The BSE Sensex rallied nearly 300 points to hit its fresh lifetime high of 25809.66, while the Nifty rose 85 points to hit its record high of 7720.15 in trade today.
"It is some sort of a pre-Budget rally that is panning out right now. In addition to that, the global markets are in a sweet spot and in addition people are not that concerned about what has been happening in Iraq. That is in the prices more or less," said Sanjay Dutt, Director, Quantum Securities.
Most analysts do not see a runaway rally from here on till the Budget 2014. We are left with just five trading sessions ahead of the Budget, which is due on 10 July.
"We have had a very nice pre-budget rally. But there are some dark clouds, not the monsoon variety, but the other variety which were looking at the market, especially what happened in Iraq and the delayed monsoon," said R Venkataraman, MD, IIFL.
No doubt, there are lots of expectations built into the budget, especially after the speech which the Honourable Prime Minister made in the Parliament where he talked about very pragmatic economic measures, where he talked about reforms in manufacturing, job creation, agriculture, extremely stable tax regime, FDI, increasing ease of doing business in India.
"So till the budget, we expect a rally and then we will wait and watch and see what actually the Finance Minister delivers on July 10th, before taking a fresh call on the markets. So, that I personally think the odds of a blockbuster dream budget are unlikely," added Venkataraman.
Expectations of a slew of growth-focussed reforms by the newly-elected Modi government are expected to drive the benchmark stock markets higher in the second-half of 2014 and the Budget will lay down the roadmap.
"We continue to expect reforms to drive the markets to our year-end target of 27,000 points, though we could see near-term consolidation as it absorbs worries on a poor monsoon and the strife in Iraq," Bank of America Merrill Lynch (BofAML) said in its India strategy report.
Stocks related to sectors which will benefit from uptick in economy are likely to benefit more rather than the usual defensive pack or exporters in the upcoming Budget 2014.
Apart from reviving infrastructural development, the NDA government has also stated that creating more employment would be one of their key objectives. Development in the infra sector would certainly help in creating employment.
We have collated a list of ten stocks from various analysts that investors can 'buy' ahead of the Budget 2014:
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Kiran kumar Kavikondala, Director & CEO, WealthRays Securities
IRB infrastructure:
The NDA government is expected to take measures to boost infra and realty sectors. There are certain areas where reforms can be considered and in such a scenario, IRB infra is one of the major companies in the infra sector which would stand to gain.
The company is expected to obtain several major projects in the months ahead. The upcoming budget would help in fast track implementation of several infra projects which have been stalled over the years.
With several road improvement & related projects in the pipeline, this leading company will certainly be taking up many new projects. Hence IRB infra is one of the stocks to look out for post the upcoming budget.
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