Budget Keeps The Promise; Market Hits High
Feb 03, 2017 | 16:44 PM IST
Feb 03, 2017 | 16:44 PM IST
Market This Week
Market welcomed the most awaited event of the recent time, the union budget. The budget provided big relief for the investors as there is no change in the long term capital gain tax and Finance Minister also avoided to tinker with the securities transaction tax. These unchanged things boosted the sentiments of new entrants as well as improvement in DIIs buying was noticed post budget. Post budget Nifty added more than 200 points in couple of sessions. Finance Minister avoided exaggeration in the budget speech, keeping things simple and clear for the people. Infra, banks, real estate were happy with the budget while agriculture sector stood on the top of the list.
Movers & Shakers
There is hardly any time for the people to decode the Budget carefully as RBI monetary policy meeting, scheduled next week, is ready to swing the market again. Expectations from the RBI Governor are high this time as far as rate cut is concerned as in the last quarter he had kept the rate unchanged which has heightened the hope of rate cut in this quarter. In the run up to this meet most of the Banks and NBFCs have already slashed their rates in the last month.
Key Market Drivers
The Union Budget 2017, presented on Wednesday by Finance Minister Arun Jaitley, was hugely focused on farming sector, improvement of rural population and upgrading infrastructure. The budget has also provided plenty of provisions for financial sector, health care and public services. The objective of these provisions is speedy accountability, better tax administration and fiscal management for the honest tax payers. Owing to these developments some of the banking and infra stocks performed well in couple of sessions post budget
Event Watch
Post RBI policy, UP elections could come on the driver's seat of the market. As the elections have good potential to swing the market on either side of the court, investors will be on their toes throughout the course of these elections. Considering these events, market may remain volatile but the primary trend should be positive as FIIs are expected to continue their buying spree in India equities.
Lloyd Electric and Engineering is on up side while Jet Airways is on down side.
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