<div>Measures such as 8,000 kms of roads, development of airports and ports, ten-year tax holiday benefits to power companies, renewed focus on infrastructure development, fiscal consolidation, decision to implement GST and FDI in defence and insurance, among other smaller proposals, have gone well with market participants.<br /><br /><br />Most brokers and equity analysts, whom BW consulted, hoped market buoyancy to continue, while a good number of them expected market (Sensex) to range between 27000 and 30000 levels over the new few months.<br /><br /><br />“The budget has met our expectations in terms of a long term agenda. Fiscal consolidation is the key focus with the Finance Minister giving a target of a 3 per cent fiscal deficit by FY17. We continue to remain bullish on the markets and maintain our index target of 27,000 by year-end though near term we could see some consolidation due to the monsoons. We recommend buying every dip,” said a Bank of America Merrill Lynch report authored by research head Jyotivardhan Jaipuria and economist Indranil Sengupta.<br /><br /><br /><img width="200" vspace="3" hspace="3" height="300" align="right" alt="" src="/image/image_gallery?uuid=bb2a9f6a-b795-402f-9aff-84795bc7f67c&groupId=36166&t=1405055463349" />Markets sent out conflicting signals in mid-noon trade as benchmark index – the 30-share Sensex – moved in a wide range of over 800 points. The index touched day’s low of 25,117 and day’s high of 25,920 before ending the day at 25,372 points, down 72 points or 0.2 per cent.<br /><br /><br />“The first voice by the new government clearly indicates growth and fiscal consolidation and that tells we are in a bull run for a long time. The new budget is clearly positive in terms of lower individual taxes, positive for many sectors like Infra, Power, Realty and reviewing subsidy,” said Vinod Nair, research head at Geojit BNP Paribas.<br /><br /><br />While the budget has been low on big-bang announcements, it has touched almost all key sectors. The focus of the finance minister, it appears, is to iron out irritants that hinder business and investment decision-making.<br /><br /><br />“If you had to focus on what areas what were focused on the most, infrastructure and taxation were heavily addressed. From an infrastructure perspective, we can expect defense stocks to do well (L&T has appreciated 3% mid-day), real estate stocks to do well (DLF has appreciated 9% so far through the day), and Power stocks to do well (NTPC has risen 2% so far),” said Raghu Kumar, CEO of RKSV Stock Broking.<br /><br /><br />Analysts expect large and mid-cap companies like HUL, ITC, SBI, ICICI Bank, HDFC, LIC Housing Finance, Max India, GVK, IRB Infra, Maruti, IDFC, L&T, Bata, Jubilant Foodworks, Indiabulls Housing, DLF, Godrej Properties and Unitech to perform well over the next few weeks.<br /><br /><br />“Mid-caps will outperform large caps; domestic plays will outperform exporters. Our overweight sectors include autos, cement, banks, industrials and energy,” the BoAML note said.</div>
