Markets try to get 'over' the disappointing budget Stocks on Dalal street are likely to recover from severe crash, we have seen after the budget announcement. Expect the benchmark index or the Sensex to gain nearly 100 points or less than one percent for the day. Markets have lost its momentum as it might take a while for investors to absorb the disappointing news from the FM.
Stocks ended mostly lower Monday as drops in prices for oil and other commodities had investors worrying again that demand for basic materials may remain weak.The Dow Jones industrial average rose 44.13, or 0.5 percent, to 8,324.87, and the broader Standard & Poor's 500 index rose 2.30, or 0.3 percent, to 898.72. The technology-heavy Nasdaq composite index fell 9.12, or 0.5 percent, to 1,787.40. The mood in Dalal Street is currently subdued as the analysts and investors were expecting more from the FM, and were bitterly disappointed. Investors shunned FM's silence on major policy reforms in various sectors like Healthcare, Textiles and the sell off intensified with the announcement of MAT and no change in policy on Securities Transaction Tax. So, what next for investors who are still invested in the market. We strongly believe that the fundamentals of the Indian economy remain strong with or without an encouraging budget. The Indian story is real and one should look at attractive long term opportunities and remain invested in the market. It is not a bad idea to wait for couple of days, let things to cool off and take a call on the markets. The knee jerk reaction although warranted looks a bit overdone and it is time to wear your thinks cap, keep your cool and pick bluechips. Power is one sectors that looks attractive with the government planning to increase its spending by 150% from the previous budget. Tata Power is a clear winner in this space. Tax relief on gas pipelines will give a much needed boost to GAIL, which has been under performing the broader indices for a while. Fertilizer stocks look like a good investment after a small correction. Overall, a flat to positive day of trade on cards. Do not expect heavy action the bourses as it might take a few days for the street to recover from the 'Pranab' shock B.Karthick Research Analyst --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
