rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Budget may focus on tax reforms: Barclays

Budget may focus on tax reforms: Barclays

July 01, 2014 09:22 IST

Budget may focus on tax reforms: Barclays

     Next

Next

The Narendra Modi government is expected to propose a pro-growth budget focused on tax reforms, lower subsidies and asset sales, global financial services company Barclays said.

"Given the pro-growth credentials of Narendra Modi, the new Prime Minister, expectations of administrative and policy reforms are high.

“We expect the first test of this to come in the government budget announcement.

Please click NEXT to read further. . .

Please click here for the Complete Coverage of Budget 2014 -15


Image: The Narendra Modi government is expected to propose a pro-growth budget focused on tax reforms, lower subsidies and asset sales.
Photographs: Reuters

     Next

Budget may focus on tax reforms: Barclays

Prev     Next
Prev

Next

“We expect the government to propose a pro-growth budget focused on tax reforms, lower subsidies and asset sales," Barclays said in its India Equity Strategy report.

While it does not expect a quick turnaround in private sector capex growth, it believes that asset utilisation should rise, which should lead to improved Return on Equity for corporates; and balance sheet leverage should moderate, with an improvement in cash flows, it said.

Barclays said Indian equities have had a strong first half.

Please click NEXT to read further. . .

Please click here for the Complete Coverage of Budget 2014 -15


Image: Barclays said Indian equities have had a strong first half.
Photographs: Reuters

Prev     Next

Budget may focus on tax reforms: Barclays

Prev     More
Prev

More

While it is positive over the medium term of three years, Barclays expect Indian equities to consolidate over the next six months as fundamentals play catch-up with valuations.

On the positive side, Barclays believes that quick resolution of various policy issues like coal allocation norms, land acquisition bill, national level Goods and Services Tax or administrative issues like environmental clearance, taxation disputes could lead to a sharp rally in cyclical stocks.

Please click here for the Complete Coverage of Budget 2014 -15


Image: Barclays expect Indian equities to consolidate over the next six months.
Photographs: Illustration by Uttam Ghosh/Rediff.com

Prev     More
© Copyright 2014 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.