The Hindu Business Line : Marketmen get no clear signal from Economic Survey

Kolkata, July 2 Analysts, strategists and economists felt on Thursday that the Economic Survey failed to provide clear clues for the market, but did not let the optimism flag. Increasing administered retail petroleum product prices on Wednesday also did not seem to excite market players much.

The benchmark index on Thursday could not avoid gyration and finished mildly in the green suggesting openness on the part of investors before the Budget.

According to Mr Amitabh Chakraborty of Religare, the objectives of the Survey are laudable, but implementation will be key. Pointing out that the Survey has far too many listed wishes, he said that it would be a challenge to realise many proposals. “But some of these are likely to be initiated in the forthcoming budget. The Government is now serious about going ahead with reforms and increase in petrol/diesel retail prices clearly show many such measures could be expected outside the Budget.”

Many felt that the Survey, at least, should help pare down expectations from the Budget, and motivate the market to see the big picture

A recent investor survey by ICICI Securities, conducted to comprehend expectations from the Budget, found out prevalence of a “muted” view. Low expectations notwithstanding, the brokerage expected that the market would be range-bound in the near term.

According to Mr Arun Kejriwal of KRIS, there was nothing (in the Survey) surprising for the market. “In fact, it could not make out which direction to adopt”.

Back to square one

Mr Gul Tekchandani, a market strategist, said that it sounded like a must-do list for a Government. “There were good sound bytes regarding reducing subsidy and divestment. Wednesday’s petro-product price hike was the first positive signal from the Government for the market this week. But if taxes go up, it would be back to square one.”

According to Mr Surabh Mukherjea of Noble, the market had factored in an economic recovery as a done deal. “But the Survey suggests recovery will take time to happen.”

Mr U.R. Bhatt of Dalton Capital Advisors said, like all governments in the past 60-odd years, this one is not short on intentions. “It is to be seen if the idioms used in the Survey are translated into action. If that happens then this Government would mark a fortunate departure from the tradition.”

More Stories on : Stock Markets | Economic Survey

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
MFs’ asset base grows at slower pace in June

INM cuts stake in Jagran Prakashan

Snag in BSE circuit filter pinches retail traders

Max India to issue equity shares

Marketmen get no clear signal from Economic Survey

Market unimpressed

ONGC hogs limelight, adds 7 lakh shares

‘The key is to stimulate investment and demand in India’

Day Trading Guide

Tata Motors (Rs 294.3): Sell

IPO scam: Jhaveri settles case with SEBI