Sops will beef up growth
UTI chairman PS Subramanyam said: Broadly, it is a growth-oriented budget with welfare at the core of it. We will witness accelerated growth of the mutual fund industry and the capital markets. Also the benefits to housing and harmonisation of venture capital funds would see the agricultural, IT, bio-technology, R&D sectors benefit.

Move for trading terminals good
Bombay Stock Exchange director Deena Mehta said: From the capital market point of view its a goodbudget. Especially the waiver offered for setting up trading terminals abroad is perceived as a positive step. In terms of the sops offered on reduction of long-term capital gains tax one needs to see if the indexation factor has been allowed. If yes then it would be a major boost. Its not a dream budget but only a positive budget hence the current rally is not a healthy indicator. The index should first correct itself inorder to rally at a later stage.

Measures will woo investors back
DSP Merrill Lynch vice-chairman and managing director Shitin Desai said: The budget is extremely positive with the tax exemption on dividend from mutual funds and the reduction of long term capital gains tax to 10 per cent which will get the small investor back to the markets. The abolition of stamp-duty on demat debt securities should give a boost to the debt market. The overall reduction of fiscal deficit should bring the interest rates down during the year.

Incentives will strengthen market
BombayStock Exchange president JC Parekh said: The budget is oriented to give a boost to the capital markets. There would be immense incentives for investors to invest in schemes of UTI and other mutual funds where investments in equities is more than 50 per cent. Further reduction of long-term capital gains on shares from 20 per cent to 10 per cent is a welcome step. The budget has also recognised the importance of business re-organisations in the current environment and given several tax concession for amalgamations and de-mergers. We feel that overall the budget is very positive for the economy in general.

Direct taxes to boost revenue
Sun F&C, AMC, CEO, Nikhil Khattau said:In the direct taxes a 10 per cent surcharge would mean a marginal increase of 3 per cent for individuals and 3.5 per cent for companies and to balance this he has reduced the long term capital gains tax to 10 per cent. This would mean that the revenue goes up through direct taxes.