As Budget Day approaches, here's what domestic and foreign brokerages are banking on. Analysts say markets could fall 5-10% if Budget disappoints.
What We're Budgeting On: The Union Budget for FY21 will be unveiled by Finance Minister Nirmala Sitharaman on February 1st and domestic and foreign brokerages are hoping for credible steps to prop up sluggish growth and relief for taxpayers and businesses. From fiscal discipline and prioritising investment to cutting personal income taxes and improving long-term efficiency of the economy, here are some of the key things on the wish list of leading brokerages.
Bated Breath: This year's Budget will be a closely watched one. The economy is struggling through a slowdown that has plagued all sectors and GDP growth is at a six-year low. As such, possibilities of a fiscal stimulus are high - and banked upon.
How expectant are markets? In the past decade, on Budget Day, markets reacted by either falling c. 1% or rising by about the same amount. In five of the ten years since 2010, the bulls took control of D-Street, but the range of market reaction hovered around 1%. This time, though, analysts say if the Budget disappoints, Nifty could register a 5-10% fall. Moneycontrol
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