The fiscal math assessment is more relevant for FY19 as FY20 numbers will get substantially changed with the formation of the new government after the 2019 General Elections. Benchmark indices are likely to move sideways, so investors are better off placing bets on select sectors which are likely to get benefit from the Interim Budget, suggest experts.
Emkay Global has maintained its Nifty target range of 11,000-10,400 but continues to remain cautious on mid & smallcap stocks. It is 'overweight' on IT services, pharmaceuticals, BFSI (primarily private banks), and specialty chemicals; 'equalweight' on auto & auto ancillaries, consumers, oil & gas, metals & mining, and fertilizers & agro-chemicals; and 'underweight' on capital goods, construction & infra, cement and telecom.
The global investment bank, UBS maintained its Nifty base case of 10,000 for December 2019, and remained 'selectively overweight' on consumer discretionary and neutral on autos. It remains 'underweight' on industrials/infrastructure sectors.