Budget key to market, only that can drive the economy now: Kotak MF

This year's Union Budget is key to the stock market as the investors are looking up to the government to devise ways to boost the consumption which has taken a hit after the demonetisation of Rs 500 and Rs 1,000 notes on 9 November.

According to Harish Krishnan, Fund Manager at Kotak Mutual Fund, only steps in the budget can drive the economy.

The Bombay Stock Exchange (BSE) building is illuminated during the Diwali special trading session celebrating the annual Hindu festival of lights in Mumbai November 3, 2013. India's benchmark BSE share index rose to a second consecutive record high in a special trading session on Sunday, led by gains in Indian Bank, Tata Motors and ONGC on expectations of better quarterly earnings, while strong foreign flows continued to boost sentiment. REUTERS/Danish Siddiqui (INDIA - Tags: BUSINESS RELIGION) - RTX14YO5


"All in all what we think is that there are few sectors which have got hit on account of demonetisation. At this point of time the budget, every year we make a lot of song and dance about it, but this year really it looks to be the key event for the year. Because they are pretty much the only team having any kind of power to drive revenue or to drive demand at this point of time," he told CNBC-TV18 in an interview.

Ever since the demonetisation announcement, the BSE Sensex has lost 2.5 percent, with the investors losing Rs 2.30 lakh crore.

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Published Date: Jan 10, 2017 19:14 PM | Updated Date: Jan 14, 2017 20:04 PM

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