Contact Your Financial Adviser Money Making MC
17
December 2018
 |
Farmer
(The Total Investment & Insurance Solutions)
Despite the electoral reverses in key states
faced by the ruling BJP, the Union government is unlikely to announce any large
farm loan waiver or fiscal sops ahead of general elections, Credit Suisse said
Monday. The Total Investment &
Insurance Solutions
The agricultural distress is impacting 200
million workers and can cause political churn and policy experimentation,
leading to uncertainties in times of the ongoing economic slowdown, the foreign
brokerage said in a report. There has been speculation over steps the
government takes for the agri sector in wake of BJP losing assembly elections
in Madhya Pradesh, Chhattisgarh and Rajasthan, with some reports suggesting a
farm loan waiver would be around the corner before the general elections next
year. The Total Investment &
Insurance Solutions
"We do not expect any new large farm-loan
waivers or other fiscal sops in the run up to elections," the report said.
The report comes days after a group of economists including former RBI governor
Raghuram Rajan, pitched for doing away with farm loan waivers.
The
agri distress-induced uncertainties come at a time of economic slowdown and
there will be cuts to GDP growth estimates for FY20, which currently stand at
7.5-7.8 per cent, it said.
On the upcoming elections, it said in the
last two decades, there have not been visible impact on market direction
because of such exercises.
The brokerage said it prefers the industrial
sector to perform better than consumption, which has been a mainstay for the
last few years. With the expectation of industrials doing better, it said
corporate banks will also have a better showing.
It
said industrials have underperformed the benchmarks by 48 per cent in the last
decade, while the recent years have witnessed the sector stocks lagging despite
earning recoveries. The consumption stocks are "over-priced", it
said, adding that it is underweight on the sector
On the global developments, it said they
matter less for the domestic markets as the foreign portfolio investors account
only for a third of the trading volumes and have not been net buyers for the
last three years now. The Total
Investment & Insurance Solutions
No comments:
Post a Comment