FM Arun Jaitley's thoughts, actions to augur well for economy,equities: Citigroup

NEW DELHI: Government's reform measures on GST, labour and land acquisition laws should augur well for the economy and equity markets, global brokerage firm Citigroup said today.

It said there is a lot happening that should see the light soon with respect to Goods and Services Tax (GST), land acquisition law modifications and changes to labor laws.

"The FM's thoughts and actions should augur very well for India's economy and its equity market," Citigroup said in a report on Finance Minister Arun Jaitley's meeting with investors yesterday.

"We were impressed ... believe the market should be too," Citigroup said, adding the government has cleared environmental backlog, FDI in defence and railway infrastructure and diesel deregulation.

Also the resolution to coal sector problems and opening up of commercial mining and planned increased in FDI cap in insurance sector have buoyed market sentiments.

"Action does speak louder than words. The market and mood have moved up ... on expectations yes, but on a lot of action too," it said.

The Minister sees high cost of capital, domestic bank financing, legal framework for contract enforcement and the weak global environment as challenges, it added.