>ECONOMY (KOTAK SECURITIES)

FY2010 Union Budget: Strong on paper: We expect FY2010 Union Budget to deliver something for all, without a serious attempt to control rising costs. It is likely to push up social spending. increase subsidies and provide for infrastructure investment. The government may attempt to meet the likely higher spending through additional revenues(tax roll backs and disinvestment). We expect budget to be temporarily positive for equity, bond and currency markets.

■ Headline fiscal numbers may be positive but follow through action more relevant.

■ Tax cuts roll-back, asset sales and licensing revenues to support inclusive growth.

■ Key expectations and impact on market and sectors.

■ Market is fully valued hence, recommend defensive stance

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