Positive Budget is expected from the GovernmentFeb 13, 2016(12:31)
Indian government has lots of work in hand to bring back the confidence and feel-good-factor to Indian business and markets. The best opportunity at present is the upcoming Union Budget 2016, scheduled to be announced on February 29th, 2016. With crude oil prices at a record low, Indian macros are robust in terms of fiscal deficit and current account deficit. It’s time for the Indian government to support Indian businesses with well-deserving and long-awaited reforms. GST and Bankruptcy Bills in all willingness should be passed in the upcoming Budget session of the Parliament through political consensus.
Indian businesses and markets await direction to bring back rejuvenation. Even though the recent GDP growth numbers are above 7%, there is a sense in the market participants that somewhere things have slowed down.
Time is now right to re-write India’s growth story. This is a best opportunity to take global slowdown in the stride rather than becoming a victim of it.
The biggest expectation from the Budget 2016-17 is addressing the glut of issues – some pending and some half-addressed that await structural and viable solutions. Palpable outlining of goals, most importantly backed by action plans and accountability, is likely to be the theme for this year’s budget.
Thanks to the sensational correction the Indian markets are witnessing, several stocks are available on capital market at deep discounts. Therefore, this is the right time to invest preferably for a long-term and reap the benefits later.
It’s time to act. Predicting the bottom levels in these volatile markets is practically impossible, but one thing is for sure that the correction is in no way going to be a long lasting affair. If India’s growth story was appealing at Nifty 8000 or 9000 levels, it’s all the more convincing at the valuations of 6900.
Chinese slowdown, Crude Oil price fall and Dollar strengthening are all well documented global concerns. However, there are plenty of companies and stocks who are not that dependent on global factors. For instance, irrespective of Chinese slow down, Indians will continue their spending in terms of washing machines, refrigerators, watching movies, and will take housing loans, etc. There are several themes which are entirely Indian in nature. Furthermore, investors shall focus on companies with low debt and low promoter share pledge. It is advisable to strictly stay away from the companies with high debt and high promoter share pledge.
Also, as foreign investors are selling Indian assets, it’s high time that Indians shall start buying Indian assets.
Conclusion: As Indian government will be busy putting together the Union Budget, Indian investors should be busy building up their portfolios. Focus on buying quality stocks with low debt and low promoter share pledge.