Market Watch: 3 themes that look attractive after the Budget announcement | The Economic Times Markets Podcast

Market Watch: 3 themes that look attractive after the Budget announcement | The Economic Times Markets Podcast

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Nikhil Agarwal and here are the top headlines at this hour.

Sensex posts biggest Budget Day gain
Govt pegs FY21 fiscal deficit at 9.5% of GDP
LIC IPO slated for FY22
Govt to privatise two PSBs and insurance firms
Direct taxes left unchanged in Budget

Let us take a quick glance at what happened on the Dalal Street today.

A 5 per cent surge in a single day! That’s like a Dream Budget for Dalal Street.

The biggest Budget Day rally for stocks on Monday came as the FM Nirmala Sitharaman ticked most boxes Dalal Street longed for. And that included her announcements on boosting infra spending, increasing FDI limit in insurance sector, unveiling of scrappage policy for auto sector and, tax exemption for housing, among others.

What made investors even happier was no hike in any of the equity-linked taxes. No introduction of Covid cess and announcement of bad bank also cheered investors.

Sensex jumped 2,315 points for the day. Nifty50 topped 14,200. Banking stocks such as IndusInd Bank, ICICI Bank and SBI rallied 10-15 per cent. L&T and HDFC added 8 per cent each.

In the broader market, every two stocks rose for the one that declined.

We caught up with Andrew Holland, CEO, Avendus Capital, to understand his views on the market.

Welcome to the show, Mr Holland

1) On a scale of 0-10, how would you rate today’s Budget and why?

2) Name the three biggest themes emerging post Budget announcements?

3) Do you think the lower divestment target of Rs 1.75 lakh crore is reasonable? What could be on the government’s priority list in the initial months?

4) Market did not react much to higher-than-expected 6.8 per cent fiscal deficit target. Why?

5) Are you comfortable with market valuations? Do you think earnings will walk the talk?

Asian markets settled up to 3 per cent higher. European markets were trading in the black in the first few hours of trade. US stock futures were hinting at a strong start for US equities later in the day.

That’s all for now. Do check out for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!

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