The markets closed marginally higher this week, as the S&P CNX Nifty gained 64 points. The Nifty ended the week at 11,788 points, as against 11,724 points last week.
Several stocks exhibited increased volatility led by banking and NBFC names. Expect increased volatility ahead of the Union Budget as investors look to tax and other incentives. In the last one year since the Union Budget 2018, a handful of stocks led by Reliance Industries, HDFC twins and Bajaj Finance have gained.
In fact, several stocks have been impacted like delayed monsoon and NBFC. Speculation is rife that the government may revisit Long Term Capital Gains Tax on shares. Having said that it is unlikely that we will see the same change as the government has just introduced LTCG tax.
Markets to remain volatile
Markets are expected to remain increasingly volatile ahead of the Union Budget 2019. Investors can take position in beaten down names. However, one needs to be cautious as well. There are many stocks that currently yield good dividends, including names like IndiaBulls Housing Finance.
Some other NBFC stocks like L&T Housing also look for dividend yields. Many stocks have been badly hammered, including the likes of stocks from the ADAG camp, Eros International, Siti Networks, Navkar Corporation and Cox & Kings.