It is Budget day again and disappointment should be less, as expectations are pretty low. India’s growth engine will continue to roll on at the current pace next year as well, but problem areas still persist. High inflation, a yawning fiscal gap, widening current account deficit, dwindling FDI, less-than-adequate infrastructure, policy logjam and corruption are among the critical ones.
Though all of these issues need urgent attention, it would be too much to expect from the FM in light of the upcoming assembly polls. Markets would also love to hear about the definite timelines on the rollout of GST and DTC. So, keep your fingers crossed and hope for the best.
The start is likely to be a subdued one amid some weakness in Asian markets. The US and European markets advanced on Friday as oil prices softened. From the technical perspective, 5550 will be a crucial level to watch on the Nifty. A decisive close above 5550 will signal potential reversal in trend. Till then, the trend is going to be volatile with a slightly negative bias.
Watch out for important data points like auto sales, cement volumes, PMIs, trade data, ECB rate decision and US jobs report.
