Trade Nivesh | Top 10 stocks to buy if market revives post full Union Budget
Equity investors on Dalal Street are waiting for the full Union Budget to see if it contains what is needed to revive the domestic equity market and put it on a rising trajectory.
There are expectations that Finance Minister Nirmala Sitharaman would announce some policy measures that can boost the sagging economy, create jobs and to address rural distress, among other key concerns.
Equity benchmark Sensex has risen around 10 per cent since the last full Budget in February 2018, riding a handful of stocks such as RIL, HDFC twins and Bajaj Finance among other, while 80 per cent of stocks in the broader market have eroded investor wealth in the same period.
“The market is at an all-time high but there is no excitement there due to the polarisation. Stocks are going from hero to zero in no time. Somehow, the index is refusing to reflect the uncertainties like delayed monsoon and NBFC crisis, or ongoing economic slowdown,” said Raamdeo Agrawal, a market veteran and Joint Managing Director at Motilal Oswal Financial Services.
The Union Budget is a very big event for the market, as it will hold cues on what the government is planning to do over the next five years.
“Right now, the market is ignoring good things in the economy and focusing only on the slowdown. As an investor, you should think about the next five years. The strong political mandate for the government has a lot of meaning. I am cautiously optimistic and remain invested in the market. I would not wait too long for further clearance of the sky to decide my further allocation,” Agrawal said.
Speculation is rife that the government will address financial sector troubles like rising non-performing assets and liquidity crisis in NBFCs, which will in turn help lift consumption demand. Therefore, there could be action in sectors like auto, FMCG, housing and building materials.
“Specific sectors which might benefit from this Budget include healthcare or pharma, banking, FMCG and housing finance,” says Arun Thukral, MD & CEO, Axis Securities.
Equity investors on Dalal Street are waiting for the full Union Budget to see if it contains what is needed to revive the domestic equity market and put it on a rising trajectory.
There are expectations that Finance Minister Nirmala Sitharaman would announce some policy measures that can boost the sagging economy, create jobs and to address rural distress, among other key concerns.
Equity benchmark Sensex has risen around 10 per cent since the last full Budget in February 2018, riding a handful of stocks such as RIL, HDFC twins and Bajaj Finance among other, while 80 per cent of stocks in the broader market have eroded investor wealth in the same period.
“The market is at an all-time high but there is no excitement there due to the polarisation. Stocks are going from hero to zero in no time. Somehow, the index is refusing to reflect the uncertainties like delayed monsoon and NBFC crisis, or ongoing economic slowdown,” said Raamdeo Agrawal, a market veteran and Joint Managing Director at Motilal Oswal Financial Services.
The Union Budget is a very big event for the market, as it will hold cues on what the government is planning to do over the next five years.
“Right now, the market is ignoring good things in the economy and focusing only on the slowdown. As an investor, you should think about the next five years. The strong political mandate for the government has a lot of meaning. I am cautiously optimistic and remain invested in the market. I would not wait too long for further clearance of the sky to decide my further allocation,” Agrawal said.
Speculation is rife that the government will address financial sector troubles like rising non-performing assets and liquidity crisis in NBFCs, which will in turn help lift consumption demand. Therefore, there could be action in sectors like auto, FMCG, housing and building materials.
“Specific sectors which might benefit from this Budget include healthcare or pharma, banking, FMCG and housing finance,” says Arun Thukral, MD & CEO, Axis Securities.
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