While the markets have risen on the back of expectations, a lot will depend on the pace of reforms and demand revival.
Last Monday’s market gains of 17.34 per cent or 2,111 points on the BSE Sensex are not just historically significant due to the quantum, but it also signals the elimination of key political uncertainties surrounding India’s long-term growth story.
The clear mandate to the Congress-led UPA government suggests that it will now be able to undertake reforms in an unhindered manner, including some of the hard decisions it failed to implement due to the opposition from the Left.
Also, the Congress party now seems to have an improved its bargaining power with allies, which will provide stability as well as flexibility in decision making. The election outcome also suggests that voters have largely preferred those that are perceived to be effective administrators.
The cases of Delhi, Gujarat and Bihar are examples pointing to this trend. This in turn, indicates that the UPA will be under constant pressure to deliver up to the expectations of the people, including the markets. But, if the government is not able to live up to these expectations, it may prove difficult for markets to sustain current valuations.
According to the report, these share will make profit after the budget...
Last Monday’s market gains of 17.34 per cent or 2,111 points on the BSE Sensex are not just historically significant due to the quantum, but it also signals the elimination of key political uncertainties surrounding India’s long-term growth story.
The clear mandate to the Congress-led UPA government suggests that it will now be able to undertake reforms in an unhindered manner, including some of the hard decisions it failed to implement due to the opposition from the Left.
Also, the Congress party now seems to have an improved its bargaining power with allies, which will provide stability as well as flexibility in decision making. The election outcome also suggests that voters have largely preferred those that are perceived to be effective administrators.
The cases of Delhi, Gujarat and Bihar are examples pointing to this trend. This in turn, indicates that the UPA will be under constant pressure to deliver up to the expectations of the people, including the markets. But, if the government is not able to live up to these expectations, it may prove difficult for markets to sustain current valuations.
According to the report, these share will make profit after the budget...
- Nuclear energy & Power : L&T, Areva T&D, HCC, Suzlon, PowerGrid.
- Disinvestment : NTPC, Neyveli, PFC, IOC, SCI, ONGC, NALCO, SAIL, REC.
- Infrastructure : GVK Power, GMR Infra, L&T, Reliance Infra, IRB Infra, IVRCL.
- FDI : Pantaloon, ICICI Bank, Everron, Educomp.
- Banking : ICICI Bank, HDFC, BoB.
- Agriculture & Rural : Jain Irrigation, M&M, Hero Honda, SBI.
- Real estate : HDIL, DLF, LIC Housing.
- Telecom : Bharti, Idea, Rcom, TTML.
- Oil & Gas : RIL, ONGC, Oil Mktg Cos.
For More read here .
As I already said that the market gaints have faith in Congress government, so the market is hoping for the best from the government. As the government is also well aware of the fact that people have large expectations from them. Read out the previous post here.
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