Budget did little to solve CAD: HSBC Securities

Chat with Jitendra Sriram, Director and Head of Research (India), HSBC Securities

Jitendra Sriram, Director and Head of Research (India), HSBC Securities says,"Overall, it was a well carried out Budget and has taken steps in the positive direction. Just that I would have liked to hear more on current account deficit side."

Government maintained a fiscal deficit target of 4.8% for the fiscal year 2014 in the Union Budget and increased spending on social schemes. Markets, however, tanked with Nifty slipping over 100 points after Finance Minister ammended the 90A of Income Tax policy.

"Actually, markets were expecting two things. Mega reforms from the Union Budget was one of them but I think government had already announced reforms in mid-September last year and Budget was clearly not an agenda to do that. The second and the major think that caused disappointment was the Mauritius taxation issue and that had bigger sentimental impact."