Budget 2016

Place to post your views about what the budget will be all about and also what will its impact be on stock markets

So a post to contain both - view what the budget will be like and its impact

 

Good points worry is about LTCG scrap proposal. that will trigger bad sentiment and huge sell off while revenue is low

 

in my view this budget may favor to farmers and major allocations to control inflation and infra housing , steel companies, ..i think there is not favor much benefit to stock market

 

Every country govt are making right noises and taking steps to protect their economies But we have NRI PM and legal FM busy without business.I am afraid if they did not deliver in this budget and did not stop their habit of killing finincial health of public like not passing crude down fall benefit to Indian public or dare to put LTCG ,this may be last budget for FM and first and last term for PM.If both of them want to survive this bear market,instead of thinking about LTCG tax ,they must stop dividend distrbution tax ,give special extra 50000 benefit in income tax for only investing in direct equity or equity Mutual funds in each year to every tax payer to spread equity cult.

 

Lincoln's Quote below

Government of the people, by the people, for the people, shall not perish from the Earth

Stands adjusted to

Government of the people, by the people, for the people, shall not perish from the Earth ( except India)


For in India (a country of 1.3bln consumers with less than 1.5% as investors) its :

Govt of stock investors , by the stock investor and for the stock investor shall not perish from India

But politicians know its the farmers suicides that extract political milage and govt falls and not investors

 

And you are not wrong in that the budget should favour farmers ( actually agriculture). A 2% growth in agri and our economy grows between 8-9%

Makes good headlines at least. stock gurus can spin yarns to tout shares.

 

I Think govt may take steps to control food inflation , so agricultural sector may get benefit in this budget , if they are not control food inflation govt may loose so much of drought allowance to govt employees crores of rupees
basically india is based on agricultural , in my view make in india may not get good benefit because world economy is not healthy , so all nations take steps towards closed economies , there is no money for expansions and take overs ...that is bad lock of our country ...so modi ji decided to concentrate on basic industry ....
IT income is not relaible for our country , because once Greece is hub for BPO business for entire Europe , but all BPO business transfer to Asia and some or shut down due to cost center problems ...

 

Some good pointers to reality. But unfortunately all reflect the grim challenges our legal FM (busy without business) needs to tackle as he prepares the budget.

Another monsoon failure coupled with the current sowing season which i understand is already delayed and we have food inflation going through the roof.

Poor world economy : its real and widespread ( but improving in parts - just slightly) and whatever anybody may say and think, India does not and cannot be insulated...

Exports sagging is old news.

Another old news is Domestic consumption especially Rural in the doldrums.

Not sure if the FM can and will avail the 24x7x365 money tap available to fund the 7th pay commission recos, OROP, Uday ( which kicks in next year) and probably many more which I can't recollect now.

 

yes . another problem is " PSU" banks NPA problem , so government take necessary action on that issue immediately , and my view is change in FM is needed , piyush goyal is the right person for FM post and present FM is suitable to law minister ..... after Raghuram Rajan term is over in this year ,government search for capable person is also very much needed, in my view Raghuram Rajan is correct person for FM post ,

in my view If FM intervene in Capital gains and STT issue for negative to stock market , indian base sector is Agriculture and Housing industry , service and IT is improved more than Agriculture sector from 1985 onward rapidly , but those are all giving temporary boost up in economy , it is depend upon several countries economy and competition , so if this current fiscal year budget focus on base sector and solar energy sectors is better for India ....

 

Although FM is not taking innovative steps, he cant be termed as failure. basically he is a lawyer and may take time to grasp the financial side. he is a very talented person, and understands how our country's system works . managing a large countrys finance like india is not a easy thing.in short term our economy may not look good, but in long term this will definitely make positive impact on economy.
one thing i noticed that fm has achieved is that property/ asset prices have come down avoiding a asset bubble through which rich people becomes richer.
if fm was that big failure, modiji would have changed him in the first year itself.

 

rama sir, i think food infalation is mainly caused becozz the bad doings of the intermediary forces in the agricultural sector. if a banana is priced 40 rs per kg in market, a farmer gets only rs. 15-20 rs for his 7-8 months of hard work. intermediaries earnes 20-25rs per kg for 1-2 days of work. this is just an example. the actual situation is much worse than this.
how can farmers prosper in this condition( farmers constitute 51% of population.) govt shud setup a system to check whether there is undue forces in the food market that pumps up prices for their advantage.

 

yes , your point is very vital for agriculture sector , " storage felicity , transportation , and Direct marketing with out mediators " is best in our andhra pradesh state government runs " farmers bazaar " for vegetables and fruits selling purpose

 

yes , my view is correct on budget , Agro and Infra housing got major benefit

not favor to stock market :
1.Imposed Dividend Distribution tax on Rs. 10 Lakhs and above will affect promoters, HNI, FII investments
2.STT increase on options
are negative points

but thank FM he was not touched " Long Term Capital gains " is positive for us ....

 

https://indiabudget.nic.in/ub2016-17/bs/bs.pdf

 

This budget is nothing but mentioning and accounting of different heads under which this govt plan to waste the hard money ,which tax payers will pay through their nose but govt ends up creating A BIG ZERO for Nation and increasing army of dole getters.

 

what did you expected in this budget?

 

So with the proposals under the agriculture pillar - is food inflation a perceived risk?