Don't be distracted by Budget, keep buying market
The investor mood is very positive at the moment and investors are looking for more buy ideas than sell. However, investors may hold off for a bit as the market has already run up quite a bit and may remain in a consolidation phase from now to the Budget. The investors should not get distracted by the Budget and continue buying the market. Do not see a major correction in the market. One can expect announcements pertaining to increase in spending in physical and social infrastructure in the Budget. This increase is likely to be partly funded through increase in taxes – primarily indirect taxes. The government should target subsidies successfully and chalk a clear roadmap of subsidies and social spending. Also the government should do something to recapitalize public sector banks. If finance minister Arun Jaitley manages to deliver on these fronts, the market will be very happy. The government can look to achieve 3.6 percent fiscal deficit target in FY16, but even if it does miss the mark by a little, it won’t be much of a problem for either the credit ratings agencies or the Reserve Bank.
Happy Investing
The investor mood is very positive at the moment and investors are looking for more buy ideas than sell. However, investors may hold off for a bit as the market has already run up quite a bit and may remain in a consolidation phase from now to the Budget. The investors should not get distracted by the Budget and continue buying the market. Do not see a major correction in the market. One can expect announcements pertaining to increase in spending in physical and social infrastructure in the Budget. This increase is likely to be partly funded through increase in taxes – primarily indirect taxes. The government should target subsidies successfully and chalk a clear roadmap of subsidies and social spending. Also the government should do something to recapitalize public sector banks. If finance minister Arun Jaitley manages to deliver on these fronts, the market will be very happy. The government can look to achieve 3.6 percent fiscal deficit target in FY16, but even if it does miss the mark by a little, it won’t be much of a problem for either the credit ratings agencies or the Reserve Bank.
Happy Investing
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