Budget 2010 :Benefit to Stocks/sectors you should bet on post Budget
Finance Minister Pranab Mukherjee on Friday came out with a Budget that could be described as a fine balancing act.
While a lower fiscal deficit in the financial year ahead, resulting in a lower government borrowing, soothed the stock market’s nerves, an overhauled personal tax structure provides relief to individual taxpayers. Not surprisingly, stock markets gave a rousing welcome to the Budget and rose immediately as the FM presented his speech.
“The Budget was good. Coming back to fiscal discipline is a good move,” said Investment Advisor PN Vijay. Pranab Mukherjee also sought to raise excise duty for sectors like cement, capital goods and autos, in a mild way — the 2% hike was less than the 4% some quarters were expecting.
The Budget was also growth-oriented with financing incentives for real estate, infrastructure and agriculture continuing, said Vijay Bhambwani of bsplindia.com. “Stocks like Mahindra & Mahindra, Larsen & Toubro, IRB Infra and Tata Power would gain.”
Another key announcement in the Budget was that the RBI would consider giving banking licences to non-banking financial companies (NBFCs). “NBFCs and PSU banks are good picks now,” Vijay said.
Investment Advisor SP Tulsian said the markets are poised to give good returns in four-six months and advised buying stocks like Maruti Suzuki, IFCI, GMR Infra and IDFC.
While the markets got something to cheer, after witnessing seeing consolidation in the past few weeks, weak global cues could remain the party-spoiler ahead. So even as specific sectors get a potential earnings boost, the overall global investment climate continues to remain tepid. “The markets are still dependent on the global markets, commodity prices and global currencies,” said VK Sharma of HDFC Securities.
Popularity: 18% [?]
Category: Budget
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
