Finance Minister, Nirmala Sitharaman has heard the cries of industry, individuals and investors. It is heartening to see a FM address so many issues of industry and individuals. What's most interesting was she addressed liquidity issues, MSME issues, auto industry issues, litigation payment issues and also the tax surcharge on capital gains.
The markets are likely to be extremely pleased with the changes and they may surge once again. In all probability we may see the Nifty conquer the 11,000 points mark in trade next week.
"The Finance Minister has undone most of the damages caused by her maiden Budget speech by rolling back the surcharge on FPIs and domestic investors. This is a welcome step and markets are expected to cheer for it.
Release of Rs 70,000 crore upfront for the PSU banks and other major announcements for easing crisis in NBFCs will help in credit off take. Similarly, allocating Rs 30,000 crore to NHB will help affordable housing and realty sector. The decision to pass on rate cuts to the borrowers will be a big relief and will help in reducing cost of capital besides boosting credit growth & consumption.
The symbolic measure of withdrawing imprisonment clause for CSR violations will help sentiment of industry & wealth creators. Slew of announcements for Auto sector will help in the revival of Auto industry. The best part is, FM is now open to act on Industry feedback and has promised to announce a few more stimulus measures in the coming weeks. After this much awaited booster doze, I expect market to form base around current level and inflows will be witnessed in broader markets among quality mid cap & small cap stocks. We may witness rally in the favorite stocks of FIIs which majorly constitute our benchmark Index," Mr. Rajiv Singh, CEO, Karvy Stock Broking said.
Buy good quality stocks
However, if you are looking to buy, it would be a good idea to buy into good quality names. Among the gainers in trade next week could be auto, banking and NBFC stocks. Most of these stocks have been badly battered with some like L&T Finance Holdings, Yes Bank, Karnataka Bank all crashing to 52-week lows last week.
In fact, we may see some smart reaction to share prices, led by the return of Foreign Portfolio Investors. However, the global markets are a tad week, which may limit the gains. For those with a long-term perspective it maybe a good time to buy.