Comments
The vote-on-account slated for Monday will largely be a non-event for the equity markets, say capital market experts.
However, some negative surprises cannot be ruled out on areas such as Government borrowing for next fiscal, they said.
“It will largely be a non-event for the equity markets.
“But the Finance Minister can still make it an event if he chooses to do so,” said Jagannadham Thunuguntla, Head of Research at SMC Global.
Slide unlikely He said the headline numbers (on fiscal deficit, current deficit) are going to be met by the Government and therefore equity indices are unlikely to see any downward slide on Monday due to this event.
At the same time, some tinkering with indirect tax rates cannot be ruled out. In the past, both National Democratic Alliance and United Progressive Alliance had resorted to indirect tax rate cuts through vote-on-account.
A non-event Tirthankar Patnaik, Director-Institutional Research, Religare Capital Markets, said he expects the vote-on-account to be a non-event from the equity markets perspective.
“It should be a non-event,” he said adding that the Government is widely expected to cut Plan expenditure, defer subsidy payments and use special dividend payouts by banks and public sector entities to meet the red line of fiscal deficit of 4.8 per cent of gross domestic product.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.