The month started well for the stock market, it ended positively, due to a good budget. The income tax limits were raised to, inr 500000/,per annum. and if you have an income of inr6.5 lakh p.a. you will still not pay any tax due to the investments allowed in Provident fund, Mutual Funds and Insurance.
Farmers will get a direct transfer of INR 6000/ a year, leading to more money in the hands of people. The shares of FMCG like Dabur, Marico will do well as they are consumed by many people, the sales of FMCG products, will increase as the rural population will be an additional sales for these companies. Banking shares like mid sized City Union Bank, will do well as lot of accounts will be opened with Banks, due to the cash availability. It is quoting around INR 189 and inr 191, we are following City union Bank since 2010 which was quoting around inr 45/, overall share market and mutual funds will do well, with the increased money in peoples hand and less black money in circulation.
