The Budget proposals for 2015-16 are unlikely to improve corporate bottomlines immediately and may not enthuse the stock market to prop up the current valuations. However, the combined effect of the proposals would bring long-term gains in the corporate fundamentals.

These were the key takeaways from the post-Budget deliberations, organised by ANMI eastern region chapter here on Saturday. Experts felt that the Budget, though may not prove to be a game-changer in the short-term, but laid foundation for a strong growth path for the future.

PP Gupta, MD of Techno Electric & Engineering Co Ltd, said if the rate of interest remained moderate and the currency stability was ensured, the Budget provisions would help corporates improve profitability in the next couple of quarters.

“The Budget would kickstart the capital expenditure cycle and send positive signals to global investing community in terms of ease of doing business in India," Gupta added. It is clearly strong on direction, he felt.

Stock analyst Rajat Bose said the market expectation was too high from the 2015-16 Budget. “Despite weak corporate performance, particularly in the October-December quarter, the market valuations had peaked on hopes of a game-changer Budget. Post-Budget, many of the valuations cannot be sustained or justified. The benchmark indices now are likely to see downward correction. There are huge open positions," he pointed out.

Amitabh Kothari , Chartered accountant, described Arun Jaitley’s second Budget as lawyer’s Budget. Speaking on the direct tax provisions, he said the devil was in the details. “The euphoria generated by the proposal on the roadmap for reduction of corporate tax died down as soon as impact of simultaneous withdrawal of exemptions became clear,” he explained.

The off-Budget hike in petroleum production prices on Saturday was also a dampener for the positive sprit, he mentioned.

Sushil Goyal, tax expert, said the Budget broadened the service horizon – the mutual fund distribution was also brought under its ambit including a few other areas of services. “The Budget proposed to recognize digital invoices as a precursor to the GST roll-out, he explained.

Goyal said Budget paved way for amendment of rules to make reimbursements taxable.

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