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.
There is a possibility to have a positive re-rating for the Indian markets due to the appointment of P Chidambaram. Reuters
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.
PTI
