Today, we expect the market to open on a cautious note due to a subdued trend in Asian markets. Given the big event risk, we would advice you to exercise restraint and take a call only after the budget. It wouldn’t be a bad idea to turn colour blind for a few days in the run up to the Budget. But, with the southwest monsoon gradually picking up, the so-called green shoots theory might gain further credence.
A good rainfall will go a long way in enhancing the growth prospects for the Indian economy. The icing on the cake will be a balanced budget with equal emphasis on social welfare programmes and crucial economic reforms. As of now, nobody’s willing to bet what the broad contours of the budget will be. Friday’s big gains were a bit of a surprise, thanks partly to a shift in the way NSE calculates market-cap and weightages of 50 Nifty stocks. Net buying from both, foreign and local funds was pretty good.
A good rainfall will go a long way in enhancing the growth prospects for the Indian economy. The icing on the cake will be a balanced budget with equal emphasis on social welfare programmes and crucial economic reforms. As of now, nobody’s willing to bet what the broad contours of the budget will be. Friday’s big gains were a bit of a surprise, thanks partly to a shift in the way NSE calculates market-cap and weightages of 50 Nifty stocks. Net buying from both, foreign and local funds was pretty good.
Hold all your cards close to chest till next Monday when the Union Budget is out. This seems to be the right approach if one goes by the recent experience during the Lok Sabha elections. Stunned by the surprisingly decisive verdict for the UPA, the market witnessed euphoric, but historic rally. Of late there is a feeling that the post-election celebration was a little premature. As a result, the market has struggled for direction amid uncertainty over Government’s policy roadmap and anxiety over the global situation.
