This post was just published on ZYX Global Multi Asset Allocation Alert.
Unlike the United States, annual budget in India of the central government (equivalent of the federal government in the United States) is one of the most important events that influences the Indian stock market. The budget just presented was mostly as expected. It lays out the ground work for producing a strong macro economic environment and also to implement further reforms. There was fear, especially among foreign investors in the Indian market that the budget would increase long-term capital gains tax. This speculation was due to a statement buy Prime Minister Modi that those making profits from the markets must contribute to nation building.
