Attention will now be focused on how the government will strike a balance between the promotion of economic growth and fiscal management.
Finance Minister Nirmala Sitharaman is expected to announce the government’s final budget on February 1, ahead of the 2024 general elections. The time has come for governments to balance supporting their economies in the face of global headwinds with the path to fiscal consolidation. Attention will now be focused on how the government will strike a balance between the promotion of economic growth and fiscal management. Meanwhile, market participants are waiting for the decisive direction of this protracted consolidation. This is because the primary trigger point is the federal budget.
Historically, in 14 out of 22 years, existing trends have reversed post-budget. At the same time, pre-budget months have a neutral bias and post-budget months have a negative bias. Only seven times in the last 26 budget meetings (including the “accounting vote” budget) did the index move above 1% and he moved to 4%). Even the historic fall of 2020 was triggered by the budget. This time, wait for the trigger and follow the direction. Whatever the outcome, we believe equity-specific action will continue in D-Street. The top three lists are below. small cap Stocks that historically tend to perform strongly in February.
So, here’s the list of small caps to watch for the 2023 budget, or February:
Shankara Building Products: As history suggests, stocks averaged gains of nearly 21% in February, with a 100% positive rate five out of five times. So keep a close eye on this strain.
SKF India: Historically, February has been excellent for this stock as it delivered positive returns on 14 of 21 instances, resulting in a positive rate of 67%. The average return on this stock is 8.61%, but the maximum return in February was a staggering 30.90%.
Manapuram Finance: If history is to be believed, 14 of the last 21 trades have had positive moves, so February could be a strong month for stocks. The average return for February is 12.47%.
Let us know in the comments section which stocks are trending in February.