Union Budget key to watch out for, buy on dips: Macquarie

Rakesh Arora, Macquarie says while the Indian market is not isolated from the ongoing global volatility, the current weak global backdrop does project India as a relatively attractive asset class.

“With sharply lower commodity prices, favourable macro indicators like inflation, CAD & fiscal deficit and now rate cuts, we believe conditions are ripe for economic recovery to take shape,” he adds.

According to him, the government sustaining its policy momentum and delivering on reforms would be key. “Markets will closely watch the upcoming Budget session in late February.  In our view, any market weakness should be seen as an opportunity to buy,” says Arora.