Market eyes Budget 2014 for direction; stocks & sectors to watch out for

NEW DELHI: The Indian markets have picked up momentum in the run-up to the Budget 2014, which will provide the much-needed direction to the markets, say experts.

"Most of the expectations are running a little ahead of what the government can actually do midyear, because one has to remember that they have taken up the government by the half of this financial year," said Tushar Pradhan, CIO, HSBC Asset Management.

"What we all should expect from the budget is that it should give a little bit of a signal in terms of what the broader direction of policy is likely to be for the rest of the period that the government will be in power," he added.

Amid heightened hope of ‘acche din’ in contrast to bitter ground realities, the Union Budget would be the first policy announcement from the newly-elected government and consequently a big test of its resolve to walk to talk.

The markets would be looking at a pragmatic budget with credible numbers and intent of government on critical reforms (tax reforms, subsidies, divestment, FDI etc) from medium to long term perspective, Sharekhan said in a report.

Most brokerage firm have already started recommending their clients to look at specific stocks which are likely to benefit from the upcoming Budget 2014 based on specific policy reforms.

We have collated a list of key expectations from different brokerage firms from the upcoming Budget 2014 and stocks to watch out for:

Source: Sharekhan, Deutsche Bank