Epaper
US Markets slipped today after a 4 day consecutive rally courtesy Mr.Ben Bernake’s grim outlook on the economy. DOW JONES lost nearly 112 points at 12,582.18 and NASDAQ ended the day by 22 points at 2,331.57. We see this as a one wonder for bears and are upbeat on the US Markets for a medium term only based on technicals.
Indian Markets are in no mood to couple with global markets from the last couple of days though F&O settlement tried to create ripples. Markets are lacklustre and are expected to react sharply on the up today unless Mr.Chidambaram hands over a negative surprise. With very low expectations set in the run up to budget the downsides are negligible. Lets take a peek at the Industry wish list.
1. IT Sector – Looking for an extension of the STPI (Software Technology Park of India) scheme, which expires on March 31, 2009.
2. Telecom Sector – Looking for a cut in license fee
3. Oil Sector – Looking for series of tax and duty changes related to oil product retailing, exploration activities and natural gas
4. Textiles – More sops to the sector like enhanced TUF(Technology Upgradation Fund).
5. Consumer Durables – Looking for more attention in the form of incentives as a slow down is visible.
6. Automobile – Looking forward to a reduction in excise duties.
7. Pharma – Looking for Price control and tax benefit from investments in R&D
8. Agricommodities – We believe this sector is likely to grab major attention today from Mr. FM
9. Fertilizers – More subsidies look imminent here
10. Infrastructure – Looking for more allocations towards the development of infrastructure in the country
General
Positives : Increase in FII investment in sectors like such as media, banking and insurance.
Negatives : Likely tax net on Mauritius registered VC’s
It is always tough to read the mind of the FM, proved number of times. But the expectation that the budget will prefer the common man will be spot on as the Government will try to pacify him along with the political allies in the wake of next year’s general elections.
Majority analysts feel the budget is a non-event. We think otherwise and this is the only opportunity for Bulls to take advantage visible for the next 40 days or so. Keep fingers crossed and the coin tossed till Mr.Chidambaram opens the mystery bag. Have a great trading day.
— Review written by Research Team @ www.indiabears.com
