Take Aways From Budget 2019-20

Friends,

The budget presented some welcome things for the stock market. It’s good that companies with turnover of under 300 crs will pay 25% tax on profits. Some of these companies may well get in to 1000cr club eventually because it was in the previous year that t/o needed to be under 400 cr to qualify and the new companies also will qualify for this rate.

The raising of funds from abroad by govt itself is good thing to do for now the corporates will have less of competition from govt in area of fund raising for their operations.

Funding of PSBs will make them come back to commencing lending to corporates.

There is boost to local manufactured of many goods and should help. More money taken from rich and spending it on welfare of masses and creating infrastructure is going to a demand booster. Railways are going to be more efficient and freight rates may be brought down.

The incentive to buyers of homes is a very good step, whatever can be done to help the first home buyer is less. This augers well for cement, paint and Stella companies.

What duty is applied for import of gold is of not much consequence however it is not right to raise it but it should have been brought down to put break on smuggling.

The market slipped buy that OK again as the direction of market is going to be determined by the results that will soon begin to be announced shortly.

Krishna Khandelwal

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