'Govt should focus on getting investment in infra, housing'

As the Modi government enters its second year in office, it should focus more on getting investment in infrastructure and housing sectors, JM Financial has said.
"The most important thing that Prime Minister Narendra Modi can and should do in his second year is to find more source for both domestic and overseas funds. One way to achieve this is to give big tax breaks to infra bonds.
"Let public savings flow to infra sector as 90 per cent of PPPs are in trouble. Also, the government itself should increase its spends on infra as impact of housing and infra (sectors) on the economy is very large," Vishal Kampani, Managing Director and Chief Executive, Institutional Securities Group at JM Financial told PTI.

Rating the Modi government's first year in office as "overall positive", he said criticism of not doing enough is not justified.
"Expectations were too high. I don't think government's only job is to meet the expectations of the businesses. It has to play a larger role and manage the expectations of the nation as a whole," he said, adding that the PM should be given at least two-three years.
Despite falling inflation, consumption is not picking up, he said and warned that it may take a few more years.

Though tax is a touchy issue, the market over-reacted to the MAT notices, he said.

The recent market correction is a blip, and it will come back, said Kampani.
Most of the large foreign brokerages like HSBC, Citi, UBS have trimmed their market outlook post the MAT controversy last month.
While UBS cut its Nifty target to 9,200 from 9,600, Citi trimmed its Sensex target from 33,000 to 32,000.
HSBC's has been the deepest cut with its Sensex targets being at 26,900 from 30,100 by December.
However, British brokerage Barclays has maintained its Nifty target at 10,219 on hopes of more reforms.