Besides Budget, markets will be driven by global events and the outcome of Assembly elections
As the Narendra Modi-led government prepares to present theon February 01 after the big bang demonetisation move in November, the markets have clawed back from their recent December lows with the S&P BSE Sensex rallying nearly six per cent to over 27,200 levels.
The rally in the mid-and small-cap indices has been sharper with the S&P BSE Mid-cap and the S&P BSE Small-cap indices surging around 11 per cent each during this period.
So what does this Budget hold in store, and what are the markets expecting from the Finance Minister this time around?
The markets, analysts say, are primed with the expectation that the Budget will be focussed primarily on reinforcing the ‘black money crackdown’ theme with a secondary focus on delivering token payments to the poor as well as income tax cuts. The government now will have the opportunity to signal its unbridled economic priorities within the broader ambit of prudent fiscal consolidation.