Budget 2017: Fisc discipline push good, but no catalyst for earnings

Deutsche On his Budget takeaways, Abhay Laijawala, Head of India Research at Deutsche Equities says the stand out has been the Finance Minister’s ability to balance all compulsions and sticking to path of fiscal consolidation for the third consecutive time. International investors as well as global rating agencies will view this credibly, he says. |  Abhay Laijawala (more) Head of India Research, Deutsche Equities | Capital Expertise: Equity - Fundamental While the market has seen a rather surprising up move in the last couple of weeks, Abhay Laijawala, Head of India Research at Deutsche Equities, believes there is, unfortunately, no catalyst which suggests earnings growth expectations have improved.

 On his Budget takeaways, Laijawala says the stand-out has been the Finance Minister’s ability to balance all compulsions and sticking to path of fiscal consolidation for the third consecutive time. He believes international investors as well as global rating agencies will appreciate this. Among sectoral bets, he expects banking to do well in the run-up to credit policy. With the thrust on fiscal consolidation and no forewarning from the US Federal Reserve Wednesday on a rate increase, an interest rate cut by the RBI is firmly back on the table, he notes. Wholesale-funded banks, select consumer discretionary and NBFCs are likely to do well, he says, adding, the house also has a contrarian view on IT and expects there is chance of a constant currency revenue growth of the sector will be back on track soon

Read more for HNI Stock Tips - http://bit.ly/ace_services