5 stocks to buy which could give up to 14% return

Avoid bottom fishing in this market; 5 stocks to buy which could give up to 14% return

The big support for the index is placed around 10,398 and a fall below could take the index towards 10,300-10,200 levels

Kshitij Anand

@kshanand

  

MCX India

WatchlistPortfolioMessageSet Alert

NSELIVE

09 Feb, 2018 15:59

 721.65  -17.05 (-2.31%)

Volume 266631 Todays L/H 704.20729.85

More

The Nifty50 breached key support levels in the past five trading session and closed by about 3 percent lower for the week ended February 9 signaling a pause in the momentum which we saw in the beginning of the year 2018.

Apart from domestic factors such as rising crude oil prices, high valuations, concerns over higher fiscal deficit as well as the imposition of long-term capital gains tax (LTCG) of 10 percent weighed on sentiment — the larger part of the decline can be attributed to global markets.

Investors are advised to stay light and avoid bottom fishing at current levels. The market has turned from buy on dips market to sell on rallies. Hence, any bounce back should be used to create short positions, suggest experts.

The big support for the index is placed around 10,398 and a fall below could take the index towards 10,300-10,200 levels.

RELATED NEWS

M-cap of top 10 companies erodes by over Rs 1 lakh crore

OVL and its partners acquire 10 percent stake in Abu Dhabi oilfield for $600 million

“As we all know, markets find its own reasons to correct and this time too, the global markets became the major culprits for drawing correction this time. With reference to previous articles, the short-term tide has now turned lower and looking at the ‘Bearish Engulfing’ pattern on the weekly chart; we do not expect any relief soon in the market,” Sameet Chavan, Chief Analyst, Technicals & Derivatives at Angel Broking told Moneycontrol.

“At present, markets are undergoing much awaited (and required) correction. We reiterate that traders need to be very selective as the volatility is likely to remain on the higher side and also with such global issues; the opening direction is mainly dictated by the overnight cues from the global markets,” he said.

Chavan further added that one should avoid taking any kind of undue risks and should rather remain light on positions. In fact, it would be a prudent ploy to stay light and avoid making any kind of bottom fishing till the definite signals emerge.

Here is a list of top five stocks to buy in this week which could give up to 14% return:

Analyst: Sameet Chavan, Chief Analyst, Technicals & Derivatives at Angel Broking

MCX: BUY| Target Rs 825| Stop Loss Rs 670| Return 14%

This has been a wealth destroyer over the past one year and has now reached its multi-year support zone of 700. The relentless fall from 960 got arrested last week as the stock managed to recover from the new ’52-week low’ of 671.75 and then went on to form a ‘Morning Star’ pattern on daily chart.

This pattern has a bullish implication and indicates a short-term reversal. Thus, we expect a decent retracement of this recent severe correction. One can look to go long for a reasonable target of Rs.825. The stop loss should be fixed at Rs. 670.

Tata Chemicals: SELL| Target Rs662| Stop Loss Rs715| Return 5.4%

Recently, we saw a significant amount of correction in this stock from the high of Rs782. Last week, the stock prices managed to take some breather around ‘200-day SMA’ and eventually, recovered a bit from recent lows.

If we meticulously observe the daily chart, the corrective phase resulted into a breakdown from the multiple supports around 710 and hence, the relief rally during the week can be construed as a bounce back or just a relief rally.

Going by the ‘Change of Polarity’ rule, earlier support would now act as a strong hurdle and hence, we may see this stock facing some selling pressure around its current levels. We recommend selling this stock for a target of Rs.662 by following a strict stop loss at Rs.715.

Analyst: SMC Global Securities Ltd

BEML: BUY| Target Rs1400| Stop Loss Rs1180| Return 11.4%

The stock closed at Rs 1256.15 on 09th February 2018. It made a 52-week low at Rs 1125.15 on 25th May 2017 and a 52-week high of Rs. 1947 on 19th September 2017. The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently placed at Rs1520.79.

After registering an all-time high of Rs1947, the stock has beaten down sharply from its highs and tested Rs1150 levels, which was its earlier support zone.

Apart from this, 200-WEMA was also laying around Rs1140 levels. The stock witnessed a bounce back from the said level and formed a reversal candle on the weekly charts.

On the indicators front, RSI and MACD are showing the positive divergence for the stock to bounce back is expected from current levels. Therefore, one can buy in the range of Rs1235-1245 levels for the upside target of Rs1370-1400 levels with a stop loss below Rs 1180.

InterGlobe Aviation: BUY| Target Rs1400| Stop Loss Rs1200| Return 11.2%

The stock closed at Rs1258.65 on 09th February 2018. It made a 52-week low at Rs815 on 14th February 2017 and a 52-week high of Rs1346.70 on 16th August 2017.

The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs1153.45. As we can see on charts that stock is continuously trading in the wide range of 1050-1320 from August 2017 and has been forming a “Symmetrical Triangle” on weekly charts, which is bullish in nature.

Last week, the stock gave the pattern breakout but couldn’t hold the high levels due to correction in broader indices.

Overall, bias is still looking positive for the stock as there is a rise in the volumes which shows the strength for the stock.

Therefore, one can buy in the range of Rs1240-1250 levels for the upside target of Rs1370-1400 levels with a stop loss below Rs1200.

Analyst: Dinesh Rohira, Founder & CEO, 5nance.com

Steel Authority of India (SAIL): BUY | Target Rs.104 | Stop-loss Rs85 | Return 11%

Last week SAIL registered an uptrend breakout from its short-term moving average level placed at 86, after consolidating from 52-weeks high level seen on 8th of last month. It decisively managed to rebound from 81 level abetted by volume growth throughout the week and settled at just 7 points below its 52-week high.

With price trading above all the crucial moving average level, it formed a solid candlestick pattern on the weekly price chart, attempting to breakthrough its higher band.

The weekly secondary momentum indicator suggests a positive breakout with RSI level at 61 coupled with MACD witnessing a crossover from its Signal Line, indicating an uptrend phase.

The immediate support level for scrip is currently placed at 81 and resistance level is seen at 101 followed by 108. We have a BUY recommendation for SAIL which is currently trading at Rs. 93.95.

HomeBudget Budget 2018 philosophy in overall national interest, says FM Arun Jaitley

HomeBudget Budget 2018 philosophy in overall national interest, says FM Arun Jaitley

Budget 2018 philosophy in overall national interest, says FM Arun Jaitley

Budget 2018: In a rebuttal of the criticism of Budget 2018-19 pandering to the farm sector in a pre-election year at the expense of the middle class and the corporate sector, Finance Minister Arun Jaitley on Friday showed how his latest budget exercise is actually designed to boost overall economic growth with the help of all segments.

budget 2018 reactionsBudget 2018: However, capital gains made on shares until January 31, will be “grandfathered”, Jaitley said, adding “we have protected all investments coming in before February 1”. (Twitter)

Budget 2018: In a rebuttal of the criticism of Budget 2018-19 pandering to the farm sector in a pre-election year at the expense of the middle class and the corporate sector, Finance Minister Arun Jaitley on Friday showed how his latest budget exercise is actually designed to boost overall economic growth with the help of all segments. Interacting here with corporate leaders following his Thursday presentation in Parliament of his last full budget before the general elections due in early 2019, Jaitley said that a stressed agriculture sector was not in India’s interest, indicating thereby that boosting rural demand is a key in helping Indian industry currently burdened with massive leverage, while banks struggle with their accumulated bad loans.

“To have a stressed agriculture sector and ramshackle infrastructure does not serve the country’s interests,” Jaitley said, adding that the farm sector had been under “a lot of stress for the last seven to eight years.” Noting that the stress in the agriculture sector “is real”, he said the philosophy behind Budget 2018-19 is that there remained “segments of the economy that need large amounts of government support” although services are doing well and manufacturing had picked up in the last two quarters. For the Kharif agricultural output, the budget has increased the minimum support price to one-and-a-half times the production cost, raising institutional farm credit to Rs 11 lakh crore in 2018-19 from Rs 8.5 lakh crore.

Income tax Calculator: Calculate impact of Arun Jaitley’s Budget 2018 on your tax liability

Fifteen per cent higher subsidies at Rs 2.64 lakh crore are proposed on food, fertilisers and petroleum products. The budget highlight was the Ayushman Bharat National Health Protection Scheme that aims to cover 50 crore poor people, with the scheme’s contours being worked out. Under Ayushman, Rs five lakh cover will be provided annually to 10 crore poor and vulnerable families in the country, while the budget provides Rs 2,000 crore for the scheme as initial outlay. “On social welfare we started in a somewhat disconnected way, but now some kind of social security net is beginning to take shape in which the poor beneficiaries are also sharing some of the cost,” the Finance Minister told the industry leaders.

Watch: Tax Takeaways From Budget 2018 For The Common Man

Asked about the small outlay on the health scheme, he said more funds would be made available going ahead. At the post-Budget briefing on Thursday, he had said that as the country progressed economically, setting up a social security net had become essential. On corporate tax, Jaitley pointed to the proposed reduction to 25 per cent from the coming fiscal for companies which had a turnover up to Rs 250 crore during 2016-17. Declaring that the ceiling had been raised to go with the new definition of SMEs, he said it would benefit the entire class of micro, small and medium enterprises which accounts for almost 99 per cent of the companies filing their tax returns.

Read also: Budget 2018 key takeaways: India on tenterhooks, did Arun Jaitley give income tax returns, other reliefs? Truth on tough love here

The revenue the exchequer will forgo during the coming financial year on account of this relaxation has been estimated at Rs 7,000 crore. On the other hand, to mobilise resources required for schemes, the long term capital gains tax has been reintroduced. Budget 2018-19 on Thursday proposed to tax long-term capital gains on equities exceeding Rs 1 lakh at 10 per cent, which is expected to bring in a revenue of Rs 20,000 crore. However, capital gains made on shares until January 31, will be “grandfathered”, Jaitley said, adding “we have protected all investments coming in before February 1”.

Watch: Budget 2018: 10 New Facts On The Indian Economy

Regarding the customs duty imposed, he said that it had been restricted to a few sectors to block cheap imports from destroying domestic industry. The budget hiked customs duty on mobile phones to 20 per cent from 15 per cent — a move that will force foreign players to pass on the burden to consumers. Presenting the budget on Thursday, Jaitley also made a significant announcement of fiscal slippage with implications for pushing inflation, revising upwards the government’s fiscal deficit target for 2017-18 to 3.5 per cent of the GDP, or the equivalent of Rs 5.95 lakh crore. The higher target came in place of the 3.2 per cent – or Rs 5.46 lakh crore – for the current fiscal announced earlier.

Budget 2018: Here’s what has changed for taxpayers, senior citizens

HomeBudget Budget 2018: Here’s what has changed for taxpayers, senior citizens

Budget 2018: Here’s what has changed for taxpayers, senior citizens

Budget 2018 belongs to Bharat (rural India) with special emphasis being laid on welfare of farmers, the socially and economically weaker sections of the society. The main focus of the Budget has been on farmer empowerment, health care schemes, infrastructure and ease of living for the common man.

 Budget 2018, UNION BUDGET 2018, arun jaitley, narendra modi, taxpayers, senior citizens, rural india, tax rate Budget 2018 belongs to Bharat (rural India) with special emphasis being laid on welfare of farmers, the socially and economically weaker sections of the society. The main focus of the Budget has been on farmer empowerment, health care schemes, infrastructure and ease of living for the common man.

Budget 2018 belongs to Bharat (rural India) with special emphasis being laid on welfare of farmers, the socially and economically weaker sections of the society. The main focus of the Budget has been on farmer empowerment, health care schemes, infrastructure and ease of living for the common man. However, in the process of empowering Bharat, Finance Minister Arun Jaitley has not provided much relief to the salaried class.

On the personal taxation front, the high pre-Budget expectations of the salaried class were moderated with no major tax relief announcements.

The key takeaways from the 2018 Budget in respect of personal taxation have been listed below:

Tax rate for individuals

FM Jaitley has kept the slab rates as well as the tax rates unchanged. However, the FM has increased the cess by 1%. The 3% “Education cess” has been replaced by a 4% “Health and Education Cess”. Accordingly, this will increase the tax outgo for all individuals. The higher the income, the higher will be the tax outgo.

Introduction of standard deduction of Rs 40,000

The Budget 2018 has reintroduced the concept of standard deduction with a view to reduce paper work and hassles of maintaining documentation. The standard deduction of Rs 40,000 has been introduced in lieu of tax free limit of transport allowance of Rs 19,200 per annum and medical expenses reimbursement of Rs 15,000 p.a. Effectively, the net increase in exemption is only to the extent of Rs 5,800 p.a. The standard deduction will be available as a flat deduction while calculating salary income.

However, in case of differently-abled individuals, the benefit of tax exemption of transport allowance of Rs 38,400 p.a. will continue in addition to standard deduction of Rs 40,000.

Relief to senior citizens

The FM has granted various tax benefits to senior citizens. This is a welcome step.

# Exemption of interest income on deposits with banks (including fixed deposits and recurring deposits) and post offices has been increased from Rs 10,000 to Rs 50,000. Further, there will be no TDS for such interest income under section 194A upto Rs 50,000.

# Deduction limit under section 80D towards health insurance premium has been increased from Rs 30,000 to Rs 50,000 for all senior citizens and very senior citizens. In addition the benefit of medical expenditure which is currently available to very senior citizens who do not have mediclaim is also now extended to senior citizens and the deduction has also been enhanced from Rs 30,000 to Rs 50,000.

# Deduction limit under section 80DDB in respect of certain critical illness has been increased:

i. For senior citizens from INR 60,000 to INR 1,00,000;

ii. For very senior citizens from INR 80,000 to INR 1,00,000.

Reintroduction of tax on Long Term Capital Gain (LTCG)

Currently LTCG from sale of listed equity shares (ES) and equity-oriented mutual funds (EOMF) is exempt from tax. However, the Budget has proposed to tax the LTCG from ES and EOMF exceeding Rs 1 lakh @ 10% plus surcharge (SC) and education cess (EC),without the indexation benefit.

However, in order to reduce the tax impact on sale of ES and EOMF purchased before 1 February, 2018, grandfathering provisions has been introduced. As per the provision, for shares purchased prior to 1 February 2018 and sold after 31 March, 2018, long term capital gains earned up to 31 January 2018 will not be taxable. However, any excess earned on sale post 31 March2018, will be subject to tax @ 10% (plus SC and EC) subject to exemption on LTCG of Rs 1 lakh.

For example, if an equity share is purchased before 1 February, 2018 at Rs 200 and the share price quoted on 31st January, 2018 in respect of this share is Rs 250, there will be no tax on the gain of Rs 50 if this share is sold post 31 March, 2018 after one year from the date of purchase. Any gain in excess of Rs 50 earned after 31st January, 2018 will be taxed at 10% (plus SC and EC). However, while computing LTCG for shares sold after 31March, 2018, LTCG exemption of Rs 1 lakh will be available.

Extending the benefit of tax-free withdrawal from NPS to all assessees

The benefit of tax-free withdrawal of 40% of total amount payable on closure of the NPS account or opting out of NPS has now been extended to non-employee individuals also. This has brought in parity between all individuals.

The Budget 2018 has been a mixed bag for individuals, but positive for senior citizens as it will provide much-needed funds for their retired life.

Budget 2018

HomeBudget Budget 2018: Modi government to provide cheer for these 3 areas. Hint – job seekers have reason to be happy!

Budget 2018: Modi government to provide cheer for these 3 areas. Hint – job seekers have reason to be happy!

Budget 2018: Narendra Modi government's last full Union Budget will give job seekers, agriculture sector and infrastructure big reasons to cheer! While standalone measures for job creation in Finance Minister Arun Jaitley's India Budget 2018 are being anticipated, the latter two areas - agriculture and infrastructure - will also indirectly help create a huge number of jobs.

Budget 2018: Job creation to find focus in Budget 2018 Budget 2018: Ahead of the Lok Sabha polls 2019 it makes sense for the government to look for avenues in Budget 2018 to alleviate agriculture sector stress and enable job creation.

Budget 2018: Narendra Modi government’s last full Union Budget will give job seekers, agriculture sector and infrastructure big reasons to cheer! While standalone measures for job creation in Finance Minister Arun Jaitley’s India Budget 2018 are being anticipated, the latter two areas – agriculture and infrastructure – will also indirectly help create a huge number of jobs. That’s a double bonanza for employment seekers. That’s the consensus that emerges in FinancialExpress.com’s pre-Budget 2018 survey on Union Budget 2018’s expected focus areas. The Narendra Modi government has faced criticism for agricultural distress situation and not being able to create enough jobs. Ahead of the Lok Sabha polls 2019, it, therefore, makes sense for the government to look for avenues in Budget 2018 to alleviate agriculture sector stress and enable job creation.

Budget 2018: Agriculture, infrastructure and job creation will grab limelight

Financial Express Digital surveyed 21 leading fund managers, sector experts and economists and listed out 10 possible themes that the Finance Minister Arun Jaitley would focus on: Agriculture/rural economy, infrastructure, housing, social welfare schemes, job creation, Make in India, trade, disinvestment, crackdown on black money and push for private investment. Agriculture, Infrastructure and job creation emerged the top-ranked areas of focus. A whopping 19 out of 21 experts expect the budgetary allocation to the agriculture sector to be significantly increased. As many as 18 out of 21 experts expect job creation to find special emphasis in Budget 2018, while the other three are not sure, but suggest measures to boost jobs nevertheless. Interestingly, the recently tabled Economic Survey 2018-2018, authored by CEA Arvind Subramanian, also stated that finding jobs for the “young and burgeoning workforce” of India will be a medium-term area of importance for the government.

Budget 2018: What will FM Jaitley focus on? Budget 2018: Financial Express Digital surveyed 21 leading fund managers, sector experts and economists and listed out 10 possible themes that the Finance Minister Arun Jaitley would focus on.

What Modi government can do for job seekers

Dharmakirti Joshi, Chief Economist at CRISIL believes that giving a big push to the construction sector will create jobs. “This, in turn, will push rural income up and also provide a buffer if monsoons are sub-normal,” Joshi says while responding to Financial Express Digital’s pre-Budget 2018 survey. For job creation, Bidisha Ganguly, Chief Economist at CII suggests, “Deductions are presently available for hiring additional workmen but various conditions attached make this impractical. Relaxation of conditions such as minimum establishment strength and percentage increase in hiring should be removed to make this provision more effective.”

Budget 2018: What FM Arun Jaitley can do for job seekers Budget 2018: As many as 18 out of 21 experts expect job creation to find special emphasis in Budget 2018, while the other three are not sure.

According to Jaideep Arora, CEO of Sharekhan, “For job creation, the government is expected to take concerted efforts on various fronts/areas. For example, it might make higher allocations for rural employment schemes and provide some sops for MSMEs.” “There could also be efforts to boost labour-intensive industries like textiles and garment manufacturing along with encouraging growth of the services sector,” he tells FE Online. Arora adds that easing rural stress and supporting MSMEs is important since it influences a large pool of working population. “At the same time, we do not expect the government to lower spending on infrastructure and affordable housing to support the economy,” he says.

Watch video: 10 expectations of common man from Budget 2018

Other areas that the Modi government can look to create jobs that are focused on low-cost labour. Sahil Kapoor, Chief Market Strategist, Edelweiss tells FE Online, “Measures can be focused on low-cost labour-intensive exports sectors like textiles, plastics, ready-made garments and leather industry.” Agrees Siddharth Khemka, Head- Retail Research, Motilal Oswal who is of the view that skill development and employment generating sectors like textiles will be key to pushing job creation. Dhirendra Kumar, CEO of Value Research sees an indirect boost for jobs in Budget 2018. “Budget 2018 will have indirect measures to boost job creation. For example, with public sector banks being recapitalised, resources have been freed up for businesses and this, in turn, will lead to job creation,” he says.

Relieving agricultural stress and boosting infrastructure

Greater budgetary allocation for agriculture in Union Budget 2018 would be important and necessary for the government to meet its promise of doubling farmers’ income, most experts in the survey echo. Sujan Hajra, Chief Economist at Anand Rathi says, “For over a decade, Indian agriculture is going through a phase of distress. With two-thirds of the population living in rural areas and half of the workforce directly linked to agriculture, this segment needs greater budgetary support.” Rusmik Oza, Head-midcaps at Kotak Securities sees a big push for the agricultural sector. “There are state elections in the end of this calendar year or the start of next calendar year. Going by the voting pattern of Gujarat state elections the government would have to give impetus to the rural economy. This year due to better production, prices of many agri products has fallen,” he tells FE Online.

Budget 2018: Budgetary allocation to agriculture by FM Jaitley Budget 2018: A whopping 19 out of 21 experts expect the budgetary allocation to the agriculture sector to be significantly increased.

Sachchidanand Shukla, Chief Economist at Mahindra Group advocates the case for using Budget 2018 to focus on qualitative spending on agriculture. “This includes targeting spending on market assurance scheme, MNREGA, eNAM, land leasing and contract farming,” he pitches. Agrees a senior economist at a leading financial company, ‘This (agriculture) is one section of our society which is squeezed by nature and middleman all the time. The government should invest lot more in agricultural infrastructure like storage etc, develop a mechanism so that the farmers are not at the mercy of middlemen and nature.” An economic policy advisor at a global firm – who does not wish to be named – suggests that the government come up with innovative schemes which are not fiscally expensive to boost agriculture. “There is need to incentivise private sector participation,” he says. Experts also expect higher allocation to MGNREGA since it meets the dual objectives of dealing with agricultural issues and providing jobs.

Also read: Budget 2018 income tax slabs expectations: FM may give relief, but, perhaps not much or for everyone

Infrastructure, the second highest ranked theme, is seen as the right sector for thrust in Budget 2018 with its multiplier effect on growth and also potential to, directly and indirectly, create jobs. For many experts housing as a part of infrastructure would also see some attention. Given that a large section of the economy is still dependent on agriculture and that for the common man one of the most important areas of concern is a job – the Narendra Modi government’s Budget 2018 would definitely cheer a majority of India if it manages to get its measures right on these fronts.

HomeBudget Union Budget 2018

HomeBudget Union Budget 2018: Small taxpayer got relief in past budgets, says FM Arun Jaitley

Union Budget 2018: Small taxpayer got relief in past budgets, says FM Arun Jaitley

Budget 2018: Finance Minister Arun Jaitley today defended not giving away major relief to middle class by saying the government has already done enough in the past Budget and will further provide succour in the future depending on fiscal space.

 The last full Budget of the present Narendra Modi government played big on its flagship healthcare coverage, which was later dubbed as 'ModiCare'Budget 2018: Replying on meeting disinvestment target, the finance minister said this year was significant as it touched the figure of Rs 1 lakh crore. (Twitter/ANI)

Budget 2018: Finance Minister Arun Jaitley today defended not giving away major relief to middle class by saying the government has already done enough in Budget 2017-18 and will further provide succour in the future depending on fiscal space. “India has a serious challenge in terms of compliances. India has a serious challenge in term of increasing the tax base and therefore if you analyse the sum total of my last 4-5 budgets that I have presented, systematically to the smaller taxpayer I have given relief almost in every Budget,” he said.

Citing various major announcements done in the past, he said, when the government came in the exemption limit was raised from Rs 2 lakh, additional exemption of Rs 50,000 on saving so Rs 1 lakh became Rs 1.5 lakh and another exemption Rs 50,000 for housing loan repayments raising it to Rs 2 lakh per year. For professionals like doctors, lawyer, he said, the government made taxation simple for those having income up to Rs 50 lakh.

Income tax Calculator: Calculate impact of Arun Jaitley’s Budget 2018 on your tax liability

For such category of small taxpayer, income tax was levied on the 50 per cent of their income and remaining 50 per cent were considered as expense under presumptive income scheme, he said at a post Budget 2018 event organised by Open magazine. With regard to traders with turnover of Rs 2 crore, he said 6 per cent was taken as presumptive income and tax was calculated on that portion only. Last year, the government reduced the tax on individual earning annual income up to 5 lakh from 10 per cent to 5 per cent lowest in the world, he said.

Watch: Tax Takeaways From Budget 2018 For The Common Man

Pointing out that revenues are required for building infrastructure, protecting border and social security, Jaitley said, “Today to reduce the tax base by saying the number of tax payers are being reduced, you don’t serve the larger national interest.” The government can serve national interest by ensuring that people come within the tax net but the smaller body given concessions in various ways so that they pay less, he said. “I gave a comparative chart, people in salary circle end up paying up more than those in business and therefore there is case for bringing back standard deduction … I am sure there would be an opportunity to expand it further itself,” he said.

On the crude oil prices having impact on fiscal maths, the Finance Minister said rising prices are a matter of concern but these are still within the comfort level of the government. “I think India has got out of high inflation era and the inflation target of 4 per cent plus minus 2 per cent is a reasonable figure and it is achievable,” he said. The recent spike in inflation is mainly due to rise in vegetable prices, crude oil prices and allowance given to central government employees, he said.

Asked if the government has put consolidation of public sector banks on the back burner, the Finance Minister said he was committed on the consolidation of banks and privatisation of IDBI Bank by reducing the government stake below 50 per cent promised in Budget 2017-18. “I stand by both these announcements and will happen at appropriate time once the financial health of the banks strengthen,” he said.

Replying on meeting disinvestment target, the finance minister said this year was significant as it touched the figure of Rs 1 lakh crore. “Rs 80,000 crore that I fixed for this year is fairly achievable (for 2018-19),” he said.