Budget needs to deliver for markets to move higher: Sandip Sabharwal
«So, my view is that if the budget disappoints and I think the only way it can disappoint is if they do not give relaxation on personal taxation and those have to be significant,» says Sandip Sabharwal, asksandipsabharwal.com.
What is the anticipation? I know no correction is anything to worry because if election outcome is anything to go by, it will be lapped up in no time.
Sandip Sabharwal: So, one is the liquidity story which is the domestic liquidity gushing around. The second is the overall valuations, like Nikunj was saying, like at market cap to GDP of 155% at valuations which are much higher than historical valuations, we need the budget to deliver actually for the markets to move higher. So, my view is that if the budget disappoints and I think the only way it can disappoint is if they do not give relaxation on personal taxation and those have to be significant.
I think incremental tweaks here and there and announcing them as big tweaks or big changes is not going to help. So, they have got a buffer of one lakh crores through the RBI dividend.
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They should be bold and give around one-and-a-half lakh crores of relief to individual taxpayers because the multiplier on this is very high. So, one-and-a-half lakhs crores of tax break can actually lead to ultimate
