Can budget 2010-11 have long-term impact on various asset classes?

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Topic : Post Budget 2010 impact

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Yes Its Ture . This Budget Make Long Impact On the assets I think There Also Other Impcts On Real Market . They Are Going To Inceras The Price Of Petrol and Disel , This Is The Main Way For Increse Price OF every Product In the Market .

By balaji golekar, Event cordinator. ICPCI , Mumbai . 03 05 2010 05:44:08 +0000

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hmmm.... maybe you are right. but with the lean period that you speak of will be due to various reasons:-

1. Mopping up of liquidity in the system by disinvestment, debt instruments, hiking of CRR etc.....

2. With the hike in interest rates there will be a hike in deposit rates and that will further suck the liquidity.

Such factors will give rise to a shortage of funds, but the banks will have more liquidity and their advance will rise.

But corporates will shy away from borrowing money at high rates, forcing the banks to bank with the middle class.

All this however will mean a rise in inflation as well as prices of everything that we will purchase.

But today in the 21st century, people go out of the country to borrow money in various ways. Also the world realises that India & China are the wheels on which the world is moving. So the money will flow in and fund requirements will be met through outside assistance.

Hence I dont think there will be a lean period in the Indian Economy.

Theoretically, you are right, but if you see the practical side of it, you will understand.

By Kanad Mahesh Gandhi, Freelancer, Freelancer 03 05 2010 08:40:39 +0000

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Support "Yes" edit in rich text ... Submit Cancel Saving ... 0 0 yes By l dash, sales, cloud9 \| 03 04 2010 13:24:04 +0000 Edit \| Delete Support \| Oppose 0 0 There are two ways for an investor to gain from the Budget proposals. The most common strategy is to pick up sectors or a group of companies most likely to shine from various Budget proposals. Every Budget has its favourites in terms of tax proposals, sops and budgetary allocation. This tilts the playing field in favour of certain companies. The investor can juice-up his returns by betting on these stocks. And like every year, the Budget proposals for FY10-11 have benefited some sectors and hurted others. By Archana Singh, Relationship Executive, ICICI Bank \| 03 04 2010 12:38:25 +0000 Edit \| Delete Support \| Oppose	Support "No" edit in rich text ... Submit Cancel Saving ...
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Can budget 2010-11 have long-term impact on various asset classes?

	Can budget 2010-11 have long-term impact on various asset classes? Created by : Archana Singh, Relationship Executive, ICICI Bank \| 03 04 2010 12:38:25 +0000 Industry : Equity Research/AnalyticsFunctional Area : Equities(Markets) Keywords : budget 2010 union budget 2010 budget highlights finance minister india budget 2010 budget highlights budget news 2010 indian budget indian finance minister budget 2010 news finance minister pranab mukerjee union budget 2010 pranab mukherjee budget 2010 Activity: 387 views; last activity : 07 06 2010 20:18:09 +0000 By the end of the FY09, India’s fiscal deficit — excess of the government expenses over its revenues — was nearing 10% of the GDP forcing the government to scale-up its borrowing programme. This had two immediate effects. First, it greatly pushed up the demand for goods and services in the economy and helped in the build up of inflationary expectations. Second, a hike in government debt issuance sent the yield curve up for all kinds of debt instruments. This had an adverse impact on investment and consumption, especially high-value items which are bought on credit. Historically, every episode of high fiscal deficit is followed by a period of poor economic growth. The impact of the Budget, however, goes beyond simple sectoral arbitrage. The government is the biggest economic actor and the budgetary proposals touch everything and everybody in some manner or the other. While in a normal year, this cascading affect is small and short-term in nature; this Budget is likely to set in motion factors that may have significant and long-term impact on asset classes, especially fixed income and equities. So users, according to you people, can budget 2010-11 have long-term impact on various asset classes?