|Market This Week
||Last week the finance minister delivered a balanced budget amidst huge volatility and expectations from the markets. Is the budget good for our bull run? The answer is yes! Ample opportunities have been created for both public and private investments. Huge spending is aimed at infrastructure, health care, education, job creation, housing, power etc. The budget aims at lowering subsidies and instead having them allocated and utilized better. There is an effort to take the country away from the subsidy regime. Efforts were made to curb black money and also increase social security by means of increasing deductions on pensions and health insurance. There was a clean road map on GST and with GAAR being delayed and merger of FDI and FII, the FII’s had a lot to cheer for. A 2 % surcharge on corporate tax will create some worry but that would be nullified by the commitment of lowering base corporate tax from 30% to 25% over the next 4 years. The budget may not have met the unrealistic expectations of the market but it has done what was needed long time for this country. It has made the country an investment friendly nation which is required to keep the money rolling. It has made India stand ahead of the BRIC nations. We will see a lot of foreign investments in the following years thus adding the necessary fuel to our bull run every now and then. Execution of the budget will hold the key from here on. Now the support and resistance levels for NIFTY are 8600 and 9000 respectively. Any trigger below or above these levels will trigger the next trend. The more the NIFTY stays in this consolidation range, the healthy it is for the markets in the long term. Our bull rally is intact which will go through its own corrections and consolidations on the way up. All the best!