Post-Budget reaction - Rohit Gadia, Founder & CEO, CapitalVia Global Research

From market point of view, it may have neutral impact on market because there are not too many negative announcements and positive announcements as Finance Minister has put more focus on Rural, Agriculture & Infrastructure development. Fiscal Deficit Target for FY17 remain unchanged at 3.5%, which is highly positive for the market, also planned expenditure increased by 15.3 % to 5.5 lac Crores because of these expectations have built up for rate cut by RBI governor in coming days. Finance Minister proposed outlay of Rs. 2,18,000 cr for railways, roads in 2017 and NHAI to raise Rs. 15000 cr via bonds in 2017 which will be positive for bond markets as well. Budget brings relief for small tax payers through ceiling of tax rebate increased by Rs. 3,000, Tax rebate on rent paid upped to 60,000 rupees vs 24,000 rupees, Some home buyers to get extra exemption of 50,000 rupee per year. Withdrawal up-to 40% from National Pension plan to be tax exempt at retirement.

Focusing on sectors like Insurance, Health, Fertilisers, Infrastructure. Above mentioned sector will remain in focus giving more emphasis on Rural, Agriculture & infrastructure development. Investors can add the mid-cap stocks from specific sectors like - fertilisers, construction, education etc. in their portfolio which could have positive impact on them, looking at the current budget allocation for these sectors. Nifty will remain in a range of 6,800 to 7,200.

Source : Equity Bulls

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