Markets, Middle-Class Wait Anxiously, With Crossed Fingers For Budget 2023-24
Lucknow, January 31 || The market is poised for the next policy direction, a long time this year after good run up in the past, as now the retail is refraining to buy as the stock purchased are not showing upward movement or are declining in rates continuously. This is because FII are net sellers and surprisingly in this month after December Rs 16,000/ crores seems a big amount.
For the time being fund managers are optimistically/cautiously positive in near term as well as long term, watching very closely the political developments across world, dollar movement, crude oil prices and in nearest time frame the Budget 2023-24, the last full-fledged budget of the Modi 2.0.
Things have changed over the years since PM Modi came to power in 2014 as the government machinery was put to ground level working and implementing schemes rather than them just being on paper which was highly cheered by markets and corporates.
The parallel black economy is shrinking fast thus routing the hitherto black money back in main stream and thus resulting in higher tax collection and higher government spending on basics infrastructure, defence etc.
The NAV’S of mutual fund schemes are almost stagnant, waiting for direction, a hint from government, policy decisions and action across globe, measuring their impact on Indian economy for the next leap forward, great time to accumulate Stocks and mutual fund schemes for wealth creation objective.
Friends, remember capital protection should be primary objective followed by capital appreciation. At this juncture we feel fluctuations to be regular with great times ahead in near term itself, so don’t let this opportunity go waste put your money to work.
Change your vision to Arjuna and eye your financial targets only. Don’t be afraid of the market fluctuation as it is an integral part of stock market. Be confident in buying quality stocks which have economical backing and proven management like SBI, Tata Power, BLS International, BHEL, CDSL, BSE to name a few and small cap, mid-cap along with flexi cap.
Funds across mutual funds look promising with a time frame of 2-years-plus this year of time correction with price correction and this year onwards a smooth bull run (although a small rally is also expected between February and March this year too). As the budget dates approach fast market analysts expect no change in capital gains.
Some parity between previous regime to the New:
Limit increase in section 80 C as the middle class is feeling the pinch of inflation and EMI too with higher interest rates regime so in order to give relief to middle class and eye the upcoming election the market pundits expect some relief here. Gold and precious metals will keep up the shine for some time but investors should take a long term view rather than short term gains.
The government is known for its harsh decisions for the betterment of the economy so the retail middle class should expect any and only those sops in the budget that are not resulting in revenue loss to govt but there could be some breathers to middle class too as the govt need a lot of cash to secure Indian borders, equip Indian army with latest technology and weapons and push development in infrastructure while also fulfilling social obligations along with smooth functioning of government machinery.
— Akshay Bhargava/Lucknow
(DISCLAIMER : The views expressed here are personal and are based on his professional expertise and experience of the Market)