Finance Minister will be presenting the Union Budget of India today. The common man as well as markets have high hopes from the budget as always. The speculation regrading the share market’s moves are very high related to both an upswing to Nifty touching 9,000 or a downfall in Nifty till 6,000 levels.
There are still speculation over today’s presentation due to the sudden death of former union minister E Ahamed. The convention is to adjourn the house but it is not a rule. The Lok Sabha speaker will take final call on this issue.
However the stock market is hoping for a populist budget with huge announcements on tax rate, different benefits for sectors, increased capital expenditure as well as other measure to lift up the growth of Indian economy. If these announcements come, the Nifty will swing high on sky to touch the 9,000 levels. Many market participants are expecting that market will slide as the amount of high hopes that this budget carry, are impossible to fulfill.
Investors are expecting that as the feel good factor from demonetisation was short lived, Jaitley may give benefits on tax slabs and rates. The markets have risen up strongly in the ongoing pre budget rally, however it reality will be tested now.
The market participants at all levels are divided over the outcome of budget on the markets with mostly favoring sector specific positivism.