Market Analyst Saumil Trivedi expects Finance Minister Arun Jaitley to announce some bold measures in the budget which could propel the Nifty to 9000 levels in a month.
“He [Arun Jaitley] is known for thinking out of the box, he is leading from the front and he has to prove himself and noises are coming out that there will be bold decisions,” said Mr. Trivedi.
“Any of these bold decisions could catch the imagination of the investor class. The market is starved of such fundamental changes like it was in 1992 when Manmohan Singh presented the budget of liberalization. Then in one month that market gave 50 per cent, with Sensex rising to 4,500 from 3,000,” Mr. Trivedi added.
Markets have already rallied to new all-time highs ahead of the budget to be presented on July 10. Finance Minister Arun Jaitley’s warning against “mindless populism” propelled Indian stocks to record highs this week, as investors bet that his maiden budget next week will stabilise the wobbly public finances. Prime Minister Narendra Modi had also earlier warned that the turnaround of the economy involve some “bitter medicine”.
Mr Trivedi also said some market indicators like volumes and fund inflows point to a big rally after the budget. “The movement of the past three days, the kind of money flow that has started coming…total surprise could happen in the budget just like the election results that blew everybody of their feet.”
“The floor for the market is 7,600 and you might see some levels which you have not thinking in a month’s time, 9000-plus levels,” Mr Trivedi said.