I thought I would have to repeat Benjamin Franklin’s Quote “Well Done is better then Well Said “… I had quoted this for Mamta Banerjee’s Railway Budget a few days ago
But Pranab Mukherjee’s Union Budget Speech was not even Well Said !
No Clarity or Roadmap on Disinvestment, Deficit Control and Deregulation… Clearly a ‘Left’ Hangover yet lingering, perhaps !
As I had blogged earlier, I don’t see Pranab as a Visionary or even a great Orator…. yet, I had expected him to seize this great opportunity and reveal some Intellectual Framework of Great Forward Thinking and Vision for India going Forward…… He began his speech on this note saying we have a Young India, restless, but ready to seize opportunities…. I expected the speech to unfold on this Vision… Instead he kept droning on and on and relished quoting sections and subsections in his proposals….. more strategic vision needed to be articulated
Pranab Mukherjee began his Budget Speech with strong and forward looking objectives laid out… he ended it over an hour and half later quoting Mahatma Gandhi and stating we need to build a Brave India of our Dreams….. but everything else in between was simply a Droning
He could have spelled out the roadmap even more clearly as to how India is planning to tackle the High Fiscal Deficit of 6.8 % projected for FY 10 and how the Infrastructure Spending will cross over 9% of GDP… How is he planning to fund both ?…. There was a fear he would do so partially through raising Taxes… but as he said, his Direct Taxes Proposals is Tax Neutral and his Indirect Taxes Proposals are just Rs 2000 crs incremental… So where are the Monies going to come from ?…. a little pat for FII and FDI Investors would have inspired them to scale up their Inflows fast… enough monies are waiting to flow into India
And how will our GDP regain the 9% Growth rate ?… where’s the stimulus for this going to come from ?
I’m trying to read between the Lines here…. Market is not even going to try this… they want it to be stated bluntly and simply and the reaction is bound to be immediately negative… It had dropped over 700 points from intraday Highs as I blog this.
It would be a great chance on any significant correction to enter the markets… It’s at 14350 levels now just past 1 pm.. It had surged to over 15000 just as Pranab Mukherjee had started his speech.. Sensex had gone ahead of realities that I have spelled out repeatedly in earler blogs… It’s now in correction mode…. It will, however, recover in the medium term…but don’t be in any hurry yet to Buy… wait for correction and consolidation