sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Budget Extravaganza »
 How Union Budget 2018 impacts individual taxpayers
  How Budget 2018 will be different due to GST
 This is how Budget 2018 announcements may help you save tax
 Here's why the government advanced the Budget date
 Will Budget 2018 Reduce Your Income Tax? 10 Expectations
 How Budget 2018 will be different due to GST
 Will Budget 2018 cut tax on switch from dividend to growth option in mutual funds?
 Startup eco-system looks forward to the budget for addressing tax dilemma
 High time to prioritise non-tax revenue in the Budget
 Govt may abolish dividend distribution tax in budget
 Budget making in the GST era: paradigm shift

Traders expect no Budget-Day jitters
February, 26th 2010

Stock market traders are accustomed to wild swings in share prices on the day of the Union Budget. That is mainly due to the huge build-up of speculative positions usually purchases in the run-up to the event. But this time, investors and traders may be spared some of the gut-wrenching fluctuations as traders have kept their outstanding commitments to the minimum, after having been repeatedly caught on the wrong foot over the past few months.

There is no heavy built-up in the market this time ahead of the big event, says Ravi Sharma, derivatives analyst, Prabhudas Lilladher. Unlike earlier years, volatility has been going down for the past few weeks. We are not expecting any major movement in the major indices apart from the initial volatility, he said.

 Mr Sharma sees 4800 as a strong support for the Nifty index and 4950 as the immediate resistance level. In the past 21 budgets since 1991, the market has shown a mixed trend on Budget day. However, they have seen a steep fall in the past three years on the Budget day.

There could be some initial volatility this time too, but investors need not take their decisions based on market movement on a given day.

The best strategy is to hold on to your investments if you think the company is fundamentally strong, Mr Sharma adds. Brokers also say that the significance of the Budget has been waning as far as its impact on the market is concerned. That is because many important decisions are now being announced outside the Budget.

The concern is more to do with the increasing volatility in the global markets and lack of clear direction. Investors should not panic with the initial swings, says head of research of a Mumbai-based brokerage. However, the numbers may vary if one were to take a sector or stock-specific approach as segments like fertilisers and auto are impacted significantly by Budget proposals. Long-term investors should not churn their portfolio merely on the basis of any reaction of the markets based on the Budget, he adds.

Experts say that there are no major pressures on the government to appease any section of the voters as there is some time to go for the elections. They also say that the expectations of market participants from the Budget are low, and they are more keen to see how the government will manage its fiscal deficit.

According to analysts, the government is expected to push through financial reforms, including a roadmap for goods and services tax, apart from bridging the fiscal deficit. Analysts believe that the widening deficit may force the government to withdraw sectoral sops and stimulus packages.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions