What you refer to as the recent budget was just a vote on account which is usually the case before any impending central govt election . It does not carry the full significance of a regular budget.
The other aspect of this question is about the impact of the announcement on various sectors. Regarding this I would like to narrate an anecdote which establishes the importance of not giving too much importance to announcements and news out in the public domain.
We were lucky to attend Howard Marks lecture at Mumbai few years ago. He narrated the incident as follows. According to Howard, one day his son came very excitedly to him and mentioned that he should buy shares of a particular automobile company because he read it in the newspapers that its latest model was selling like hotcakes.
Howard next asked his son “WHO DOESN’T KNOW IT?” If the news is out in the newspapers it is probably baked into the price, or atleast the bulk of it is built into the price. Similar is the thing you are asking, Who doesn’t know whatever is mentioned in the (so called ) budget announcement?
In this day and age of very quick transmission of news/rumours its futile to react to these kind of stuff. Instead its better to go through the old grind of tracking companies, doing detailed research and then take a call.
Maximum and quickest money is made when we can catch a company in transition at an early stage. That transition can be a laggard company entering growth phase, or a turnaround company heading towards successful times, finding sectoral tailwinds, a chart breakout, or chart breakouts in companies of the same sector, so on and so forth. We at VP are lucky that there are a lot of noble hearted folks who share their research and that too at an early stage of a stock’s journey. That is the time for us to buckle up and do full research to either accept or reject the idea.
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