Mahesh Nayak, senior associate editor, Business Today
The stock market was on a roller-coaster ride on Saturday before ending a tad higher, as Finance Minister Arun Jaitley's Budget for 2015/16 fell short of expectations.
The BSE Sensex rose 141 points, or 0.5 per cent, to close at 29,361.50. However, it was not a bad budget. The finance minister presented a balanced budget to boost growth but had his hands tied on spending.
It would now depend on the Reserve Bank of India to cut interest rates to boost growth and investments. "Overall, the budget is reasonable but it has certainly not met the expectations of being a big-bang reform-oriented budget," says C.J. George, CMD, Geojit Financial Services.
Geoge says the biggest positive from the Budget is the proposed law to curb black money. "However, they should not go after people who have legitimate money overseas," he says.
"The market may consolidate from these levels. The budget has not thrown surprises that it will zoom from the current levels," he adds.
- Steps to curb black money.
- Corporate tax down from 30% to 25%.
- Postponement of General Anti-Avoidance Rules (GAAR).
- NBFCs allowed to use the SARFAESI law.
- Taxing the super rich.
- Attracting foreign investment in Alternative Investment Funds.
- No big-bang reform to boost growth and investment.
- Controlling the autonomy of regulator.
- No major capitalisation for PSU banks.
- No cut in commodity transaction tax.
- Increase in service tax to 14%.