The Budget speech mainly reflected on the key achievements of the present government over the past five years and their vision for India. It can be assumed that the government refrained from announcing big-ticket changes in this Budget. The budget maintained a good balance between populism and fiscal prudence (this was expected being an election budget). The government missed its FY19 fiscal deficit target (of 3.3 percent of GDP) and instead pegged it at 3.4 percent. It budgeted the FY20 fiscal deficit target at 3.4 percent of GDP, missing the glide path target of 3.1 percent. The Budget poses tough challenge for the fiscal situation for FY20 given the aggressive assumptions for tax revenue growth; it however, is expected to boost consumption. This growth mix may prove to be neutral for the overall macro situation. … [Read more...] about Budget 2019: An Election Agenda?
Private equity funds
“All the recovery we made from February 2019 lows has been sold into and we are back to the February levels. The longevity of the ongoing bear market in mid and small caps - of this magnitude has been astounding to even the most seasoned equity investors,” Veliyath stated in the letter. … [Read more...] about Porinju Veliyath writes to investors, blames budget for poor performance of portfolio
Ever since long-term capital gains tax of 10 percent without indexation on profits made above Rs 1 lakh on the selling of equity shares and mutual funds were introduced in Union Budget 2018, the same has not gone down well with industry stakeholders. To infuse capital in the economy and boost investments, Budget 2020 should reconsider this provision. … [Read more...] about ‘Budget 2020 crucial for realising $5 trillion economy dream’
The mobilisation of domestic resources for infrastructure would require special attention in addition to incentives for overseas investors too, mainly because of the peculiar nature of these projects, where the fruition lag is very large and the returns may be relatively smaller. It may be worthwhile issuing special instruments to raise funds for these projects. … [Read more...] about Budget 2020: ‘Market may have already priced in a fiscal slippage of 30 bps’
"While corporate loan growth is strong and driving overall loan growth, retail loan growth remains skewed in favour of unsecured products. Asset quality has deteriorated as the bank reported higher slippages from lumpy accounts and the agri segment. However, provisioning buffers should enable a steady earnings trajectory," said the brokerage, which estimated loan book/PAT CAGR at 19/25 percent over FY19-22, led by continued improvement in operating leverage, higher fee income and stable margins. … [Read more...] about HDFC Bank Q3: Mixed numbers; should investors buy, sell or hold?