With no LTCG cut, do you see the Budget 2022 as positive for capital markets?

You can say that there are no instant gratification measures for the capital markets. It does not have short term boosters like cut in LTCG tax or lower STT or a boost to disposable incomes. Budget 2022 has partially been an economist’s ideal budget and partially a futuristic budget. What the budget has done is to trigger key steps towards ensuring and securing secular growth in the economy and markets.

The government in Budget 2022 has put in place several building blocks to help the markets. For example, the focus on reigning in the fiscal deficit is positive for stock markets, even if it means unpopular steps like cutting subsidies. Let us not forget that this budget has made an attempt to favour the domestic manufacturers because what is good for India is good for markets. It is a true blue Make in India budget.

The budget has an intense focus on domestic manufacture of defence equipment, solar equipment, digital products etc. what the budget has done is to subtly shift the pattern of its spending from predominantly revenue spending to a larger chunk of productive capital spending. This is likely to be long term accretive for GDP growth and also for markets. Focus on sops for the MSME segment, will be an indirect boost to exports and jobs.