Will Budget 2019 set tone for stock market, investors? Here's what Dalal Street can expect

Budget 2019: As per trade experts, it will be wise and fruitful to invest in the industries or sectors that would benefit from the Modi Government’s last budget before Lok Sabha Polls 2019.

Budget 2019: Ahead of Interim Budget 2019, traders and investors at the Bombay Stock Exchange are treading cautiously. (PTI)

Budget 2019: Ahead of Interim Budget 2019, traders and investors at the Bombay Stock Exchange are treading cautiously. As per trade experts, it will be wise and fruitful to invest in the industries or sectors that would benefit from the Modi Government’s last budget before Lok Sabha Polls 2019. The general elections will give a clear indication if the Modi wave is still reeling high in the country or it has doomed in the past five years. Interim Budget 2019 being the last budget before General Elections 2019, populism can’t be ruled out by the FinMin to woo voters. Reports are riff that BJP may pitch-in a Full Budget. The government is already on a spree of meeting long pending demands of the middle class, be it approving 7^th Pay Commissions’ recommendations for various categories of central government employees, or its 10% EWS Quota move, amongst many others. The NDA has advocated for rural development and agricultural upliftment of the country, thereby these two areas would be top priority of the Finance Minister for Interim Budget 2019 as well, which boils down to the fact that if sops are announced for agriculture sector then agro and allied industry stocks are bound to flourish, apart from rural-focused stocks. As per financial experts, putting stakes in HUL, Dabur, ITC and the likes is likely to give good returns if Interim Budget 2019 turns out to be a populist budget and the ruling NDA’s election manifesto. Infra stocks too are expected to take a bullish route after Interim Budget 2019. On the other hand, the Modi government is speculated to announce tax exemption on home loans and for other insurance products. The move will benefit housing finance, private banking and insurance stocks. The Ministry of Finance had hinted at merging National Insurance Company, Oriental Insurance Company and United India Insurance Company into a single insurance entity in recent times, thereby a concrete outcome on this front can be on cards. Lastly, MSMEs have long demanded to constrict LTCG on sale of property, besides major industry  players demanding to rationalize Corporate Tax irrespective of turnover threshold. Any new announcement in favour of corporate tax or long term capital gains will result in an upward movement of the sensex and nifty.