The founder & CEO of SAMCO Securities, StockNote and the Indian Trading League Company, Modi believes that price is the most important factor in investing. He is credited with developing the AIRM (TM), an approach to screening stocks and businesses in a scientific manner. His role model is Warren Buffett.

How Sitharaman's Budget can impact Sensex stocks







Autoplay Autoplay 1 of 31 Budget & Sensex There were no immediate triggers except for NBFC shares as the bellwether index fell amid fears of stock offloading to meet the new public holding rule. But analysts are betting on consumer and construction stocks in the medium term on the back of higher rural income and infra spending. Take a look at how the Budget can move these 30 Sensex stocks. Source: ICICI Securities



Note: Target price, stop loss and recommendation have a horizon of one year Asian Paints Asian Paints is a market leader in the decorative paints segment, with a market share of around 50%. There is no direct impact of the budget on the company. However, the thrust to build 1.95 crore houses by FY22 under PMAY would help drive volume growth of paint companies. Axis Bank Axis Bank, with focus on increasing retail book, is poised to benefit from additional tax deduction on affordable home loans. This will enable growth in advances, maintaining asset quality & capital consumption. Axis has shown improvement in curtailing NPA slippages in past 4 quarters. Bajaj Auto The government’s thrust on promoting electric vehicles through I-T exemptions as well as the proposed reduction in GST rates bode negative for traditional ICE vehicle manufacturers, including Bajaj Auto. The company will have to align its business model in favour of EVs domestically. Bajaj Finance Bajaj Finance is poised to benefit the most from the additional deduction of `1,50,000 for affordable home loans. The initiative to provide one-time credit guarantee for first time loss of 10% for bonds of sound NBFCs for a total issuance up to `1 lakh crore is also seen as positive.

The domestic equity market moved in a slow pace leading to the Union Budget. However, Dalal Street looked disappointed post Budget announcement. Holistically, the Budget was wholesome, rational and long-term goal-oriented. Nirmala Sitharaman has stressed on measures to improve inclusive growth, reduce income inequality, build digital ecosystem, create a cashless economy and bring about a transparent and honest regime.There were certain hard-core punches, which will change the dynamics in certain industries.But what surprised was the move to increase public shareholding in companies from 25 per cent to 35 per cent. This is probably the biggest wealth-transferring move in the interest of larger good of the country, but from the stock market’s perspective, there will be an overhang of supply and the market at large will face the repercussions. This will change the demand-supply equation in the capital market and a number of largecap companies with a high promoter shareholding will bear the brunt.The February 2019 Interim Budget was short-term oriented, given the pre-election compulsions, while post-election, the focus has shifted towards India’s long-term growth dynamics. 100 per cent FDI in insurance intermediaries will aid the insurance companies to boost premium growth and get a spot on the global financial map in order to mobilise global savings as insurance is highly underpenetrated with exposure to ~3.5-4 per cent in India.June car sales shrank by double digits for the third consecutive month in a row and the Budget did not look rosy from the auto company’s perspective. They will have to shell out more and put fresh capex in order to roll out electric vehicles as the Budget evidently took steps to boost electric vehicles. Plus, the proposed development of new metros will further dent demand for cars, especially in the passenger vehicle segment. This will be a huge negative for auto companies.Nifty50 has finally turned downward and made a lower top for the first time, indicating a likely change in trend. The market has resolved the state of confusion and finally turned sharply lower, which will now take it all the way down to 11,400 level, the gap which had remained unfilled. ‘Sell on rise’ should be the strategy for traders in the short term.With the much-awaited event finally over, its overhang will continue next week as the offshoots of certain proposals will be visible in the capital markets. As the divergence between Nifty and Nifty Midcap/ Smallcap indices was way above the past few years in June, there is higher likelihood of a larger correction in largecaps compared with the broader market. A higher correction is, therefore, in the making and investors must look to book profits in largecap companies as the process of mean reversion has started. Years of outperformance will now be followed by prolonged under-performance.Divest and avoid autos and highly-valued companies having high promoter holdings. The Nifty50 closed the week at 11,811, up 0.19 per cent.