Budget 2021: Policy action on the ground key for sustained market rally

A turnaround in domestic sentiment is vital to sustain this rally. For that, we'll need to see policy action on the ground.

The market response to the Budget was positive, partly due to the fact that no new taxes were imposed. There was also appreciation for some policy measures. Budget 2021-22 has a strong focus on infrastructure creation, with many new roads projects announced, big allocations for urban waste management and water supply, and urban transport solutions.
 

Infrastructure asset monetisation could help to ease stressed finances in the sector. Infrastructure creation inevitably means construction, and that in turn means employment opportunities, as well as higher offtake of commodities such as steel and cement.
 

The establishment of a development finance institution to handle