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Posted on 01-07-2019 | 12:06:06PM

Govt may retain 3.4% deficit for FY20; market to scale new highs after Budget: Poll

Amid weak global cues and signs of a slowdown in Indian markets, Budget 2019 could act as a shot in the arm for the economy and boost the performance of equities, a poll showed.
According to analysts, fund managers, and money managers that Moneycontrol polled, the upside for Sensex and Nifty remain intact and they are on track to hit fresh record highs in FY20.
The biggest worry on D-Street is whether the government would be able to meet the fiscal deficit target of 3.4 percent of GDP kept in the interim Budget. It a tough ask especially at a time when the fiscal deficit for the first two months of FY20 stood at Rs 3.66 lakh crore, or 52 percent of the full-year target of Rs 7.04 lakh crore.
Almost 56 percent of the poll respondents are of the view that government is likely to retain the fiscal deficit target at 3.4 percent of the GDP while 31 percent feel that there could be a slight increase in that number. Rest of the respondents chose not to comment.
We believe the government will be able to keep the fiscal deficit target of 3.4 percent. That would be unimaginable in an economy that has slowed for the past three quarters, V K Sharma, Head – PCG & Capital Market Strategy, HDFC Securities told Moneycontrol.
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