Union Budget 2021 - 'Post-budget' reaction from Jaideep Hansraj, MD & CEO, Kotak Securities

"It has been a great budget in the current pandemic. Market has given a clear thumbs-up. One couldn't have asked for more, of the total borrowings of Rs 1,50,000 crore a whopping Rs 1,20,000 crore is going for investment. Clearly the government has sacrificed fiscal deficit for growth. No tinkering on taxes, including personal tax and a giant leap of divesting two state-run banks and opening up of market by making way for the LIC IPO and foreign ownership in insurance companies has been a welcome move and the primary reason for the rise in stock market."

"This budget has capitalised on the opportunity to spend more and boost the economy even at the expense of higher borrowings. The steep jump of 35% in capital expenditure over last year's budgeted number is a signal of faster and more productive revival of the economy. Clear focus on Healthcare, Infrastructure and manufacturing is good for economy and markets. A healthy Nominal GDP growth and formation of bad bank structure can help increase credit offtake and revive banking business. No direct additional tax burden on individual tax payers is welcome. With major thrust on expenditure and growth we can expect double digit earnings growth for organised players for the next two-three years. Valuations could restrict upside but compounding story could remain intact."