After the union budget Indian stock market gained momentum. The 750 plus points rally post budget was the clear indication of a bull rally. Disinvestment programmes in the pipeline more and more traders attracted towards Indian stocks. From the current levels the Indian indices will go upwards in the recent future.
Governmet policies regarding fiscal consolidation and foreign investment would allow more capital inflow into Indian stock market. The budget proposals regarding the banking sector reforms and pumping of huge amount of money for infrastructure development are the major plus points prevailing in Indian stock market. In the long term infrastructure companies will be hot picks and also good performing financial services companies.
Government likely to collect more money from the 3G auction. This in turn beneficial for telecom companies. Airtel, now at buyable price range will be the main beneficiary. Tax slab adjustment is another major development and also serve positive inputs to the market. Indian industrial growth is slowing taking up momentum, industrial growth means economic growth!. Credit growth was hovering around 11-12% in December 2009 would accelerate to above 15% in 2010. The Eurozone crisis slowly settles down, sigh of relief for the markets all over the world. EPS for the sensex scrips is expected at Rs.840 in FY10, Rs. 1096 for FY11 and Rs.1264 for FY12. Where as it is estimated that fiscal deficit will come down to 4.1% with in four years. Happy days for FIIs estimated. Considering major factors property companies will not be at this moment. Auto sector will be outstanding now. Especially good movement expected in Mahindra and Mahindra, Ashok Leyland.
After the third quarter results announcement there will be some profit booking in Indian market. That will be an opportunity. Going ahead there will be positive sentiment in the market through out the first quarter of the next financial year. Invest in index stocks, buy them at lows whenever an opportunity arises.