This is hugely positive for the market. This is something which should address the ongoing concerns as well as those structural changes that should have been brought into effect a while back. The rollback of higher surcharge on FPI as well as Domestic investors is a welcome move since it was one of the factors that put a lot of dent on investors sentiment specifically FII and FPI's. Secondly, Auto space which was needing many desperate measures has finally been able to receive few relaxations such as Onetime Fee deferred and at the same time considering various other measures including the scrapping policy. There is a higher depreciation for all vehicles. The BSIV vehicles relaxation until 2020 is also a welcome move since this had a great impact on sales numbers. There was a vacuum that was created in the market and finally may see some air coming in. The important point here is that banks are now expected to pass on the rate cut and at the same time Repo rate linked loans will bring in more transparency. First time borrowers are now likely to prefer this going forward.

The surprise was Recapitalization of PSB which was not expected at this point in time. We rather expected sector-specific measures which would have been related to Automotive, consumer space or so. PSBs like SBI, BOB and PNB may see some incremental improvement in NIMs.

Pending GST refunds within 30 days and in future to be refunded in 60 days is a welcome move. This is going to bring in more smoothness in GST as a system and further will improve its operational aspects while at the same time reducing leakages.

On Monday a GAP UP will surely be seen since this has turned the sentiments. While we have already seen a recovery in the last trading day on the back of hopes this will further put boost the investors/traders community. Nifty is expected to stay above 10700, for now.