NIFTY might soar to 8200-8500 by the end of this year. The government’s focus on creating long term financial stability and providing a business friendly environment might act as the catalyst to economic boom. 
Image source:https://www.dynamiclevels.com/report/charts-technicals
Hailed by many as the blue print to India’s economic prosperity, the NDA government’s maiden budget has been described as well-balanced, insightful and promising by Industry mandarins. Even though the market activities told a different story, the plummeting NIFTY and Sensex levels are being seen as a temporary and transient phase in the long term bullish market. Tables are already turning with NIFTY and Sensex inch upwards slowly but surely. Thanks to the finance minister’s reforms, the corporate ambience of the Indian economy is expected to show rapid growth. The reforms ensure that the FIIs and DIIs will be keen to park considerable sums of money in India.
The NDA government had stated its intention in its election manifesto of giving the nation a total economic makeover. In a nutshell, they had committed to take corrective measures wherever the UPA government had botched up. To a considerable extent, the union budget consolidated the intentions of the new government to create an investment friendly climate in India. Financial stability, inflation control and fiscal consolidation are the key words when describing the Finance Minister’s areas of focus. The Finance minister stated in his budget speech on the 10th of July, his commitment to curb inflation and kept FY Fiscal Deficit at 4.1% of the GDP. He also proposed an investment of Rs 70.6 Billion to create 100 ‘smart cities’. Rs 3600 crores was proposed for the drinking water project, Rs 8000 crores for rural housing project, Rs 14300 crores for rural road project, Rs 150 crores for women’s safety and Rs 500 million for urban infrastructure project. FDI in defense changed to 49% and FDI in India Insurance to 49% also. Mr Jaitley also spoke about setting up four more AIIMS across the country.
Similarly, considerable investments were suggested for developing harbor projects, National Highways and for funding the Farm Infra Fund. It was also mentioned that banks would provide long term loans for infrastructure. Mr Jaitley also stated that the government would provide special incentives for REITs (Real Estate Investment Trust) and would also give them a tax pass through status to avoid double taxation. The last step is aimed at boosting the Real Estate sector. Realty stocks saw fair weather as soon as Mr Arun Jaitley mentioned his intention in his speech.
With positive business sentiment prevailing far and wide and the government committing to inject life into the Real Estate, Power and Infrastructure sector, analysts are highly optimistic about the future economic scenario of the nation. Finance gurus predict that NIFTY might soar to 8200-8500 by the end of this year. Currently it is a safe option to park your funds in the defensive sector. But with the government implementing all that they have promised, investors can spread their wings and explore wider horizons at a later stage.