The first Budget of NDA is the next big trigger for the Markets. Our Budget expectations are on following lines:–
- Boost to Consumer spending: – The budget should rationalize Direct taxes and reduce Income Tax on Salaried class to boost consumer spending.
- Focus on infrastructure& Power:- The Budget should aim at increasing investments in Infrastructure by Tax Sops and creation of Investment vehicles giving the Government dual benefit of creating jobs as well as boosting economy. Separate investment vehicles may be created to help cash starved infrastructure developers raise long term capital at competitive rates.
Positive & Proactive Time Frame for long pending issues i.e. Introduction of GST and introduction of new Direct Tax Code is expected to be announced in the Budget.
- Capital Market Boost by rationalizing Taxation on Investments, increasing amount of investment U/S Sec.80C and increasing thrust on Disinvestment.
- Rationalization of Subsidies and an overall containment of Fiscal deficits.
The Budget is expected to aim to give a boost our economy. After budget announcement, the markets may see acceleration on the positive sentiment and it could lead to re rating of our markets. The downside being limited we expect that investments in diversified MF schemes as well as all class of mid & small cap schemes should give handsome returns to the investors.
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Nifty future has broken its crucial supports of 7640 & 7530. The markets may fall further and Nifty may hover between 7300-7450. At these levels, 7300 is a strong support and can be broken only if there is a very strong negative event.
We reiterate that lower levels will offer an attractive investment opportunity for equities. Immediate market movements are based on risk aversion and escalation in tensions in Middle East. Money is moving from risk assets to safety of gold. The hike in Rail fares has increased fears of inflationary trend & interest rates have moved up by 20 basis points in the last one week.
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Nifty ends above 7550, Sensex strong; Sun Pharma, Infy drag the market records all time high volumes today, crossing the previous peak of Rs 5.33 lakh crore. What is unusual about today’s volumes is that for the first time BSE F&O turnover is higher than the NSE’s. In fact F&O turnover on the BSE today accounts for nearly 60 percent of overall turnover.
Who Moved and Why
1) NBCC jumps on receiving Navratna status.
2) Aviation stocks take off on decline in crude oil prices.
3) Jubilant Foodworks jumps after brokerage upgrade.
4) Shreyas Shipping gains after taking delivery of vessel.
5) PSU OMCs jumps as crude declines.
6) Havells India gains on stock split plan.
7) Adani Ports gains after completing acquisition of Dhamra Port.
8) PGCIL gains after board OKs investments.
9) Bajaj Hindusthan jumps after repayment of FCCBs on due date.
Read detail analysis report here:- http://rrfinance.com/Reserch/Pdf/07-July/DMR/24_june_equity_closing_update.pdf
Related Articles:- http://www.business-standard.com/article/news-cm/aviation-stocks-take-off-on-decline-in-crude-oil-prices-114062400403_1.html
The market ended listless trading on a flat note. The Sensex was down 44.45 points at 25201.80. The Nifty ended at 7540.70, down 17.50 points. Banks recovered too with the top lenders like ICICI Bank, HDFC Bank and State Bank of India falling around 0.6 percent. However, heavyweights like Infosys, ITC and HDFC extended gains, rising 1.65 percent, 0.9 percent and 0.6 percent, respectively.
Who Moved and Why
1) ABNL inches up after resuming production at a plant.
2) Man infra construction extends recent gains.
3) Rail stocks in demand on FDI buzz.
4) Maruti Suzuki drops amid volatility.
5) Zee Group shares gain as Taj Television to distribute Zee, Turner channels.
6) Hanung Toys jumps on approval of CDR package.
7) GMR Infra gains after favorable verdict from a tribunal.
8) Unitech recovers after recent slide.
9) Crompton Greaves gains on buzz of putting Mumbai land parcel for sale.
Read detail analysis report here: – http://rrfinance.com/Reserch/Pdf/07-July/DMR/19_june_equity_closing_update.pdf
7700 is a strong resistance for Nifty and a cross above this may take Nifty to near 8000. But Nifty has been unable to cross it till now and has fallen below its immediate support of 7640. If it remains below 7640 next week, it may fall further up to 7450-7300 zone. Below 7450, the momentum of nifty’s uptrend will slow down. At lower levels, 7300 is a strong support and it will be broken only if there is a very strong negative event.
Markets are suddenly faced with Geopolitical uncertainties and long positions have been unwound for the weekend. Monday markets will be crucial to test the above technical view and we therefore advise a wait & watch mode for Monday. For more news and updates visit:- http://www.rrfinance.com/Reserch/ResearchHome.aspx
- Over FY05-09, annual equity inflow from households was 5% of incremental savings. Even if we assume half of if it now (as the incentives for mutual funds no longer exist) it translates into $10 billion of retail equity inflows every year.
- Indian households have sold nearly $8 billion (about Rs 48,000 crore) of equities in the last five years and equity exposure to total household assets is just 2%, which is among the lowest ever. Retail investors have been largely shifting their holding towards physical assets from the financial assets.
- Investments of retail investors in equities have been coming down from Sep ‘12 and in spite the market rising sharply in the last six months there is no rise of retail participation in equities.
- Retail investors are still either redeeming equity mutual funds or are switching to debt at current levels. Reportedly stock brokers are seeing net selling of direct equity holdings by retail investors. The rise in markets despite the above is a clear indication that FIIs, FIs, and large investors are buying at current levels.
- With fall in inflation, real interest rates have turned positive and are expected to remain so in medium to long term. It will lead to higher financial savings by households and more investible funds.
There is a very strong contrarian indicator and it strengthens the view of medium term upward move in the markets. We recommend retail investors to increase their allocation in Equity Mutual Funds (based on their risk profile) for medium to long term appreciation at these levels.
RR Investor Offers great opportunity for Investors in Current Equity Markets, ICICI prudential (A Close Ended Equity Scheme) growth fund-series 1 is a 3 year close ended equity scheme and the portfolio would comprise of 40-60 stocks.
The Scheme aims to provide long term appreciation by:
1- Identifying companies which are likely to see growth in earnings over next 3 years period.
2- Investing across market cap with a bias towards mid and small cap space, banking and infrastructure sector.
3- Being adequately diversified, while not restricting it to benchmark sector weights.
4- Declare commensurate dividends.
For best terms please contact nearest RR Branch Or Visit: – http://rrfinance.com/Mutual%20Fund/Mutual_Fund_Home.aspx