Markets are expecting reforms-oriented Budget this time: Hemindra Hazari

In a chat with ET Now, Hemindra Hazari, Market Expert, shares his views on markets. Excerpts:

ET Now: What could lift off the market, do you think it would have to be a bullish market friendly budget and would we be foolish to even expect that at the current juncture?

Hemindra Hazari: The government has been indicating that the budget is going to be extremely reforms-oriented. Markets are quite happy to hear that. However, I believe that the real options for the government are rather limited because what we are hearing is that the subsidy payments will be squeezed out and the payments will be transferred for capital expenditure.

If that does happen, those sectors where the capex is targeted will help but from a macroeconomic perspective, the aggregate demand will actually remain the same or may even decline. So, the actual constraints are rather tight for the government.