The markets did not expect much from the Union Budget and the Budget did not give much to the markets either. In that sense, it met market expectations.
So what do the financial markets make of the Budget estimates on growth, inflation and fiscal deficit?
In an exclusive interview to Firstpost, Arjun Parthasarthy, editor of www.investorsareidiots.com, an investment website, said the markets arelikely to beskepticalof all the growth numbers the government has projected for the new financial year starting 1 April, especially since it failed to meet almost every forecast made for the current financial year.
In terms of the outlook for the currency market, the expectation is that the rupee is likely to strengthen in the medium term on the back of solid investor flows - but that trend might not be sustainable.
The US dollar is a strengthening currency and 2012 could very well be the year of the greenback, said Parthasarthy.
Global liquidity is also expected to be comfortable this year, especially because of the continued fund injections from global central banks.
Back home, it's time for the Reserve Bank of India to cut the repo rate, said Parthasarthy, adding that "there is no need to keep the rate at 8.5 percent."
Watch the whole Firstpost interview above.