Budget positive for auto, banking: Saurav Arora

Saurav Arora, Sr. VP, Jaypee Capital Services
 
The markets have taken the budget very positively. The decision to provide licenses to the private players and NBFCs benefitted stocks such as Reliance Capital and IDFC. Provision of Rs 16,500 crore to augment tier 1 capital of PSU banks also proved to be a positive trigger.
 
Other factors which went down well with the markets were the fiscal deficit targets, government borrowing program and implementation of DTC and GST from 1st April 2011. Increase in the excise duty by 2% was in line with expectations and led to a positive movement in auto stocks. And infrastructure stocks reacted positively to the increased thrust on infrastructure.