Business Bureau :
THE stock market participants are anticipating an industry friendly Budget with Finance Minister announcing big bang reforms to boost India’s economic growth rate. The investors are expecting that the worst is over for the economy and have set their eyes on Q3 earning growth and Union Budget, said CA Kailash Jogani while talking to The Hitavada. He said that the investors can rest assured that the there are positive signs of GDP growth rate bottoming out at 5 per cent.
Some of the major expectations of investors from the Union Budget are tax free Long Term Capital Gains and lowering of Dividend Distribution Tax to 10 per cent from the existing 20 per cent. On the international front, the Iran-US conflict may not take aggressive turn due to which crude oil prices are well below $70 per barrel which is beneficial for the country, he said. Also, the US and China have agreed to a trade agreement which is good for world economy.
Another positive thing is that the Government may increase its investment allocation in infrastructure sector. Many positive reforms are being brought in by the Government to stimulate the economy and investors can expect the pre Budget rally to resume its upward trajectory, he added. CA Julfesh Shah, noted analyst of the stock market said that the bourses continued its upward momentum for the third successive session amid positive global cues, ease of war-tension between US & Iran and in anticipation of signing of the trade pact between US & China.
The start of the earnings season on an optimistic note led by Information Technology major- Infosys contributed to positive sentiments in market. Investors are advised not to be adventurous by taking positions against the major direction, he said. According to CA Nirav Panchmatia, Founder CEO of AUM Financial Advisors said that multi asset funds that invest in equity, debt, gold and asset allocation funds that actively shift money between equity and debt are the 2 best approaches today. Besides the above two categories of mutual funds, debt mutual funds are an investors safest bet today vs bank FDs whose post tax return in less than 5% according to Nirav who appears regularly on Bloomberg & CNBC financial planning shows. “Do take professional advice rather then self medicating yourself and loosing your hard earned money is his advice to investors,” he added.