The Budget What do you do now ?

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ones and the volatility experienced in the previous year was amongst the highest ever.

This clearly indicates the high risk the market runs at the moment. With returns not expected to be as handsome and volatility likely to remain the order of the day, trading with a 15% short term gains tax would be extremely risky.

Then again, the stock exchanges have come under the purview of service tax and this will have to be accounted for. Though early days at the moment, it is likely that the exchanges will pass these down to their members and they, in turn, to investors.

While trading itself is a valid business practice, financial planners cry hoarse over the need to keep it separate from wealth management. The two are different and, when diffused, cause a lot of personal turmoil and anguish. If you are still bitten by the trading bug, keep some amount aside for trading purposes.

“An amount you would be okay with in losing, if you lost it all,” says Sanjay Gupta, a financial planner and chartered accountant.

Stick to knitting

One of the cues that one can take from the Union Budget is that the government, while playing to the gallery, is also keen to spur growth in the economy. This can be witnessed by stronger allocation to the infrastructure industries and a bold decision to stick to their knitting and keep a focus on maintaining strong revenue growth.

It would indeed have been tempting for the finance minister to extend his performance and also please the corporates by lowering the tax there, and he refrained.

Instead, moves to impact consumption -- by lowering excise duties and thereby stimulating demand and also the economy along with it -- were taken. The increasing of spending power with individuals is expected to ensure this.

Therefore, investment strategies will be based on these parameters. Companies in the infrastructure and related industries are likely to be strong gainers this year. And so will be those which deliver on the consumer spending story. These stocks are expected to dominate portfolio share. The banking sector too could witness strong traction in the current year.