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Prebudget 2020

The Budget will be announced on February 1, 2020 by Finance Minister Nirmala Sitharaman. The markets over the year witnessed the effects of a slowing economy where GDP has fallen below 5% and fiscal deficit has widened above estimates to around 3.8%, a steep slippage from the Budgeted target of 3.3%.Growth slowdown has hit the government's finances hard with the fiscal ending with a likely revenue shortfall of Rs 2 lakh crore. Here's a quick look at how different numbers stack up: GDP growth: 5% (Lowest in 11 years) Pvt Consumption: 5.8% (Lowest in 7 years) Investments: 1% (Slowest in 17 years) Manufacturing: 2% (Lowest in 15 years) Agriculture: 2.8% (Lowest in 4 years) This year's Budget will have an unenviable task to balance the expectations with reality. There is a lot of hopes riding for a revival and a boost to the economy from the current slowdown, leading to a current cheer in the market.The current need of the hour is to spur consumption, accelerate the in...
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Galloping Market & Struggling Economy

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“ A rising tide tends to lift all boats” however the current market is not following it. At present, the bellwether market is hitting new highs led by the movement of few stocks. The performance of the indices from 1 Jan 2019 to 31 Dec 2019: Index 01-01-19 31-12-19 Return Nifty 10910 12168 11.53% Nifty Midcap 100 17893.5 17102 -4.4% Nifty Smallcap 6476 5834 -10% From the data mentioned above, we can understand that the current rally is mainly led by the participation of large cap stocks, whereas nifty midcap and smallcap continue to bleed. 2019 has been a good year for Indian capital markets driven by both domestic and foreign institutional (FII) inflows. Foreign investors poured more than Rs 1 lakh crore into Indian equities in 2019, making it the best year for overseas investments in India since 2013. While their net investmen...
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