Larger fiscal deficit may lead to market correction

Nitin Jain, CEO of retail capital markets and global asset managaement, Edelweiss:

I would rate the budget a 7 and a half on a scale of 10. Though it is a fairly well balanced budget, the market expectations were really sky rocketing before this day. So I would not be surprised to see a market correction of maybe 5-6 per cent.

It is not close to the 'visionary document' that people have been talking about; but overall, I would still say it is well balanced one.

The levy on corporate taxation, rationalisation of wealth tax, and incentives by more expenditure towards infrastructure, are all positives. But nowhere close to what markets were expecting.

For NBFCs (non-banking financial companies) the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act) is a huge positive.

For some infrastructure companies, especially in roads, the EPC (engineering, procurement and construction) companies should do very well.

"But that is where I would stop. There were much more expectations on infrastructure spending. And more than all this, the expectation on announcements for banks, as banks are in massive need for recapitalization. The budget fell short on those expectations, but maybe those may follow soon."