The biggest fall of the year was seen in the domestic stock market due to the profit-booking of investors disappointed by the budget. On the last day of the week i.e. Friday, the two main benchmark index Sensex-Nifty closed at more than 2 percent fall. The BSE 30-share index Sensex fell by 840 points to close at 35066 levels. On the other hand, NSE's 50-share index, Nifty, fell 256 points to close at 10760 levels. Experts believe that the market will be able to see the next few days and profits. But small investors have a great opportunity to buy good shares in this fall.
Atul Suri, CEO of Marathon Trends said that the budget is more distressing than the media and the broker. Forget the budget, the market will now run on global trends. Now the most important chart is the US bond yield. Today the weakness seems to be seen in the Indian markets due to the impact of US bonded yield. The market has run away anyway, now it is expected to fall further. There will be more weakness in PSU banks.
According to Sameer Arora of Haily Capital, the long-term capital gains tax could have some impact on the decline of the market. But the reason for the decline is that for the last few years, many mid-caps and small-caps stocks had run away due to a higher valuation, now their air is getting out. However, Sameer Arora believes that bringing long-term capital gains tax is not correct.
According to Riddham Desai, Morgan Stanley India MD, this kind of fluctuation in the market will be seen for next 3-4 months. You have to estimate how the American market is going. This will give you the Nifty stand.
Investors have good chances of putting money in the insurance sector, according to Atul Suri. In addition, there will be good investment opportunities in commodity and IT shares. Besides, due to the market emotion, some shares have fallen despite good results. Such stocks will also get better growth.
According to the brokerage house CLSA, it is possible to benefit life insurance companies, ITC, L & T, NCC and Mahindra and Mahindra from the budget proposals. There is a possibility of increasing pressure on NBFCs as bond yield increases. Increasing the MSP of crops is good news for Mahindra & Mahindra. HDFC and CG Consumer may benefit from the housing scheme. CLSA advised making purchases in L & T, Harmony Engineering, Adani Ports and IRB Infra.