AAP win: Brokers decode likely impact on BJP's reforms plan
Reforms such as FDI in insurance, coal auctions, and the sale of stakes in in public sector banks, which are more national-level issues, are unlikely to be affected by the outcome of the Delhi state elections, feels
Nomura
The Aam Aadmi Party’s emphatic victory in the Delhi assembly elections is unlikely to distract the government from its path of fiscal discipline and reforms, key brokerages feel. A snapshot of what brokerages have to say on the impact of the verdict in Delhi:
Nomura
The BJP's loss in Delhi could be an exception rather than a trend. There are fears in some sectors that this might push BJP to also renege on fiscal reforms that will require spending cuts on mis-directed subsides and welfare schemes. However, in our view, the union budget (to be presented on 28 February) is likely to reveal whether BJP will turn populist or stick to the fiscal discipline; our bias is the latter. Reforms such as FDI in insurance, coal auctions, and the sale of stakes in in public sector banks, which are more national-level issues, are unlikely to be affected by the outcome of the Delhi state elections.
Macquarie:
Delhi election could serve as a wake-up call for the central government. The largesse due to the sharp fall in crude oil prices needs to be diverted to building infrastructure to kick-start the economy We expect the upcoming union budget to give a fillip to these important areas of infrastructure. The ongoing correction has provided a good opportunity to buy before the growth stimulating budget is presented on 28 Feb. Industrial stocks are under-owned and will be big beneficiaries of a government-led infrastructure build.
CLSA
AAP’s big victory comes as a welcome reality check. We continue to expect the upcoming budget will set the right tone for infrastructure spending but any move away from this path will be a negative. The next big political event will be the elections in the state of Bihar.
Happy Investing
Source: Moneycontrol.com
Reforms such as FDI in insurance, coal auctions, and the sale of stakes in in public sector banks, which are more national-level issues, are unlikely to be affected by the outcome of the Delhi state elections, feels
Nomura
The Aam Aadmi Party’s emphatic victory in the Delhi assembly elections is unlikely to distract the government from its path of fiscal discipline and reforms, key brokerages feel. A snapshot of what brokerages have to say on the impact of the verdict in Delhi:
Nomura
The BJP's loss in Delhi could be an exception rather than a trend. There are fears in some sectors that this might push BJP to also renege on fiscal reforms that will require spending cuts on mis-directed subsides and welfare schemes. However, in our view, the union budget (to be presented on 28 February) is likely to reveal whether BJP will turn populist or stick to the fiscal discipline; our bias is the latter. Reforms such as FDI in insurance, coal auctions, and the sale of stakes in in public sector banks, which are more national-level issues, are unlikely to be affected by the outcome of the Delhi state elections.
Macquarie:
Delhi election could serve as a wake-up call for the central government. The largesse due to the sharp fall in crude oil prices needs to be diverted to building infrastructure to kick-start the economy We expect the upcoming union budget to give a fillip to these important areas of infrastructure. The ongoing correction has provided a good opportunity to buy before the growth stimulating budget is presented on 28 Feb. Industrial stocks are under-owned and will be big beneficiaries of a government-led infrastructure build.
CLSA
AAP’s big victory comes as a welcome reality check. We continue to expect the upcoming budget will set the right tone for infrastructure spending but any move away from this path will be a negative. The next big political event will be the elections in the state of Bihar.
Happy Investing
Source: Moneycontrol.com
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