Today , markets were up by 267 points in bse at 35645, and the Nifty was up 70 points at 10750. The most important news item is the Government has increased the minimum support price for food grains, so the income will raise of the farmers. If, farmers income will rise it will have a cascading effect on all income of the population ie the rural population. This in turn will lead to purchasing power of the rural people, which will in turn lead to increasing income levels of companies. So, it is over all good for the markets.
But markets are instinctive in nature, which will lead to sporadic rise and fall in prices. With the Institutional buying being reduced generally, markets will be down. This increase in minimum support price will be good for markets in long term. FMCG stocks, are good to watch out like Marico, Dabur, Lever , these stocks will be defensive in nature. Titan might be a good buy, as it has a lot of gold jewellery in its portfolio. Anyway, it is better to be cautious now while you buy stocks.
