Why Emkay Global Advises Indiaâs Equity Investors To Stay Invested
Feb 23 2021, 11:43 AM
February 23 2021, 8:31 AM
February 23 2021, 11:43 AM
Equity investors should stay put even as Indiaâs benchmarks slipped off their peaks touched earlier this month, according to Emkay Globalâs Krishna Kumar Karwa.Investors can rotate their allocations between sectors but must remain invested to see higher gains, the managing director at the research firm told BloombergQuintâs Niraj Shah in an interview. âAt least for the next two-three years, the Indian markets are clearly on the run.â.
Equity investors should stay put even as Indiaâs benchmarks slipped off their peaks touched earlier this month, according to Emkay Globalâs Krishna Kumar Karwa.
The benchmark indices posted their biggest absolute points gain on the budget day as finance minister Nirmala Sitharaman desisted from announcing any Covid tax and unveiled what the market interpreted as a mix of reforms and growth-oriented proposals.
Investor wealth skyrocketed to Rs 6.34 trillion with the Sensex jumping 2315 points.
Market circles are not ruling out the possibility of the 30-share index again hitting the 50000-mark in the coming days.
Although the budget did not contain any measures to lift consumption, experts said investors would now focus on the upcoming monetary policy where the Reserve Bank of India is expected to continue with its accommodative stance.
Read more about Bad bank, no Covid cess: Why Sensex zoomed 1,900 pts post Budget proposals on Business Standard. The optimism despite higher borrowing and a wider fiscal deficit, analysts say, was on account of the positive measures to revive the Covid-19 hit economy
Union Budget 2021: Here s a quick look at the highlights
Finance Minister Nirmala Sitharaman.Premium
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Union Finance Minister Nirmala Sitharaman on Monday presented the Budget 2021-22 that aims to shore up an economy badly-hit by the novel coronavirus pandemic. During her third budget speech in Lok Sabha, Sitharaman said that the government is committed to the welfare of farmers and the Minimum Support Price (MSP) regime has undergone a change.
The economy is projected to contract 7.7% in the current fiscal year, although the government forecasts growth of 11% for the coming fiscal year, after a massive COVID-19 vaccination drive and a rebound in consumer demand and investments.
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Highlights
The 30-share BSE Sensex zoomed 2,314.84 points or 5 per cent to finish at 48,600.61.
The broader NSE Nifty soared 646.60 points or 4.74 per cent to finish at 14,281.20.
Only three index components closed in the red Dr Reddy s, Tech Mahindra and HUL, shedding up to 3.70 per cent.
Markets roared back to life on Monday after six days of deep declines as Finance Minister Nirmala Sitharaman presented an expansionary Union Budget for 2021-22 which sought to pull the economy out of the pandemic-induced slump through increased spending on infrastructure, healthcare and farm sectors without resorting to higher taxation.
The 30-share BSE Sensex zoomed 2,314.84 points or 5 per cent to finish at 48,600.61. This was its second-biggest single day jump in absolute terms and the best day in almost 10 months.