We believe the government will work towards reducing the fiscal deficit, which is a key factor for any government. With the need to increase consumption demand, there will be a relook at the personal and corporate taxation rates.
A focus on kicking the capex cycle which is the big stimulus required for sustained economic growth. Inverted tax laws will hopefully find correction to realize the “Make in India” plan of the government.
Land reforms is also one of the key factor on which the government is highly active to amend it to help major sectors like Defence, Industrial corridors, Rural Infrastructure development and Affordable housing.
At 8900 – 9000 certainly one cannot act on short term view as the markets are going to remain volatile on the back of internal or external news flow but in the next 12 to 18 months of time we are expecting steady and positive indications. Down side is limited to 8000 as per Nifty and 27000 as per Sensex. On the higher side, we are expecting 25% to 30% returns in next 12 to 18 months of time.
By Kamlesh Rao, CEO, Kotak Securities