Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Fiscal roadmap cheers markets
Tue, 1 Mar Closing

After a very lukewarm response to the Union Budget yesterday, the Indian markets seem to have celebrated the economy’s fiscal tightening in today’s session. While auto stocks took the cake, heavyweights across sectors seem to have enticed investors in today’s session. Right from the start of the session, the benchmark indices went on to add to their gains and ended firmly in the positive. While the BSE-Sensex closed higher by around 623 points (up 3.5%), the NSE-Nifty closed higher by around 189 points (up 3.5%). Both the BSE Small cap and the BSE Midcap indices closed firm (up 2.3% and 3.2% respectively).

As regards global markets, Asian indices closed positive today while European indices have also opened on a positive note. The rupee was trading at Rs 44.92 to the dollar at the time of writing.

The deputy chairman of the Planning Commission Mr. Montek Singh Ahluwalia, today assured that the Union Budget's target to slash the economy’s fiscal deficit to 4.6% of GDP is achievable. While many economists have derided this goal as being too optimistic, Mr Ahluwalia has contended that the same is achievable even if crude oil price averages at US$ 100 a barrel for the year. With such assurance, the fiscal roadmap for India seems to be on a firmer footing and makes a better story for the economy’s robust long term prospects.

Meanwhile, SBI, the country's largest lender, received subscriptions for Rs 85.8 bn for a bond sale, or more than 8.5 times the minimum on offer. The state-run bank aimed to raise Rs 10 bn, with a greenshoe option for an equal amount. However, the bank said in its prospectus it had the option to retain up to Rs 100 bn if subscriptions from retail investors were more. The bank, which along with its associates controls about a quarter of all loans in India, is raising the money to meet its loan growth. Bank loans recoded growth of 23.9% until February 2011 marginally exceeding the RBI’s target for the fiscal.

The budget proposals were also positive for the country’s largest power projects financer Power Finance Corporation (PFC). The company is reportedly targeting 26% YoY growth in disbursement for the current fiscal. It is also planning to set up a 100% subsidiary for renewable projects. The company plans to raise up to Rs 53 bn through the ongoing infrastructure bonds public issue for the purpose of funding its loan growth.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Fiscal roadmap cheers markets". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.