Budget to have no impact on the market in the near term: Survey

After the recent rise in the market, fund mangers have turned cautious in the short-term

According to a recent survey done by ICICI Securities, the Union Budget is going to be balanced with no major impact on the markets in the near term. 

 

The survey was done across domestic fund managers in the mutual fund industry. 

 

Total 30% of the fund mangers expect the Union Budget to be reform oriented and positive. Whereas, the rest of them think it will not have any kind of impact at all on the market.

 

The study was done to know the market sentiments and an overall outlook towards the equity market. While majority of the fund managers have turned slightly cautious in the near term, the longer term investment horizon still remains positive. 

 

The number of fund managers having a bullish outlook for the short term has reduced from 58% three months ago to 40% now. The bullish sentiments among investors has also fallen considerably. For instance, three months back 50% of them were more confident about investing in the markets as compared to 10% now.

 

The survey further says that, 80% of the fund managers interviewed, believe that the equity markets are fairly valued now. Whereas, 70% of the fund managers expect the market to be up between 10 and 15% by the end of 2013. Around 30% of the fund managers expect the market to deliver returns in the range of 5 to 10%. 

 

The FMCG/consumer oriented sector has seen a significant decline in preference as compared to the previous survey. Sectors like banking, automobile and telecom have also seen some decline in preference.