A slightly higher deficit number will not be taken negatively by market

Reduction in surcharge (capped at 15 per cent) on long term capital gains - is positive from financial markets

Over the past few years, the relative importance of the Union Budget from a financial market standpoint has been reducing, as various important decisions and initiatives are being taken outside the Budget. This year's Budget continued the growth impetus laid in the last year's budget by focusing on the 'quality' expenditure, growth and all-inclusive welfare.

Rather than taking a populist bend (which was widely feared as we get into several State Elections), the government rightly preferred to provide the growth stimulus by focusing on Capex and increasing the outlay by a healthy 35 per cent to Rs 7.5 trilion.