Markets, expectations steam forward

Analysts expect fiscal stimulus from Budget, through higher spending as well as reduced taxes

With equity markets rallying eight per cent in the past month, expectations are high from the Union Budget. Analysts are expecting a fiscal stimulus from Finance Minister Arun Jaitley, through a combination of higher spending and lower taxes. The markets will also be eyeing the measures to counter the potential slowing caused by demonetisation, they say.
 
“The market, very logically, expects a fiscally stimulative Budget. For political and economic reasons, the government has to attempt to mend issues created by the demonetisation,” says Sanjay Mookim, India equity strategist at Bank of America Merrill Lynch.
 
Bharat Iyer, India equity