The new government's economic vision and management of the "political theme" will be among the key aspects to watch in the upcoming Union budget, a Japanese brokerage said on Thursday.
The brokerage said the second half of the year will see "muted returns" on the equities front, and reiterated its year-end target of 24,860 points on Nifty, which is only about 3 per cent higher than the current levels.
The fiscal glide path beyond FY26, when the government has committed to reduce the fiscal deficit to 4.6 per cent, will also be a key theme to look at, Nomura's India Economist Aurodeep Nandi told reporters.
Reminding of the 100-day programmes of the new government prepared by various ministries ahead of the elections, Nandi said getting some idea of the economic vision of the new government will be a key area to watch.
After the election setback, the "political theme" of the budget by the new government dependent on coalition partners will also be keenly watched, he said.
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