Shall We Be Greedy or Fearful After This Budget?

Tue, 1 Mar Pre-Open

   Previous Close   

   09:30 am   

   11:30 am   

   01:30 pm   

   Closing   

Finance Minister Arun Jaitley announced the Union Budget for FY 2016-17 yesterday. The budget is basically a statement of accounts covering the government's spend for the 12 months starting April 1st and sources for the same (taxes and borrowings). As in every budget, there will be some sectors that will be hurt by higher taxes and some that will be rewarded by lower taxes and some incentives. There will be something positive for the poor or the rich - and something not so good.

However, going by the trends, what one can surely count on is market volatility. This is common to every budget announcement.

However, for investors it all boils down to one important question. Should there be a marked change in the way an investor should go about investing depending on the budget?

Well, we don't really think so. You see, making macroeconomic projections and getting the big picture right is one thing. However, to really translate them into profitable stock picking decisions is a different ball game altogether. One shall note that macroeconomic events are barely a blip in the long term intrinsic value of stocks. As Buffett has said, "The cemetery for seers has a huge section set aside for macro forecasters. We have in fact made few macro forecasts at Berkshire, and we have seldom seen others make them with sustained success."

But this is not understood by those who often over-reacts to such events. Even though the budgets are an annual exercise - which can be reversed next year or in later years - such people tend to spend a fair amount of time on the budget and its impact. And they also base their investment decisions on the same. This was clearly depicted in the market movements this month. The Sensex witnessed steepest pre-budget correction this Budget month in 7 years.

We believe it is fear at this time that can turn risk-reward equation in our favour, making stocks an attractive long term proposition. As a matter of fact, the way our investment process across most of our services works is that we would be happy if the markets react negatively to the budget. For then our chances of finding bargains get a boost given how expensive most of the stocks have become. No wonder then, that the Stock Select team has revealed to the subscribers not one, not two but four blue chip stocks that look attractive amidst this market correction. To know more about these stocks, click here...

As far as the research team at Equitymaster is concerned, no single economic event, not even a path breaking Union Budget can be the reason for making dramatic changes to our investing style. We have never believed in the concept of 'budget investing' and so we continue to re-iterate our stance of investing in good quality companies that have solid businesses and are available at reasonable valuations that can add to the long term wealth of shareholders.

We have shared key takeaways from the budget here. It covers the key announcements made by Finance Minister Arun Jaitley and its impact on the Indian economy. Be sure you don't miss it! Click here to sign up for your free subscription...

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

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers