Market is skeptic about revenue assumptions made in the interim Budget, says Manishi Raychaudhuri of BNP Paribas

Manishi Raychaudhuri, Asian Equity Strategist at BNP Paribas, spoke to CNBC-TV18 about the interim Budget and market fundamentals.

Speaking about the interim Budget 2019, Raychaudhuri said, “The Budget had its positive as well as the risks, some of which were underscored. On the positive side, it clearly provided support to consumption at the base of the pyramid through the farmers support program, the pension plan for the unorganized sector workers, and the tax rebate that was provided to taxpayer below Rs 5,00,000.”

“We must also be mindful of some of the very aggressive assumptions that were made in the Budget particularly relating to the revenue assumptions on GST and the disinvestments that were factored in. What we are seeing in the market today is a degree of skepticism that the market has about these assumptions and as a consequence of that not only have equities underperformed, but also bond yields have increased. On Friday itself, we saw spike of about 10 basis points or so. We think in the medium term this might continue,” he added.