Quote on Union Budget announcement anticipated in July 2024 by Mr. Aashish P Somaiyaa, Executive Director & CEO, WhiteOak Capital Asset Management
Below the Quote on Union Budget announcement anticipated in July 2024 by Mr. Aashish P Somaiyaa, Executive Director & CEO, WhiteOak Capital Asset Management
“Government has been successful in architecting a prudent Budget that provides capital expenditure support to investments in the economy with Rs 1 lakh cr worth of tax concessions to citizens while continuing the path of fiscal consolidation, bringing estimated deficit in FY26 down to 4.4%.
The budget announcement has come at a time when there are growing concerns of perceived rise in taxation and slowing consumption in urban economics of India. Financial support to weaker sections of society and to women in recent state elections, the announcement of 8th Pay Commission and now restructured individual tax brackets brings more money in the pockets of taxpayers pointing towards prioritization of ushering consumption in the economy. Apart from this the budget announcement outlined some very welcome steps towards ease of doing business, reforms to boost tourism, expanding the UDAAN scheme, encouraging investment in generation of nuclear energy and encouraging Indian exports in the international arena.
Despite this, the macro bulls did not come in force and the intraday play largely remained bearish.
The world is pivoting towards becoming bilateral as opposed to multi-lateral, a lot of business agenda will get driven by trade agreements in upcoming times with major player like USA which is looking for alternatives to China. Sometime soon, US markets will cool off once the initial AI euphoria is behind us and the dust settles with actual use cases and more grounded assessments come through; the dollar is likely to give up some of its strength allowing the rupee to stabilise, FPI flows will normalise and then this budget will look just great. It is time to get back into the markets, hopefully the worst is behind us. Indian investors should review their portfolios and take cognizance of factor and sector rotation in the markets.”
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