BSE chief sees more investment in shares

Money flow into the stock market is expected to increase as people would like to invest in shares with the Union budget proposing to slash the interest rates of the financial institutions - Bombay Stock Exchange president Anand Rathi.

"With interest rates being lowered, we expect a lot of people to invest their money in shares which would result in an increased money flow into the stock markets," he said during a debate on budget on Doordarshan.

Rathi said, "the stocks have moved upwards with a favourable Budget and the market has reacted positively by gaining 200 points against the previous close."

He said measures like reduction in surcharge on tax and hike in Foreign Institutional Investors (FIIs) up to 49 per cent were a few of the positive steps in the Budget.

ASSOCHAM welcomes Budget

ASSOCHAM president Raghu Modi welcomed the Union Budget presented in the Lok Sabha saying it is a right step towards achieving second generation economic reforms.

Participating in a Budget discussion programme on Doordarshan, Modi said the Budget proposals were particularly favourable for Power and Telecom sectors.

"There is also a good message for industry and labour," he said, adding that "we have got adequate freedom to work now".

Modi said he was also happy that finance minister Yashwant Sinha has accepted a number of recommendations made by ASSOCHAM.

He said the Budget augers well for private sector investment in infrastructure areas like roads and power.

Dewang Mehta, NASSCOM President: 

Changes in ADR/GDR norms is very good news. The two-way fungibility and automatic allowance to use upto $100 million or 10 times the export value, will go a long way in helping Indian IT companies, particularly those listed on the NYSE and Nasdaq.

Vinnie Mehta, Director, Manufacturers Association of Information Technology (MAIT):

The customs duty on IT products will remain unchanged at a peak of 15%, but it will be brought down to zero on the inputs. However we will have to see which inputs will be included in that list.

Chirag R Amin, FICCI President: 

It is an investment driven budget. This will help in getting the knowledge economy other than IT started. We just hope that the finance minister moves towards lesser customs duty. The input cost should also come down.

Amitabh Singhal, ISPAI Secretary: 

ISPs will get a five year tax holiday from income tax and 30 per cent deduction from profits for the next five years for the purpose of determining the income tax as per Section 80IA of the I-T Act. Though we have not been given the infrastructure status, all the benefits therein have been given, thus bringing us on par with other telecom service providers.