Stock Market Budget 2021 Expectations: What are the market’s expectations from the budget
Union Budget 2021-22 Expectations for Stock Market: Talking about the year 2020, even though there were ups and downs throughout the year, by the end of the year, the stock market has given 16 per cent returns to the investors. The market has also started in the new year with positive notes. Experts are assuming that the market rally will continue in the year 2021 as well. In this, the budget 2021 to be presented on February 1 will play a big role. The budget is presented at a time when the government’s focus is on giving new direction to the economy. Budget can play a big role in it. Experts are assuming that where the government can make a big announcement about disinvestment in the budget. At the same time, Relief Fund can also be found for sectors struggling with COVID 19. The government is expected to remain the focus in the budget on the infra sector as well.
The eyes of the market will be on budget
Ajit Mishra, VP Research, Religare Broking, says that the stock market and investors are going to have a special eye on the budget. First of all, there is a disinvestment plan of the government. Disinvestment plan is a priority of the government. Coming about this, the government can make big announcements to meet the target. At the same time, a relief package can also be available for sectors struggling with COVID 19. It includes aviation, travel and tourism, hotel industry and multiplexes.
On the other hand, in order to accelerate the economy, the budget can also announce increase in spending in the rural sector, infrastructure and agriculture sector. The banking sector, which has long been an underperformer, may be a priority for the government. Currently, all these markets will get support. He says that among the sectors which are expected to be the fastest in 2021, banking and telecom sectors are the main ones.
He says that corporate budget is going to be the major factor in the market before the budget. Last year, the central bank RBI took adequate liquidity measures in the market, which benefited. This trend of RBI can continue in 2021 also. At the same time, the fiscal position on the domestic front is getting better, the position of NPA is also improving, which has increased sentiment.
Sensex can touch 51500 level
Vineet Bolinjkar, head of research, Ventura Securities, believes that in 2021, the Sensex may touch 51500 levels. At the same time, the Nifty can also touch the level of 15,100. He says that there is no lack of liquidity in the market and the business of companies has improved better than expected. This will give support to the market.
According to Hemant Kanawala, equity head, Kotak Mahindra Life Insurance, the market fluctuated due to COVID in the year 2020 but 2021 will be a year of vaccination, reopening and economic recovery for the market. However, experts believe that even some correction in the market cannot be ruled out.
Vinod Nair, head of research, Geojit Financial Services, says that the recovery in the economy will pick up in 2021, giving the market a boost. There will also be support for corporate earnings. Jaideep Hansraj, MD and CEO of Kotak Securities, says CY21 and FY22 are going to be better for the stock market due to strong recovery in economy and earnings.