NEW
DELHI: With the Delhi elections out of the way, it's time for
investors to shrug off the effects of AAP's landslide win and
concentrate on next big trigger hitting the markets: The Union
Budget.
Market participants, experts say, should now focus on the prevailing earning season and upcoming Budget for further cues. Even if AAP forms a government in Delhi, it would not really hamper the reform process, they add.
There is lot of hope from finance minister Arun Jaitley as he will have a tall task of bringing the economy and growth back on track. The AAP win will clearly weigh on his mind.
However, analysts across brokerage firms are not that worried. They say AAP's win would be sentimental negative and it would not, in any way, impact government's decision-making process.
"At this point, markets will be much driven by corporate earnings and budget reform expectations," says Vijay Singhania, Founder at Trade smart online. "Investors are advise to stay invested for short to medium term. One can take long position in banking and IT sectors," he adds.
There is lot of optimism from investors who are expecting Jaitley to announce bold reforms that will catapult Indian economy back on track. The GDP numbers released post market hours on Monday suggested that economy is poised to grow 7.4% in the current year, bettering 6.9% recorded last year.
"The central government has announced several reforms in last few months but their implementation and timely completion would largely depend upon budgetary support. Market participants should focus on the prevailing earning season and upcoming Budget for further cues," he adds.
The correction in last seven days was much expected as it was after a big slew in market. In the last month bull run, market increased from 8102 to 8952 (both cash nifty) i.e. 850 points. It is already down 383 p ..
Market participants, experts say, should now focus on the prevailing earning season and upcoming Budget for further cues. Even if AAP forms a government in Delhi, it would not really hamper the reform process, they add.
There is lot of hope from finance minister Arun Jaitley as he will have a tall task of bringing the economy and growth back on track. The AAP win will clearly weigh on his mind.
However, analysts across brokerage firms are not that worried. They say AAP's win would be sentimental negative and it would not, in any way, impact government's decision-making process.
"At this point, markets will be much driven by corporate earnings and budget reform expectations," says Vijay Singhania, Founder at Trade smart online. "Investors are advise to stay invested for short to medium term. One can take long position in banking and IT sectors," he adds.
There is lot of optimism from investors who are expecting Jaitley to announce bold reforms that will catapult Indian economy back on track. The GDP numbers released post market hours on Monday suggested that economy is poised to grow 7.4% in the current year, bettering 6.9% recorded last year.
"The central government has announced several reforms in last few months but their implementation and timely completion would largely depend upon budgetary support. Market participants should focus on the prevailing earning season and upcoming Budget for further cues," he adds.
The correction in last seven days was much expected as it was after a big slew in market. In the last month bull run, market increased from 8102 to 8952 (both cash nifty) i.e. 850 points. It is already down 383 p ..
