During the week gone by, Mr Market was jittery ahead of the Union Budget and on concerns over high valuation of frontline stocks. If the Budget does not meet the high expectations, which historically it rarely has, the market can see a sharp selloff post Budget.The odds for this look high, this time too. Kotak Mahindra Bank reported a 27% increase in PAT; HDFC Bank logged 30% jump in PAT on a YoY basis, whereas, Axis Bank reported muted earnings performance with a 6-odd per cent PAT expansion. Nonetheless, the financial sector witnessed slow loan growth and remained feeble across the industry, both on retail as well as corporate sides. If, therefore, the government does not announce a ‘scrappage policy’ in the upcoming Budget, the sector might see a massive selloff in the aftermath.

Source: Economic Times January 25, 2020 05:33 UTC