What markets are expecting from the budgets

The markets seems to be at an all-time high. People are speculative and apprehensive to invest in the markets. Foreign FDI is seeping in slowly in the economy. The valuations and the markets are expensive. In the backdrop of all these circumstances, budget seems like something which can prove to be the fuel which have the power to fire up expectations but at the same time have the power to burn everyone’s expectations if not handled carefully.

The markets are booming in because of the foreign FII and FDI. It appears to be natural on their part to expect a lot of things, reforms and infrastructural strength in the economy so as to continue fresh flow of investments. If the finance minister fails to present a promising budget for the FDI’s, then it may turn out to be disastrous for the markets. All the valuation of the markets that is solely depending on the foreign investment can collapse and this in turn can break down the momentum of the markets.

In such a situation, the markets can collapse, but this is not a time for the general investor to panic and move out of markets, because being fundamentally strong and promising, the Indian economy might be vulnerable to ups and down because of volatility in markets, but as time will progress, the markets would move towards great heights in the coming time of 6-12 months ahead.

Another situation is if the budget appears promising to various segments, the markets can achieve much great heights than they are today. So, it is advisable for investors to stay in the markets with a long term horizon, so as to get the best out of your savings and investments.