While industry will be looking for tax sops, economists would keep an eye on fiscal math. Investors, meanwhile, will watch out how effectively Jaitley trade between pro-poor and pro-market choices.
As the Budget 2016-17 draws near, investors have started building expectations on a slew of likely reforms and announcements from the mega event, which could prove pro-investment and revive earnings of India Inc – a pre-requisite for the market to come out of the bear hug.
There are widespread concerns over US Fed rate hikes, yuan devaluation and lack of steps taken by Bank of Japan (BoJ) and European Central Bank (ECB)to revive the regions. While India is seen to be in a sweet spot, given the falling commodity prices, earnings revival is yet to kick off in this part of the world.
As such all eyes have shifted to the Finance Minister Arun Jaitley, who on Sunday promised to come up with banking reforms, other than key announcements in his third Budget, to give a fillip to the economy.
“While a small slippage may not be viewed negatively, any adverse comment to rein in the deficit will have an impact both on bond and equity market investments by foreign institutional investors (FIIs),” told Shrey Jain, Founder and MD, SAS online.com to Business Today online.
