There are many expectations from this budget since we haven't seen any populist budget till now from present govt which has been focusedas on fiscal consolidation since the beginning of the term. Banking reforms, Jan-Dhan Yojna, PMAY, MUDRA and so on while on the other hand, we have seen a tax overhaul like GST. All this with DeMo as well. The unearthing of projects Like Bharat Mala is itself a massive step. There were certain parameters that were in favor of the government. Falling crude prices, Falling global and domestic inflation, stable Gold prices that led to huge inflow. All this gave the government a comfortable zone that kept them focused on fiscal consolidation and most steps were aimed towards that only. Since govt is nearing 2019, expectations are bound to rise.
Corporate earnings have improved despite few phenomenon and are expecting the budget to keep the focus on fiscal consolidation. But on the flipside expectations of common man, The People, are bound to rise since, change in few policies, certain exemptions, benefits are things which is expected by the common man. To start with, Section 80 C Exemption of 150K is something which is widely expected to rise higher since we have seen a good inflow in terms of investment but the headspace is too small and old with just 15000. If it can be raised it would further improve the investment scenario.
The interest subsidies that are being given on home loan can be marked as per the costs of House and not to be kept static as the pricing model and input costs change over time. DDT should be removed and should work on promoting the distribution dividends to serious investors further improving the sentiment of long term investor in the market. Raising the basic exemption limit is a widely expected sentiment specifically after demo and GST implementation. On the flipside not changing the slab but reducing the rate can be an alternative that will further improve the large base of people's sentiment.
Agriculture and irrigation are sectors that may see some focus in coming budget and is widely expected to see some good news. Stocks related to agri based products and irrigation related business are already doing good and has seen some momentum built up in the last couple of weeks. Jain irrigations can be the pick from this space as it has given some good momentum and is already seeing a base formation at recent lows for a long-term uptrend in 2018 - 19. fertilizer space is doing good and has outperformed in recent times with Chambal fertilizer leading the pack and that is on our radar as well.
Realty as a sector has already seen good news from the last budget due to RERA and may continue to perform well. Few changes in the sector related to interest rate subsidy, single window clearance, Reduction in GST are few challenges that are still lingering over and clearing few of them will certainly give a boost.
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