‘Safe Budget’; no announcement on subsidies disappointing

Ritesh Jain
Tata Asset Management

“An overall ‘safe budget’ from a government which has been in power for around 45 days. Major disappointment by not treading into the much anticipated subsidies zone.

However, attention to some micro details was positive. Stance on fiscal deficit to be maintained at 4.1% looks daunting – pressure will be on curbing expenditure as Rs.15000cr lower net tax revenue. Clearly a thrust towards infra funding with relaxation on raising long term bonds.

Another major disappointment was no major clarity on PSB consolidation and recapitalization. Only a passing reference is all that we got on consolidation and no hike in budgetary allocation to bank capitalization.

Overall, this government wants to vacate the space for industry to manage itself – minimal government could be expected in the next 5 years with maximum governance.

We believe it lays a strong foundation for regaining growth traction over next 3 years and presents an opportunity for equity investments for 3 year holding period especially in themes laid down by government in the budget.

We expect a softening trend in interest rates and inflation over 18M to 2Y period and as such debt mutual funds present a good investment opportunity at this stage with a 3 year view notwithstanding the changes in taxation of debt mutual funds”.

 

credit: http://www.moneycontrol.com

Mutual Funds plunge as markets slip

Mutual Funds across categories decline as the Equity benchmarks extended losses for the fourth consecutive session on Friday on hefty profit booking after all much-awaited major events of the week got over. Stocks like capital goods, banking & financials, oil & gas and metals, which had seen huge run-up before the Union Budget 2014-15, saw … Continue reading

Public Mutual Fund Price: Latest Fund Price 11-07-2014

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Mutual Funds decline as markets slip on profit booking

Mutual Funds across categories closed with negative bias on Tuesday, as Nifty and its counterpart Sensex saw the biggest fall (in terms of points) in current calendar year. The street pressed the panic button when a sudden rush in profit-booking engulfed the market. In the mayhem that ensued, Sensex lost more than 500 points while broader markets … Continue reading

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Birla Sunlife Midcap Fund: Review

Nature: Equity oriented open ended Inception: October 2002 Assets under Management: Rs 963 crore at the end of March 2014 Fund Manager: Hitesh Zaveri Analysis: >> Birla Sunlife Midcap Fund focuses on mid cap stocks and areas like banks, cement and auto ancillaries were some of the sectors that were present in the top holdings … Continue reading

Mutual Funds advance as markets end higher

Equity Mutual Funds advanced as the Buying in oil & gas and banks stocks in last hour trade helped the equity benchmarks end at record closing highs on Friday ahead of big events next week – NDA government’s Budget for 2014-15 (on July 10) and April-June quarter earnings starting off with Infosys (on July 11). … Continue reading