Ridham Desai, MD, Morgan Stanley in an exclusive interview with ET Now said that a populist Budget 2017 may scare the markets but it is difficult to gauge the impact. Further talking about the markets he said, “There is a need to look at stocks with right valuations before taking a call. Since equities are looking relatively attractive compared to bonds, so I expect that 2017 will be a good year for equities.” Speaking about the UP elections, he stated that “markets are hoping that BJP wins UP elections. If BJP doesn’t win then markets will see volatility.”
Meanwhile, The Union Budget 2017-18 will be presented on February 1. Having decided to advance the budget presentation by a month, the government took the line that it should not be presented in the middle of Assembly poll in Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur. So, it consulted the Election Commission, which has concurred with the finance ministry’s view that it is an annual financial statement and can come anytime of the government’s choice, officials said.
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Also, The Cabinet chaired by Prime Minister Narendra Modi took the historic decision of scrapping a separate Railway Budget and merging it with the General Budget. According to the government, the unified budget will bring Railways to centre stage and present a holistic picture of financial position of the government.