27 February 2013


It is good that the markets are going into budget with weakness.
In fact last month when the Finance Minister was meeting foreign investors and FIIs and all that, you could feel that he is really concerned about the equity market and we all know that over the past five years, most of them have not made money into equity markets and most of the money has been into gold and into property. So some positive steps in the budget like reducing the short term because if you see the government revenue from short term capital gain tax over the past few years, it has been very low. So one of the things which the Finance Minister could do to really bring back the good mood in the market would be slashing the short term capital gain tax from 15% to 10%....
So probably that will lift the sentiments and get retail investors back into the market and at the same time, we will not be losing anything much on the revenue front. So this is one step which we are expecting in the budget, cutting down the short-term tax from 15 to 10. The union budget for 2013-14 needs to have initiatives to promote skill development, research and higher education in order to boost employment in the organised sector, say experts. Though markets could trade in a tight range of 5800-6000, we expect benchmark indices to bounce .It is not a smart idea to stand in front of an event and trade futures. A good budget could take the market higher by about 80 to 100 points. While we all like to believe that our market is controlled by the budget, the FM and local factors, the issues are more global. Fund flow comes in from global sources so what matters now is that whether the global correction which had started couple of days back that continues or that was a small dip which gets bought into. 


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