Dalal Street enough reason to press the `buy’ button :Pranab Mukherjee

• tanvi_singh
• July 6, 2009

Will finance minister Pranab Mukherjee give Dalal Street enough reason to press the `buy’ button in Monday’s session, reversing the

selling spree witnessed in the last two Budget-days of the Congress-led UPA government? Precedence’s against it. Budget-day trading pattern of the sensex shows that in three out of the last five Budgets under Manmohan Singh, the index closed lower. The index had closed 1% lower in 2007 and a whopping 4% in 2008, after P Chidambaram presented a populist Budget ahead of the Lok Sabha polls.

This time, while the FM will try to strike the right balance between growth, populist measures and fiscal deficit, investors are looking for something that could give a short-term boost to sentiment and would push the market higher, brokers and dealers said.

The expectations from the broking community, however, is mixed. We are less optimistic and though we believe the government would announce some stimulus packages for the economy, fiscal deficit constraints would limit the efficacy of such proposals,

While retail investors and speculators, as always, are looking for some short-term sentiment boosters in the budget, institutional players are looking for a statement on the long-term direction in the economic policies of the current government. “The markets are looking to this budget not just as a financial statement, but as the first major policy announcement that will set the economic agenda for the next five years from the government,
Brokers and analysts feel that the finance minister will have to garner enough resources to speed up infrastructure spending, but that could shoot up the deficits.
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• Last Modified: July 6, 2009
• Filed Under: Latest News, MARKETS, NATION, WORLD