Here are some of the triggers for the post budget week.
· Insurance companies are likely to react negatively to budget changes. In addition, the LIC listing and making Section 80C investments optional likely to hit demand for life and health protection.
· Zero allocation for recapitalization of banks is negative for PSU banks. Budget has put a halt to bank recap after allocation of Rs.3.5 trillion.
· Higher fiscal deficit target at 3.8% likely to hit bond yields and will be negative for rate sensitives like banks, NBFCs and real estate.
· Personal tax tweaks are likely to encourage spending over saving. Shift to new regime positive for FMCG and consumer durables stocks.
· RBI policy during the week will surely be keenly watched. With inflation at 7.35%, rate cuts almost unlikely
· All eyes will be on the $174 billion China stimulus. Apart from negating the impact of Corona pandemic, it will make EMs more liquid.
· Allocations to water and infra positive for stocks like L&T, IRB and VA Tech Wabag which could benefit from big orders.
· The Assemble in India approach is positive for electronics and could open doors for big outsourcing contracts for Redington and Dixon Tech.
· Data centre parks will be positive for IT stocks like HCL Tech, Tech Mahindra and Wipro as also online education stocks.
· Watch out for some of the major earnings expected this week which include Titan, Bharti, Cipla, Lupin, M&M and Sun Pharma.
· Weak oil will keep rupee strong in the coming week. With Brent crude falling to $56/bbl, FMCG stocks to benefit and rupee to remain steady on import comfort.
· Manufacturing PMI hits 8-year high of 55.3 for January 2020. This is likely positive for most manufacturing stocks.
· ITC could be the big loser on the downside; being a heavyweight. The skewed duty structure to work against the company.
Here are some of the triggers for the post budget week.
· Insurance companies are likely to react negatively to budget changes. In addition, the LIC listing and making Section 80C investments optional likely to hit demand for life and health protection.
· Zero allocation for recapitalization of banks is negative for PSU banks. Budget has put a halt to bank recap after allocation of Rs.3.5 trillion.
· Higher fiscal deficit target at 3.8% likely to hit bond yields and will be negative for rate sensitives like banks, NBFCs and real estate.
· Personal tax tweaks are likely to encourage spending over saving. Shift to new regime positive for FMCG and consumer durables stocks.
· RBI policy during the week will surely be keenly watched. With inflation at 7.35%, rate cuts almost unlikely
· All eyes will be on the $174 billion China stimulus. Apart from negating the impact of Corona pandemic, it will make EMs more liquid.
· Allocations to water and infra positive for stocks like L&T, IRB and VA Tech Wabag which could benefit from big orders.
· The Assemble in India approach is positive for electronics and could open doors for big outsourcing contracts for Redington and Dixon Tech.
· Data centre parks will be positive for IT stocks like HCL Tech, Tech Mahindra and Wipro as also online education stocks.
· Watch out for some of the major earnings expected this week which include Titan, Bharti, Cipla, Lupin, M&M and Sun Pharma.
· Weak oil will keep rupee strong in the coming week. With Brent crude falling to $56/bbl, FMCG stocks to benefit and rupee to remain steady on import comfort.
· Manufacturing PMI hits 8-year high of 55.3 for January 2020. This is likely positive for most manufacturing stocks.
· ITC could be the big loser on the downside; being a heavyweight. The skewed duty structure to work against the company.