26 October, 2020

Fits, Then Starts

A realigned portfolio could yet help you survive the market

Fits, Then Starts
OLM Market Pointers
  • Buy good FMCG stocks; growth and earnings expectations on these will now be revised upwards
  • Infrastructure and utility companies serving the rural sector will benefit from the budget
  • Global cues are more important now; expectations are that markets would cool off by September
  • Don’t buy companies looking to raise funds, as debt is likely to get costlier


For all the noise generated about the "exaggerated" response of the stockmarkets to Budget ’09, it’s rather reassuring that they have a very short memory span. One moment is still crystal clear, though: when the Union finance minister spelled out the fiscal deficit, all the pre-budget euphoria drained out like a punctured balloon. Was this reaction justified, particularly when it was clear that most analysts and macro-economic experts had already resigned themselves to the deficit being 6.2 per cent of the GDP as announced in the interim budget?


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