In the next few days in the run up to the Budget, the market is likely to anticipate the Budget proposals and respond. Even though Budget anticipations are speculative, this Budget will be growth oriented and at the same time fiscally prudent. Growth is top priority which the Government cannot and will not compromise. Tax buoyancy and the RBI dividend bonanza give the finance minister ample room for fiscal consolidation. Therefore, the market will be optimistic on this ground.The unknown factor is regarding any possible tweaking of the LTCG tax. If the tax rate is raised or tenure for LTCG is extended the market will respond negatively to that. A possible Budget proposal that can impact certain segments of the market would be disinvestment. Since PSU stocks are trading at high valuations, the government is likely to go for disinvestment in segments where government ownership is very high. This can increase the supply of stocks in these segments and bring their prices down. Watch out for disinvestment proposals in Railways and defence-related segments.