Market Outlook (For the coming days)

Hi Friends
Really sorry for not updating the site on a daily basis, as there are lot of queries coming up and in order to answer as many as possible hardly any time is left to update the site daily. However the ones who are intrested in the Delivery Calls should not be worried much about it because it does not require daily postings. Actually this site is meant for Delivery based investors but due to so many emails regarding nifty views and outlook i started updating frequently. I keep on adding the query list in my address book and send them emails together constantly updating about the markets and the open calls. Would request all to mail any queries/feedback or suggestions @ nishantlakkar@gmail.com with the subject "Query/Feeback/Suggestion" which ever is applicable
Nyways,
Markets have gained on 2 days after a week long consolidation between 4900 and 5200.
I personally believe that one should hold on to their current positions and dont take any additional position till budget.
Although I expect the Education, health, and IT sector to get special considerations in this budget.
I would like to highlight some of the important points from my reports to all the free access members here in this website regarding the expectations from budget.

• Reduction in direct tax rates for individuals
• Some reduction or elimination of dividend distribution tax
• Rationalization of excise duties, including the auto sector
• Rationalization of exemptions for corporates
• Lower customs duties for commodities to contain inflation and
rationalization of inconsistencies
• Enhanced credit availability for the agriculture sector
• Some relief in FBT
• A sharp increase in the outlays for social sectors like health and education
ØBalancing act on growth v/s social commitments to continue
ØSince this budget is the last full budget (next budget most likely to be vote-onaccount
budget) of UPA, the FM may be tilted towards social commitments
ØThe tug of war between inflation and growth related measures will also
continue
ØWe expect higher allocations to education, unemployment, healthcare to
support the social commitments
ØInfrastructure will again turn out to be the key thrust area and we expect
further measures to be announced to boost investment in this area
ØBudget allocation to agriculture related items may get intensified as
agriculture is a weak component to the GDP. An increase in agri supply also
eases out inflation
ØFiscal deficit could be projected at sub 3% level
ØGovt’s commitment towards achieving the 9% GDP rate will continue
ØFurther cut in certain custom duties in commodity sectors like metals,
petrochem and chemicals is expected as this will ease out the supply side
constraints on one hand and reduce the pressure on inflation on the other
ØA cut in direct tax rates expected as the first 10 months’ direct tax
collections have been 40% above the target
ØWe expect a likely cut in corporate tax rate to 30%. This is despite the fact
that we expect a populist budget
ØThe individual threshold limit might get revised upwards or alternatively
there might be an investment based incentive scheme introduced to
channelise savings for investment purposes

These are a part of the report which i prepared for the PMS and other members. I also have a full report on BUDGET from Kotak... If anybody wants that please email your request.

Happy Investing
Investomaniac
JAIDADIKI