In an era where it is incumbent upon the distributors and advisors to provide good advice and seamless service with single page view on all asset classes, enabling mf distributors to access the stock exchange platform that rides on robus depository backbone is an excellent move. We urge all intermediaries to take maximum benefit of the same. I believe ETFs can aid alpha creation and better returns for insurance portfolios at a very low cost. It’s a welcome move and we will work hard to showcase Motilal Oswal’s innovations like access to nasdaq and cnx midcap 100 etc to the insurance and pension managers' audience. STT reduction on ETF is a further boost to aiding returns with lower transaction costs.

The stock market movement during the course of the speech is indicative of a rather indifferent reaction to the Budget bordering on disappointment. While the Budget was not expected to bring about a sea change, it was hoped that there would be measures to spur investment. While this has been done more on the expenditure side, by focusing on infrastructure, MSMEs and banking sector, the incentives provided for savings and investment has been limited. The reduction of the STT is positive though the commodity market will not be too happy with the introduction of CTT on non-farm products. Sectors such as power, cement, bricks, coal, electronics etc would be positively impacted, though the net impact of the higher freight rates due to the railway budget would finally determine the end impact given that the indirect rates have been more or less held stable. The relatively lower deficit number for FY14 looks credible and possibly will be achieved that will help the market proceed on this basis. While the market has fallen by around 200 points during the speech, I should think that it will recover as it has been more or less a balanced budget, and it could mean business as usual from tomorrow.

The budget announced by the Finance Minister seems to be a overall balanced budget considering various constraints faced by him. Itseems to be very good budget from the capital market perspective as number of initiatives and announcement have been made which will benefit the capital market. Cost of STT in derivative segment has been reduced from Rs 1720 to Rs 1000 per crore is a very welcome step. Under RGESS the fiancé minister has raised the income limit from `10,00,000 to `12,00,000; and the extension of benefits in not one year alone, but in three successive years is very positive for markets and will attract new retail investors.Distinction between FII and FDI was made cleared by treating investor with a stake of 10 percent or less in a company will be treated as FII and an investor having more than 10 percent will be treated as FDI. Excise duty and service tax more or less has been retained at same levels.

As against the market expectations of announcement of a populist budget on the backdrop of General Election next year, FM has announced a realistic, balanced and pragmatic budget. Fiscal deficit target of 4.8% is possible in view of disinvestment target enhancement from Rs 30,000Crs of Current fiscal to Rs 40,000Crs and reduction in subsidies. Emphasis on infrastructure funding is also laudable. Surcharge of 10% on super-rich is not going to affect large numbers but will add substantial amount to the exchequer. First time investors in RGESS will have a tax relief for their investments for 3 years. It will certainly attract more investors in equity market/mutual funds. Introduction of Inflation Index Bonds and additional relief on Housing loan int will attract small tax payers. DTC not coming so soon is also a welcome sign

The government's reform momentum had been so strong since September that there were expectations of some exciting measures in the budget too. That was not the case, but it does not mean the budget was a disappointment. The FM has been seriously committed to bringing down the fiscal deficit, and he has delivered on that front, as he did not announce any major populist measure and largely maintained stability in tax policies, save for some tweaking for higher income brackets and corporates. In my view there were no major positive or negative triggers for the markets or any particular sectors, and I think what the market will look forward to is the reform agenda being continued by the government outside the budget, in the coming parliament sessions, for which the momentum still looks very much on track.

Although focus has been shifted from reducing inflation to mainly curbing the fiscal deficit, 2013-14 budget has given equal weightage to other areas also like Agriculture, infrastructure, education, equity investments so as to also to bring in a holistic growth. In the commodities space, major focus by the government was an introduction of transaction tax on non agri commodities. In line with the STT, the government introduced Commodity transaction tax on non agricultural commodities @0.01 percent. The move will, to some extent, discourage investment in commodity futures trading and reduce liquidity. It is feared that it may also divert traders towards unauthorized/illegal trading. Further, main aim of 2013-14 budget is to reduce the fiscal deficit to 4.8 percent which will lead to appreciation in the Indian Rupee and will exert downside pressure on the gold prices in the domestic markets. Also, liberalization of Rajiv Gandhi Equity saving Scheme, tax benefits for new house loan, additional interest deduction upto Rs.1,00,000 along with introduction from Reserve Bank of India (RBI) for instruments protecting savings against inflation may reduce investment demand for Gold.

The budget is good for capital market measures and will promote broad-basing of markets. Increase in the income limit applicable for RGESS, its extension to another 3 years, reduction of STT to 0.1% and the inclusion of Mutual Funds would promote household participation in securities markets and would increase the investor base. The proposal to promote launch of more Infrastructural Development Funds and allowing issuance of tax free bonds up to a threshold of Rs. 50,000 crores would be a boost not only to the infrastructure sector but also to the proposed debt segments on the exchanges where these could get traded. Measures to enhance the participation of pension funds, insurance agencies and provident funds in debt segment, subject to the regulatory level, would provide impetus to MCX-SX’s efforts to develop the exchange traded debt segment. The proposal to allow SMEs to list without making an IPO would provide impetus to the SME sector. On the overall, the budget would boost not only growth but also broad base the capital market and investing population which is the need of the country currently.

All the markets (Equity, Bonds, Currency) have not given a thumps up to the Budget and have reacted negatively but we believe that under the given constraints it is a very good budget and can potentially open the doors for RBI to reduce the interest rates further helping to revive the growth. The budget meets the basic criteria of adhering to the stated fiscal deficit targets of (5.2% for FY12-13) and (4.8% for FY13-14) after accommodating reasonable increase in plan and non-plan expenditures. Auto & Financials look interesting sectors followed by select Capital Goods/Infra and Consumption Stocks. The Rs 1 Lac additional housing interest exemption will further help revive the Real Estate sector as well as all the Ancillary Sectors like Steel, Cement etc. Lot of emphasis has been given on reviving the Infra sector by announcement of new projects as well as Infrastructure Board to clear the dispute hampering the completion of already initiated projects will also be positive for Infrastructure sector. Our Top Picks are Maruti, ICICI Bank, Union Bank, Larsen & Toubro, Dr. Reddy's.

FM has announced an expected, realistic, balanced and pragmatic budget. Fundamentals of budget are strong. Marginal relief to small taxpayers by way of tax rebate up to Rs. 2,000. Not addressed the concerns of investors in respect of taxation of indirect transfers and certain retroactive amendments.DTC (direct taxes code) not coming so soon is also a welcome sign. In long term stock market will give good returns and investors should look at companies which have consistent earning visibility with strong management and fundamentals.

No bad news is good news. The markets have reacted negatively today, one reason is due to the fact that there has being no big bang announcement favorable to the market and the second reason is because of the F&O expiry.I think, the crux of the budget statement is on the various spends as proposed as well as increase in the plan expenditure by 30 %, this in turn in the long run, should give a boost to the GDP growth. Now we need to look further into the year and expect the outlined statements are properly implemented in the grass roots to achieve the GDP and the Current account deficit targets.

There are proposals for widening the Rajiv Gandhi Equity Savings scheme, streamlining inflow from QFIs and different classes of portfolio investors and permitting Pension Funds and Provident Funds to invest in debt schemes of Mutual Funds. Distribution reach is proposed to be enhanced by streamlining the KYC norms and allowing Mutual Fund distributors to become members of the Stock Exchange. These are welcome steps and could act as facilitator for mobilization by Mutual Funds.