We expect significant positive measures for the rural economy, in line with the government’s agenda of inclusive growth, infrastructure development and educational reform. Announcement on disinvestment and GST roadmap will be tracked closely. The budget is unlikely to cause any negative impact for equities. However, it may fall short of the triggers to boost the markets. The expected excise hike could act as a near-term depressant for certain sectors
Fiscal prudence is expected to be the primary agenda of Budget 2010-11. This is certainly not the year for industry-specific freebies or any galloping gross budgetary support. Instead, the Finance Minister will aim at bringing down fiscal deficit, largely through stimulus withdrawals, disinvestments and 3G auctions, among others. Inflation control measures (mainly food inflation) will also be a focus area.
Keep profit booking at higher levels, hold delivery, do not over trade stay light, siting on cash will WIN. Budget my surprise all either way. Avoid this pre budget positions.
Happy Budgeting.. oh!! Happy trading..
