On May 16 , 2014 Whole India was ecstatic as majority
government was formed at the centre lead by charismatic
personality of Shri Narendra Modi. Well, That is past now but apart from that
we have got good reasons to buy stocks even at current level.
Leadership and the Vision
The most important factor that anyone looks for is the
management running the company.
Similarly we have Team Narendra Modi at the centre that
has the vision, will power,honesty, skills and dreams of
seeing India as super power.
Strong Pro Growth Budget
The Union Budget for 2015-16 has set the ground for a
brighter medium term outlook. The government has taken a conscious decision to
revive the investment cycle by mobilizing resources towards infrastructure and
thereby facilitate growth across sectors. Reduction in corporate tax is big
positive for the companies.
Low Inflation
Inflation is the key parameter considered by RBI to
reduce rates.Low crude prices will help our country to reduce import bill. Low
inflation and high economic growth is what every country aspires for. Once
Inflation is low and stable, RBI will start reducing rates more frequently
which will pave way for long term Bull Run in stock markets.
GST implementation
The GST roll out will
prove to be a revolutionary step and has potential to transform the
"fiscal architecture" of the government. In some ways it is as
revolutionary and as profound as what happened in 1991 because it is changing
fundamentally the manner in which the Indian government functions.
GST will
"fundamentally change the taxing power of the states, local governments
and the Centre", and through the devolution to the states, it will
transform the "fiscal architecture" of the Indian government.
Schemes that will support growth in GDP
Housing for all, Cleanliness drive, Jan dhan
yojana,Faster Project clearances (e-Governance), Adarsh Gram
Yojana,Smart city concept are some of the flagship schemes that has potential
to transform India and take it into next big league.
What are you waiting for?
All the above mentioned factors are more than sufficient
to invest in markets even at current level for medium term. There will be
volatility in short term but nobody should doubt about long term potential that
India possesses. So, don’t wait and invest in high quality companies and become
part of India growth story that is set to unfold over next few years.
For stock Ideas and queries please drop me mail
at: ankurjainraj@gmail.com
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