Macquarie feels capital goods stocks are under owned and are best suited to play the India story, and that a pullback in the market would be a good thing
The News International Team
Expectations from Arun Jaitley’s first full year Budget are running high ‘incremental’ Budget may not enthuse the market, feels brokerage house Macquarie.
“Then again, it (Union Budget) won’t be a radical one either, in our view. The market had run ahead of fundamentals; so a slight pull back would help cool things off,” the brokerage said in its note to clients.
Macquarie feels capital goods stocks are under owned and are best suited to play the India story.
Equity benchmarks slid on Thursday after the Railway Budget fell short of market expectations.
“Market was spooked by lack of passenger tariff hike and took it as a populist move, an after-reaction to the Delhi poll results. However, there is merit in the Minister’s rationale – why should customers pay more for poor quality service, especially when oil prices are down sharply?,” the Macquarie note said.
According to the brokerage, the five year capex plan of Rs 8.5 lakh crore augurs well for the economy.