Watch out for fiscal deficit, sops in budget: Religare Cap

Pumped up by a 2-day rally, Indian markets are once again looking attractive to investors and experts. All eyes are waiting to see how much the markets can move ahead in the run up to the budget given the kind of damage it has witnessed in the start of the year.

Manoj Singla of Religare Capital is bullish on the markets as he feels growth will sustain through the year and consumption continue to be robust. In an interview to CNBC-TV18, Singla said that fiscal deficit and subsidies will be key factors to watch out in the budget. Going forward, Singla is expecting inflation to ease and credit growth to pick up. Continuing optimistic outlook, he said that no meaningful cut is expected in FY11 earnings. His top pick is Maruti among the auto stocks and also finds Mahindra and Mahindra attractive post correction. SBI, Axis Bank and HDFC Bank are Singla