Budget Reaction - Alroy Lobo, Kotak AMC

Hi,

 

Please find below a quote from Mr. Alroy Lobo - Chief Strategist and Global Head, Equities Asset Management, Kotak AMC on the Union Budget 2009:

 

“It is a realistic budget and has an expenditure-led fiscal stimulus which is positive for domestic demand and medium term growth. The budget is also largely tax neutral which is positive for both growth and inflation expectations. The budget has worked with a nominal GDP growth assumption of 10% which is fair given the slow start to monsoons this fiscal year. The equity and bond markets have reacted to a high fiscal deficit as it has implications for monetary policy and the interest rate environment. However, if growth does pick up on the back of the fiscal and monetary stimuli, and divestments (no major revenue assumptions made in budget) materialize, it could be positive for India’s fiscal position.”

 

Also find attached his photograph for your reference.

 

Please feel free to get in touch if you need anything more.

 

 

 

Warm Regards,

Roshan.M.Negi

Associate

Genesis Burson-Marsteller           

THE HOLMES REPORT, 2008 CONSULTANCY OF THE YEAR

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