Ajay Srivastava, CEO of Dimensions Corporate Finance Services believes that Budget 2021 will be insignificant and is expecting changes in customs duty rates.
"Budget is insignificant. There is nothing there in the Budget because 60 percent of budget is spent on government official salaries, etc. So you [Finance Ministry] announce 10 schemes, money will move from one to another. If people are banking on the budget, the only thing one is looking for is that some industries will get affected -- plus or minus -- depending on the tariff barriers if they change the customs duty around it," he said in conversation with CNBC-TV18.
According to Srivastava, one clear negative could be the COVID-19 surcharge that could come in Budget 2021. "From the economy perspective, I don’t think any decision taken in the budget has any implication. The money is allocated, there is not enough money in the kitty, and there will be the vaccination drive. So a negative news is going to come our way. There will be a vaccination surcharge -- how big it will be, we don’t know, will it be only on corporates or individuals, we don't know, but most likely it will be on all HNIs and corporates," he added.
On the markets, Rohit Srivastava, Founder and Strategist of Indiacharts.com, said is expecting markets to consolidate around the budget.
"Seasonally around the budget you often see markets pull back or consolidate for a while. So as we get closer to that, you need to be a little more aware about the seasonal cycles, especially on the trading side, because investment stocks sometimes can outperform the indices. But once we go into a consolidation phase, a lot of the trading ideas need to be taken off and it is a good time to book some profits as you head into the event. But there is still some short term upside left," he said.
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