The budget is expected to have a rural focus with over

infra to hog limelight in Budget 2018

As the nation and its political parties gear up for eight state elections this year, and subsequently cheap Canada Goose prepare for the general elections, the upcoming Budget 2018 assumes a high significance. Finance Minister Arun Jaitley’s fifth Budget is expected to be rural focussed with over spending on uk canada goose rural infra, agriculture and job schemes, Vinod Nair, Head Of Research at Geojit Financial Services, said in an exclusive interview with Moneycontrol’s Kshitij Anand.

canada goose outlet online uk Q) The year 2018 started on a bullish note after a blockbuster 2017. The Nifty is already knocking on the doors of 11,000. Do you think the rally would continue till Budget? canada goose outlet online uk

canada goose outlet los angeles The current rally is a result of strength in global macros, the expectation of strong revival in earnings led by Q3 results and Union Budget wishlists. canada goose outlet los angeles

canada goose stockists uk Q) The macro picture is fast deteriorating at least it is canada goose uk black friday not as attractive as it was back in the year 2016 2017. Do you think the hope based rally could push the index towards record highs? canada goose stockists uk

buy canada goose uk The macro had deteriorated in canada goose black friday sale the calendar year Canada Goose Coats On Sale 2017 due to the impact of demonetisation and implementation of the GoodsandServices Tax (GST). As a result, the risk to fiscal slippage increased leading buy canada goose jacket cheap to hiking in bond yield. buy canada goose uk

canada goose outlet toronto address This is likely to impact in the short to medium term, but GDP is expected to improve from Q3 FY18 onwards. For example, the recent cut in GDP by CSO did not impact the market because it was a conservative forecast while the economy is trending for a QoQ Canada Goose sale growth. canada goose outlet toronto address

canada goose outlet real Earnings growth for Q3 is likely to be in a range of 15 to 20 canada goose uk shop percent on a year on year (YoY) basis which is likely to be extended to FY19. canada goose outlet real

canada goose outlet store uk The market rally in 2018 is based more on reality than hope but the ongoing rally in the market can take a breather before seeing the eventful outcome of canada goose coats Q3 and the Budget. For the full year, we have a moderate outlook for the main indexes, but a positive outlook on the broad market. canada goose outlet store uk

canada goose factory outlet toronto location Q) What are your expectations from Budget from markets points of view? Do you think LTCG could become a reality in Canada Goose Online Budget 2018? canada goose factory outlet toronto location

canada goose outlet online The expectation from this Bbudget may be lesser than what market had over the last 2 3 years. This time the most important expectation is to have a good balance between fiscal and growth. canada goose outlet online

By not getting overwhelmed by the rural segment but to continue with reforms and growth oriented initiatives. Having completed the reform over the indirect taxes, we can expect the government to shift the focus to direct tax.

canada goose kensington parka uk The government had earlier suggested cutting canada goose outlet the corporate tax rate to 25 percent in the Union Budget of 2015 16 and therefore we Canada Goose Jackets can expect canadian goose jacket some initial implementation this time. canada goose kensington parka uk

canada goose outlet store montreal However, given that GST implementation is cheap canada goose uk not completely over, any action on this behalf will depend on the government’s confidence in the fiscal management. canada goose outlet store montreal

There are expectations to cut GST rate in food and non food items but this is unlikely to be addressed in this budget since it has to canada goose coats on sale be processed under the GST Council.

canada goose outlet winnipeg LTCG will be introduced in India Canada Goose online for sure as a reform over direct taxation but whether it will be introduced in the next Budget is a matter of pondering. canada goose outlet winnipeg

Q) Expectations are high from the government about a likely package for the agricultural sectors to boost rural income. What are your expectations from the Budget from agri sector and what stocks are likely to benefit the most?

This is the fourth budget before the upcoming 8 state elections and general elections thereafter. The budget is expected to have a rural focus with over spending on rural infra, agriculture, and job schemes.

canada goose premium outlet The risk is to have overwhelming benefits due to a reduction in poll confidence, primarily on account of difficulties caused by demonetisation and GST. The other risk get generated to fiscal slippage, higher government papers, and interest rates. canada goose premium outlet

The market is very curious to see whether uk canada goose outlet the government will be able to manage the fiscal target of 3.2 percent and 3 percent for 2018 and 2019.

canada goose outlet legit The government’s 10 year yield has risen by 93 bps over the canada goose uk outlet lastsix months to 7.38 percent. Specific measures will be towards remunerative prices on agri, credit benefits, agri infrastructure like irrigation, social security to farmers, reduction in GST and fertilisers. Stocks under our coverage which may benefit are PI Industries and Canada Goose Parka UPL. canada goose outlet legit

canada goose outlet vancouver Q) Do you see bubble valuation in any sector and canada goose store if yes in which sector and why? canada goose outlet vancouver

canada goose outlet edmonton Currently, we feel that valuation for consumer discretionary and consumer durables is trading near its peak. Over the last 2 5 years valuation has expanded from a range of 20x 30x P/E to the historical peak of 40x. canada goose outlet edmonton

canada goose outlet online store This was supported by strong earnings momentum in this sector led by raising urban population, higher per capita income, expanding consumer base and increasing affordability due Canada Goose Outlet to easy finance. canada goose outlet online store

canada goose outlet buffalo Additionally, the valuation has further boosted by the expectation of a shift from informal to the formal segment with the advent of the Goods and Services Tax (GST) in 2017. canada goose outlet buffalo

Q) Valuations of small and midcap stocks are already trading at a hefty premium. Do you see the party continuing canada goose clearance in this space and what is the kind of strategy which investors should adopt?

canada goose outlet official The valuation of small and midcap buy canada goose jacket are high but may canada goose factory sale not be at a high premium. Actually, the whole market is trading at a high valuation. The Nifty50 is currently valued at P/E of 21 times on a one year forward basis while Nifty Midcap 100 and Smallcap 100 is valued at 22 23 times. canada goose outlet official

Valuation has expanded as market risk reduced, economic confidence increased, a turnaround in businesses and higher liquidity and earnings growth.

The broad trend in the market will be maintained as the risk appetite in maintained. In the very short term it will be fair to turn cautious and shift to defensive stocks and sectors like IT, Pharma, Telecom, FMCG and export oriented companies as a safer best.

canada goose coats uk Q) Brent has already touched $70/bbl. What could be the repercussion for the market as well as for the economy canada goose coats uk.


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