Union budget to decide market course ahead: Experts
The stock market is likely to witness high volatility this week as investors are treading the cautious path ahead of the Union Budget 2013-14, experts say.
Market players said the short-term momentum is clearly negative for the market as market participants are cautious ahead of the Union Budget and are not increasing their positions amid expiry of derivatives next Thursday.The Budget Session of Parliament that began on February 21
would conclude on May 10, 2013.
The Railway Budget for this fiscal would be presented to the Lok Sabha on February 26 and the economic survey would be laid in Parliament on February 27, 2013, followed by the Union Budget on February 28. "The coming week is likely to trade with high volatilityon account of February month derivative expiry and the Union Budget. Thus, we advise traders to trade with strict stop losses," Angel Broking said in a research report.
Volatility is likely to remain high as investors are anxious to see what policies are in the offing. Implementation of Goods and Services Tax and disinvestment target for the ensuing fiscal are some of the key things among many that markets are eyeing on.
"The broad theme in the budget would continue to be
fiscal prudence and effective implementation of government flagship programmes (Sarva Shiksha Abhiyan, JNNURM). The Finance Minister may touch upon issues related to reforms in pension, insurance and GST," Kotak Securities Vice President- Private Client Group Research Sanjeev Zarbade said."Some of the risks for the markets would be rise in crude prices and slowdown
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