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n an interview with CNBC-TV18, Darmesh Mehta, Head- Equities at Enam Securities, spoke about his outlook for Budget 2010.
Here is a verbatim transcript of an exclusive interview with Darmesh Mehta on CNBC-TV18. Also watch the accompanying video.
Q: What is the institutional takeaway on the Budget good, bad or neutral?
A: I think it is good. The expectations were low on the Budget. Last one month, people were fearing this event. I think it has positively surprised everyone. So with a sigh of relief, that doesn’t allow us to relax because of the global uncertainty which is happening. The India event which was the big event, the Budget is now over and it has been a positive event rather than a negative.
Q: What is the big positive from your client’s perspective because the skeptics would say GST and DTC next year April 2011? You wanted 5.5% fiscal deficit that has been delivered. Aside of small tinkering in the personal income taxes, what is the big positive materially in this Budget?
A: It’s the government borrowing which is not a very large number, so which lies the interest rate hike fears saying that. We will not be aggressively on the interest rate hikes. It will give some kind of respite and if you look at the entire domestic consumption boost which has happened due to this lower taxation to the lower level income. This also adds to the entire consumption story. In this kind of global environment, if you put that in perspective this has been quite a decent Budget in that sense. When things are so uncertain in the world and India in stand alone out there, it has been much more positive than what people can see and especially when you go abroad the kind of situation which is there which is so uncertain. This gives much more comfort to other global investors.