No pre-Budget rally this time: Analysts

New Delhi, Feb 21 (PTI)

Will there be a pre-budget rally this time around 

or not is the question that is haunting the traders 

as the markets enter the Budget week. However,

analysts are of the opinion that a rally seems unlikely

in the current scenario as the market is under selling 

pressure and volatility will persist in the market

in the run-up to the Budget.

 

"The expectations from the Budget are relatively
low this time around. The market is expecting a
Budget that is growth oriented and adheres to fiscal targets.

It may not become euphoric this time before the Budget,
" Kotak Securities managing director Narayan SA said.
Benchmark indices have dropped around 12 per cent
since the highs it touched last October.

Analysts believe the Budget will no longer impact
the market in a major way as global cues will also
determine the movement. "Global events are
dictating movement more than local expectations.

There are not much positives expected out of the
Budget and hence we do not expect it to rally,"
HDFC Securities head-private broking and wealth
management Vinod Sharma said.

Over the last 18 years, the markets have fallen 2-7 per cent
in the run-up (five trading sessions before the Budget)
on nine out of 20 occasions.

"The markets would be volatile and no big rally
is expected before the Budget as investors are
aware of the position of the Finance Minister
and do not have big expectations,"
Unicon Financial chief executive Gajendra Nagpal said. .