA BANK:
"It is a positive
budget at the macro level ... I think it is a budget for the long-term
investor in the Indian economy and the short-term trader will have to ride
the day-to-day volatility of the markets."
NARAYAN
S.A., MANAGING DIRECTOR AT KOTAK SECURITIES LTD., MUMBAI
"It is a positive
budget with most new proposals in line with capital market's expectation.
The comforting factor, both for the domestic and foreign investors, would be
the finance minister's promise to keep the fiscal deficit under control.
That is very important from the long term prospects of the market.
"There is nothing
in the budget which will hurt the foreign investors. Focus on
infrastructure, power and automobiles is bound to boost consumption."
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