The pre-Budget rally witnessed in stock markets in the last couple of days sustained itself on Friday, responding to Union Finance Ministery Arun Jaitley's statement that his party's defeat in the recent Delhi Assembly polls won't slowdown economic reforms.
The 30-scrip benchmark index – S&P BSE Sensex – has risen about 860 points in four straight trading sessions starting from Tuesday, to end slightly above 29,000 on Friday. Analysts are expecting it to cross the 30,000-mark, either days before the Budget or around 28 February, the day it will be presented. The target for the 50-scrip Nifty is 9,200.
On Thursday, Jaitley, while speaking in the presence of US Treasury Secretary Jack Lew in New Delhi, had said, "The fact that four (state assembly) elections have been won and one has not been won is absolutely no ground for believing that there will be any slowdown on the path which we have undertaken."
Brokerages and investors are expecting Budget 2015 to contain proposals to increase capital spending and extend tax breaks for the manufacturing sector, which has continued to remain sluggish.
Investors should look at the government's spending plans and in areas that would receive more funds, Birla Sun Life Mutual Fund Co-CIO Mahesh Patil said.
He added that the government should increase its spending in a few areas, with special emphasis on infrastructure and was keen to know the government's plans to incentivise the manufacturing sector.
With the BJP winning only three seats of the 70 in Delhi, investors were worried if Prime Minister Narendra Modi would go for 'populist measures'. However, Jaitley was quick to dispel any such apprehension.
Investors and analysts have seen the stock market gain momentum in the run up to the Budget. Expectations point to the markets hitting fresh records on hope of further reforms being initiated by the NDA government.
They implore investors to continue to use every opportunity, particularly the volatilities to continue to stay invested, said EconomicTimes.
The upcoming Budget is expected to be the harbinger of the government's plan and direction for India over the next few years.