Budget season is always expected to bring cheer for long term investors and other market players as the economy get higher liquidity into various themes of the country. Rural Sector, Consumer goods, infrastructure and capital infusion in Public sector banks always get the attention of the crowd. Budget FY20 is going to attain more limelight as the year has welcomed the first female Finance Minister Nirmala Sitharaman which is going to add goosebumps in market participants. Therefore, big reforms and entrepreneur’s friendly policies are going to deliver by the Nirmala Sitharaman-led-budget to fuel the economy. Still, the market is likely to remain on the tenterhooks until the government comes forward with a lot of goodies for the market participants.
We have collected views from various market experts that will guide the investors to construct their strategy after the Union Budget announcement:
Vikas Salunkhe, Nirmal Bang Securities
Nifty50 is expected to move higher and fresh highs can be seen in July series near 12,200-12,300. In tomorrow’s budget, agriculture and realty stocks will be in focus. The ministry of finance is likely to come up with various schemes to deal with the water problem which will boost stocks such as Finolex pipes will be in focus. In Fertilizers space, Chambal and Deepak fertilizer will keep the limelight. Another sector which could benefit from the announcement of recapitalization would be PSU and Private Sector banks.
This would be an event based rally for the index; however market expected to correct around 10-12 % from August expiry till February 2020. In the absence of domestic triggers, global factors will dominate the trend, largely on the negative side.
Mr Sumeet Bagadia, Choice Broking
Nifty will scale up to 12000-12150 and it would be an opportunity if it slips near 11,700 to add the index. In the Budget announcements, cement stocks will be in focus in terms of building a next-generation infrastructure that might boost stocks like Ultratech cement, ACC & Ambuja. In banking space, PSU bank will be good picks”.
Mr Nitin Murarka, SMC Global Securities
Nifty50 is trading in an upward trending phase in the current series and a new high is expected in the market till 12,300 levels. Large caps stocks will be good picks in the budgetary month like Reliance Industries, L&T, and HUL.
Mr Vinit Bojlikar, Ventura Securities
Markets do not have many reasons to rejoice after today's event, as after that we are gearing up for Q1 2019 which expected to carry the problems of previous quarters. There are plenty of reasons for the market to go down like high valuations of corporates, global uncertainties & Operators build up movements. The defensive bets are PSU stocks which are rich in valuations & healthy revenues.