Markets will boom
COMMENT/ Andrew Holland, Executive V-P, Research, DSP Merrill Lynch
| If one reads between the lines, sectors of the economy related to infrastructure such as power, roads, agri-processing and related areas will see faster growth rates. |
| When all these factors are taken into consideration, they will have a positive impact on GDP growth. We anticipate higher GDP growth rate than was projected earlier. |
| A reduction in the fiscal deficit this year and is a positive indication for maintaining disciplined fiscal management. The markets were not expecting any big announcements and this is reflected in the budget, which makes minor adjustments while ensuring continued stability with no surprises and no changes. |
| With the likelihood of GDP growth forecasts being raised towards 9 per cent, India Inc's earnings growth is likely to follow suit and could well move towards the 20-25 per cent range. If this proves correct, then the current stockmarket valuations look reasonable and the Sensex touching 12,000 is within reach. |