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BW Businessworld

'Bond Market And Currency Market Have All Reacted Positively'

Sunil Sanghai, Vice Chairman & Head of Investment Banking, gave his reactions on the Budget 2017 to BW Businessworld in a short interview and exclusive interview

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On being asked if the budget announced by the FM met the pre-budget expectations on the capital front or not, he said, "When you talk about pre-budget expectations, it would difficult to say if they were met but I think this budget actually played a much-needed balancing act, as the FM while maintain the fiscal discipline, he also focused on consumption and investment, a lot of money going into the rural area and projects, and at the same time he is creating the pathway for investment. As a result the capital market has liked it a lot, it is equity market, and bond market and currency market have all reacted positively."

He also shared his views upon the digital push the government is trying to make through BHIM App and soon to be launched Aadhar Pay, and the repercussions of all these on the capital market. Sanghai said, "It is a very positive move that will ensure that a cash-governed economy to move towards a digital payment one, also it will ensure that all capital movements are traceable and linked to one or the other identity.

Sanghai mentioned about a very interesting announcement around disinvestment, and that is consolidation of the PSUs, last time the FM was talking about consolidation of the banks. He said, "This will be something unique in every sector, for example in the oil sector, we have got ONGC, HPCL, IOC, BPCL etc. If we bring all these together, we will have a huge pond of resources and it will become a global oil corporations which will be very positive. It will create efficiency, economies of scale, creates synergy that will improve the bandwidth."