Markets were up today, the sensex up by 84.97 points reaching 28226.61 and the Nifty up by 17.85 points reaching 8734.25 1533 stocks advanced, and 1245 declined. Yesterday on Budget day, sensex made a 486 point rally at 28141.
The markets were excited by the good union budget presented by Finance Minister Arun Jaitley. The Budget was good with a decline of Current A/c Deficit by 1% of GDP last year to 0.3% of GDP in the first half of 2016-2017. It is a developmental budget by outlay to agriculture, infrastructure and Industry. Real Estate will do well due to demonetisation affordable housing is inexpensive. So, Real Estate stocks are up. Infrastructure stocks like L&T also have done well, due to increased emphasis on Infrastructure. The FMCG sector will also do well due to emphasis on rural India, which consumes lot of fmcg. Marico has given good results in line with expectations so these stocks will do well. Marico is a leading fmcg. Banking will do well with a huge demand for money, due to lot of economic activity taking place. But markets are overheated now, it is better to get rid of 75% of your portfolio and keep 25%.
Happy Trading & Investing.
