First UPA budget will be popular one: Montek

IMF predicts India growth to be at least 4.5 per cent for 2009. The IMF also raised its predictions for world economic growth in 2010 from 1.9% to 2.4% as a result of successful stimulus plans, according to a source of El Mundo, a Spanish-language newspaper.

This is the first time since the beginning of the financial and economic crisis that the IMF's predictions about the global economy have been revised to HIGHER NUMBERS. In the case of the United States, the IMF has improved its predictions for this year, as well as next year; while it has predicted a slight improvement for Europe in 2010, according to the source.

Accumulate all the Railway related counters, especially Kernex Micro, Atlanta Ltd, Texmaco Ltd, Kalindi Rail Nirman Ltd (One declines), etc. Yesteday's morning call Kalindi Rail Nirman Ltd at Rs.179, T--Rs.195 (Target reached) gave good returns to the Paid Groups.

With the price of Crude Falling or consolidating in the $65--$75 ranges (as mentioned earlier), I think this is the best time to buy Glory Polyfilms Ltd.

New Delhi: The first budget to be unveiled by the new UPA government on 6 July will be “popular”, Planning Commission deputy chairman Montek Singh Alhuwalia said.

“The word populist has negative overtones, but I am sure (the) finance minister will present a popular budget. However, we should maintain the mystery of the budget and you have to wait and see what comes out,” he told in an interview.

Making a case for “strong government effort” to promote growth, Ahluwalia said, “The Prime Minister has said we should get back to between 8 and 9% economic growth rate), that might take a couple of years. I think it is feasible but it requires some strong and purposeful action.”

Prime Minister Manmohan Singh earlier in the month had asked the Finance Ministry “to ensure that the next union budget adequately and appropriately reflects the priorities and programmes outlined in the President’s address to the joint sitting of Parliament.”

Among other things, President Pratibha Patil had talked about a Food Security Act to provide 25 kg of rice or wheat per month at Rs3 per kg to people below poverty line.

Finance minister Pranab Mukherjee, who will be presenting the budget for 2009-10 in the Lok Sabha in first week of July, has already indicated the government “would continue to focus on public spending in employment oriented growth sectors, increasing the purchasing power of the people.

Excerpts of my morning mail to the Paid Groups:

........................Oversold readings are imminent on the daily charts, which hint at an impending resumption of the uptrend. A move above XXX (This portion for the Paid Groups) could perhaps be the first sign of this resumption.

Investors are advised not to go for aggressive shorts and burn their fingers...My all India sources are hinting towards a sudden rise in the stock prices, probably after or near F & O settlement. In any case we cannot wish away a pre-budget rally, which is expected to continue till the 2nd week of July, 2009, depending on the budget.