*Mr Dilip Bhat, Joint Managing Director, Prabhudas Lilladher *
* *
The Stock markets have pronounced the judgment very unambiguously with a 6%
fall on worries of consequences of huge fiscal deficits and also the
perception that the status quo budget lacks the vision to take the economy
further. Markets may slip down to around 3800 - 3900 over the next 1 – 2
months.
However there are a lot of positives which would kick in at those levels.
The fiscal deficit of 7% would itself mean huge stimulus spending which can
push for a possible 8 – 9% GDP growth which on a top down basis will make
India singularly attractive to invest. The Government borrowing program and
consequent impact on interest rates and liquidity should in our opinion get
diluted by expected strong inflow of FII, ECB money and some innovative
structures.
All in all while Nifty could retreat to 3800 / 3900 over next 1-2 months for
many more reasons and not just the budget, we could see strong moves from
those levels. So short term investors (2-3 months) should brace themselves
for some further correction, while the same could provide an opportunity for
long term investors to accumulate
END.
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For any further queries, you may contact him on* **9820038100. *
**
*His picture is also attached. *
Request you to kindly carry.
* *
* *
Thanking you & best regards,
Varsha Talreja
Paradigm Shift PR
9821195211
022 22813797 / 98
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