10 key things brokerages expect from first Budget under Modi 2.0

Union Budget 2019: All eyes are set on the first Union Budget under Modi 2.0 that is slated to be unveiled on Friday (July 5).

With a clear evidence of economic slowdown and weak corporate earnings, Finance Minister Nirmala Sitharaman has her task cut out. Deep agrarian distress, high unemployment rates, the slowdown in automobiles and consumer demand, crisis in NBFC (non-banking financial company) sector and rising pressures in real estate and housing and muted capex cycle in the economy are some of the pressing issues that need addressal.

Market experts expect the government to lay out a growth-oriented budget to pump-prime the economy. The priority, they say, should be to arrest the declining growth momentum and the crisis of confidence by being a little expansionary this time. Since inflation is expected to be benign in the short-to-medium term, many experts feel the government should let go of the fiscal deficit target of 3.4 per cent set in the Interim Budget in February 2019.

The domestic market has not witnessed any pre-budget rally this time as the stocks surged in the run-up to the Lok Sabha elections and hopes of Modi government returning to power.
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