Budget gives NBFCs fillip for boosting consumption over medium term

Lenders have been cautious on developer loans following the liquidity crisis that plagued markets after September 2018

Expectations were high from the Union Budget, particularly on consumption-related sops, from the finance minister. These hopes, however, were left dashed as stimulus seemed near-absent — whether on the rural economy front or on incentives for the urban middle class. 

Both have a significant role to play in reviving consumption sentiment and corporate earnings. Saurabh Mukherjea of Marcellus Investment Managers said single-digit earnings growth is something the markets need to be content with in FY20, for the seventh year in a row. “Relevance to economy was quite modest in the Budget,” he added. 

The notable relief was in the affordable housing segment,