IT stocks continue to be under pressure. Nilesh Shah of Envision feels that downside in these stocks is limited because they are now available to 20-25 year low in terms of price earning multiples. It may not be a bad idea for the big IT companies to buyback their shares as they have loads of liquidity and also getting the shares cheap
The market has crawled higher at open. The Sensex is up 48 points while the Nifty is up 20. Equities have had a sterling run recently and Budgets sometimes tend to be inflection points for the market. (Last year, the Nifty bottomed out at 6,800 ON the Budget day.)
Will it be a similar day today -- and could the market turn lower? Not to mention, global markets too seem to be tiring out as the Donald Trump honeymoon ends a bit pre-maturely.
The most important things to watch out for in the Budget are: fiscal deficit target, stimulus policies (especially those aimed at rural India) to counter the slowdown impact of demonetisation, decisions on income and corporate tax rates and any announcements on promoting digital payments or universal basic income.
The rupee has opened at 67.65 per dollar ; rising 22 paise.
The pre-market setup is pointing to a firm start for the markets. Historically, the markets tend to start flat to higher on Budget days, and after witnessing some volatility, ends usually lower.