Sentiment up, market can rally pre-Budget: PN Vijay

PN Vijay, portfolio manager at pnvijay.com spoke to CNBC-TV18 about where the market is headed in anticipation of the upcoming Union Budget. Check out his comments.

Q: Does it look like despite all the political talk around us, we might still put in a pre-Budget rally?
A: Looks like we are into something. Last week around this time, one was feeling rather nervous whether the rally had got stymied when the index briefly went below 5,200, then we got back into shape and right now, I think the sudden CRR cut also helped the sentiment. Yes, there is no great exuberance, but there is fair amount of optimism about the market going forward to some extent because of the CRR cut. There is even talk of a rate cut in the policy. I think one is getting the sense that the middle-class will have a lot to smile about in the Budget, especially out of the parliamentary committee which went out so strongly asking for increase in the exemption limit to 3 lakh and the limits for savings in all ways to be increased to 3-4 lakh and getting bank deposits the benefit which is now available for dividend. All that is floating around, and I think the government may like to get the articulate middle-class on its side with these things and probably compensate it by socking it to the corporate sector. Q: Global liquidity has been very supportive as well. In terms of upside, how much upside would you say is present for the market, can we go back to targeting 5,600, do you think it maybe a stronger move this month?
A: If this budget is decent, if it doesn