Indian markets can be re-rated positively following the change of guard at the Ministry of Finance, a brokerage firm said in a report.
“There is a possibility to have a positive re-rating for the Indian markets due to the appointment of P Chidambaram as the Finance Minister,” IDFC Institutional Equities Research Managing Director Nikhil Vora.
He was speaking to reporters after release of the firm’s report titled “The Stock Called India”. The report, thematic in nature, draws parallels between the working of a company and the government.
It says while management (or Governments) can hold back a company’s performance, a change in practices can trigger a re-rate.
Vora said during Chidambaram’s previous stint at North Block, the BSE’s 30-share Sensex had risen by 60 percent. “Chidambaram is seen more of a doer and he has already outlined reviving growth as his primary objective,” Vora said, adding his recent comments on having a re-look into retrospective taxation measures has boosted the markets.