Envision Capital on Thursday said that uncertainty on GST implementation and Budget 2017 will be crucial for market sentiments. It also said that the next few quarters may be tepid and won't give much support to the markets.
Envision Capital on Thursday told ET Now that uncertainty on GST implementation and Budget 2017 will be crucial for market sentiments. It also said that the next few quarters may be tepid and won’t give much support to the markets. “We expect local as well as external factors to dominate markets for couple of quarters,” it added. Recently, Ramesh Damani, Member, BSE told the business news channel that a ‘Robin Hood’ Budget may not be well received by markets. “Budget must aim at higher growth, making the economy more cashless. I hope it is a popular Budget and not a populist one,” he said.
Narendra Modi government is likely to present Budget 2017 on February 1. The Budget is special not only for the fact that it has been preponed but more importantly because it comes within months after Modi government’s massive demonestisation drive. Most analysts and economists expect Budget 2017 to be tax-payer friendly, especially given the pain that common man has faced after old Rs 500 and Rs 1000 notes ceased to be legal tender money.
Meanwhile, the Cabinet Committee on Parliamentary Affairs (CCPA) recommended holding of the Budget Session from January 31. The first part of the Budget Session will run till February 9. The 92-year-old practice of presenting a separate Rail Budget is going to end from this fiscal, with the Finance Ministry accepting Railway Minister Suresh Prabhu’s proposal to merge it with the General Budget.
Finance Minister Arun Jaitley has indicated that railway travel may become pricier for passengers come the next financial year. Jaitley is also set to hold pre-budget consultation with states on January 4, after the meeting of the GST Council gets over.