Indian Markets To Celebrate Jaitley’s ‘Balanced’ Budget

Finally ending all the speculations on the auspicious morning of Vasant Panchami, country’s Finance Minister, Arun Jaitley tabled his what can be termed as a ‘growthoriented’ Union Budget for the coming fiscal year, amid much cheer from the stock markets and investors across the country. This led to hardly any opposition coming from the Members of Parliament on the Opposition bench, even the bitter critics of Jaitley and his commander, Narendra Modi, failed to attack the Budget this time.

I really praise Jaitley for acting on the long-term capital gains tax reference—immediate after his speech got over, the markets started celebrating and what a day, Sensex went up by nearly 500 points. This shows the faith of the investors in this government and its Finance Minister and his policies. Even the decisions on individual taxes are to be appreciated—this will spread the tax net and eventually help the government to earn more and use the money judiciously. Also to note, this will lead to major boost of consumption when it comes to the economy.

Offering affordable housing sector the much-needed ‘infrastructure sector status’ will have a multiplied effect on the economy. You might have noticed how the real estate players, NBFCs and such related sectors celebrated after Jaitley made this special mention.

As I analyse the Budget document and subsequent markets’ behaviour, I find it as a truly ‘buy market.’ You can go ahead and indulge into heavy shopping from the sectors which have immensely benefitted from this Budget. The markets’ sentiments will continue to remain positive at least till the results of the ensuing Assembly polls are released in March. All eyes will continue to be on the outcome especially from the Uttar Pradesh assembly election. If BJP comes into power throwing the Yadavs out, this will further communicate positivism in the markets.

In this edition of your favourite investment fortnightly, we have come out with a list of 250 large-cap stocks alongwith six recommendations. I am sure, this will help you to direct your investment decisions. You will also find an exhaustive article on the Union Budget and how it has impacted three key sectors and companies which operate from within those sectors. A story on the recipes of investment of the biggies in India’s equity markets also has been added in this edition—you will find it as a good read. It is always interesting to know what has been brewing in the kitchens of your neighbour and learn the right recipes from them.

Let us look forward to the spring embracing us. I am sure you have also noticed the slight changes happening in the weather around you. Sitting at the commercial capital of India, I smell the same— change of the market sentiments: from negative to positive. 

Happy reading, Happy investing.