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The flow of excellent
corporate results in q3 will provide fundamental support to markets. However,
if the budget proposals are distinctly market-unfriendly , there is a
probability of a sharp correction. We should will eye the annual report to gauge the economic policy of the
government. The survey is typically presented a day before the union budget.
But this year it is being brought earlier than usual because the day before
budget this time is a sunday. A number of nifty companies will present their
quarterly numbers today including tata motors, cipla, dr reddy’s labs, etc.
Expectations are high that finance minister nirmala sitharaman will unveil a budget focused on growth. The catalyst that could propel india’s gdp into double digits and on which nirmala sitharaman could rely may be infrastructure. “we do believe that the government will go for a growth theme in the budget, to bring the economy back to normalcy and it would primarily focus on the push towards the infrastructure sector. There are high expectations that the government would increase allocation towards infrastructure schemes which will boost the order book of capital goods companies as well as drive volumes of cement companies. Companies such as l&t, siemens india, abb india, ultratech, ambuja and acc would benefit. Similarly, visha wagh of bonanza portfolio is focusing on l&t ltd, pnc infratech ltd, ultra tech cement ltd, and ambuja cement. In this budget, the focus is expected to be more on roads, city infra and water transmission. We would recommend taking positions in l&t, knr constructions and pnc infratech in the road infrastructure space, and ratnamani metals & tubes in the water transmission segment. Further expects the union budget to carry announcements related to affordable housing, it deductions on home loan interest, special deductions for rent on salaried class. Indiabulls housing, capacite infraprojects and phoenix mills are his picks in the real estate space.
