Ambareesh Baliga, Vice President, Karvy Stock Broking talks to Puneet Wadhwa on markets post Budget, sector specific options and good bets among the mid-cap space.
Do you think that the post-Budget rally may be in the last leg?
We feel that the post-Budget move was a relief rally and not a fresh bull run. The caution and pessimism in the pre-Budget season seemed unfounded and the market gave a sigh of relief. The rally got compounded due to short covering and buying by FIIs who were sitting on the sidelines.
Did the Budget have ingredients to give a big boost for continued upward movement?
We don’t think so. The Economic Survey did reveal that infrastructure spend that includes roads as well as power sector haven’t met targets. The GDP data announced post-Budget did not enthuse.
The inflation figures are still a concern and would continue to be so for the next few months. With the good news, or rather lack of bad news, digested, the best possible scenario would be that of being in a limbo and that’s exactly where we are now.
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