#BudgetAnalysis

REASON WHY FII's HAVE TURNED BUYERS AFTER BUDGET
OUR TAKE ON BUDGET 2016
Indias 70% on economy more or less depends on agricultural income
This budget major emphasis was given on agriculture
Many policy were announced as far as irrigation and protecting farmers from natural calamities and crop damage
Major pocily were directed towards kick starting rural economy this will lead to aggregate demand for goods increasing consumer goods fmcg auto(2wheelers) will be the major beneficiary
Also
Major stress was given on affordable housing
In India demand for small houses is very high GOVT bas taken lots of initiative to kick start housing industry this will lead to aggregate demand of cement and steel going up by more then 20 times
Govt have laid down ambitious targets for road and infrastructure development
Govt have taken steps to protect local steel industry by introducing minimum import price (MIP)
As we see going forward 7th pay commission impact will also come which will give higher disposable income in hands of many ppl which will ultimately give  kick start to spending
As far as taxes are concerned there was nothing major as to hurt tax payers
Service tax which was expected to go UPTO 16% was hiked only by 0.5% and that to in form of agricultural cess which will again help farmers
This budget will have better effect then what country saw even during green revolution in farmers life
As far as rich ppl are concerned they will have to pay a little more tax then what they were paying before but on other hand there income will also go up as and when rural economy and the demand for aggregate goods go up
This budget is a win win for all for rich and poor
This budget will ensure that india will be far less affected in case of global recession
In coming quarters you will again see TOPLINE GROWTH visible as demand for goods increases
Now country will enjoy benefits of lower commodity prices
Inspite of all the headwinds finance minister has ensured fiscal deficit TARGET OF 3.5% which will help RBI to decrease the cost of money (interest rate) which will again help the country to grow at a faster rate
Also
Government has not made any changes as far as long term capital gains tax is concerned this will bring back interest in high growth mid caps and small cap companies and market makers will take advantage of the LTCG TAX
Over all we feel that this budget will be a game changer in indias economy and any decline in the markets should be used as opportunity to buy and average out your old holdings if they are showing growth
We may see sensex and nifty stabilising and many new stock specific opportunity  emerging