Market View

Correction in our markets is not likely to be very significant and long. Budget excitement is likely to start by next week. This weakness presents a good opportunity for short term investors and traders. Buy into Financials; IT, Automobiles and keeping forthcoming budgetary announcements in mind accumulate stocks of companies dealing in railway components, defense equipments, irrigation infrastructure, fertilizers and rural development. Though nothing in the markets can be said with certainty yet the risk reward scenario at the present stage is very favorable for short term buying. Usually the follow up to the Union Budget is accompanied by widespread buying and speculation. This time too it is not likely to be very different. Given the impressive line up of companies in which the GOI proposes to disinvest, excitement is likely to return back to the markets if and when the global markets stabilize. Economic and corporate data emerging out of our markets continues to be very robust and barring any incremental negative development in the International Arena this is surely a great opportunity for buying. Further, the Government also needs to keep the markets buoyant as disinvestment is a must if it has to bring the burgeoning fiscal deficit under control. So expect favourable policy announcements going forward and invest your surplus into the markets. For conservative investors buying of Nifty 4700 put may provide some security and comfort in case our assumptions go wrong.