Finance Minister P Chidambaram. 
Special 
Finance Minister P Chidambaram. The fiscal deficit for FY2014 has been reined in at 4.6 per cent of GDP vis--vis market expectations of 4.8 per cent of GDP.
At least in the interim budget, the Finance Minister has estimated the fiscal deficit target for FY2015 at 4.1 per cent of GDP presuming higher GDP growth and tax buoyancy, but it remains to be seen whether the estimates stay unchanged after the new government comes to power after two to three months.
The market borrowing programme has been estimated slightly lower than market expectations. That is likely to be positive for yields at least in the near-term. Excise duty cuts have been announced for sectors facing the major brunt of the slowdown. The cuts are positive for the automotive sector and for capital and consumer durables goods production. This is good news for the manufacturing sector.
FULL COVERAGE: The Great Indian Budget
Going ahead, I believe that the general elections are likely to take centre stage for equity markets and their outcome will be crucial for determining market direction.
Dinesh Thakkar is Chairman & Managing Director, Angel Broking.
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