- Things that were not taken care in the Budget 2010:
- Inflationary pressure: There are 2 reasons to support it: Hike in oil prices and Excise duty hike by 2%.
- Oil Sector Mess: Minimal provision for Oil subsidy; No consideration for Kirit Parekh Report to deregulate Oil prices.
- Revenue deficit: The govt. has set its target, but execution will be the key. The targets are divestment Rs. 40000 Cr. 3G auction Rs. 35000 Cr and Oil subsidy reduction to 14800 Cr. from 60000 Cr.
- Corporate earnings for Q4 09-10: May surprise the market. Reasons could be excellent IIP numbers, increase in revenues.
- Global Event: Countries like Greece, Portugal and Spain may face soverign default which may correct the Indian Market by 4-5%.
- Monsoon: Expectations are high from monsson.
Nimesh.
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