Markets entering a pre-Budget rally: Anish Damania, IDFC Securities

In a chat with ET Now, Anish Damania, Head-Institutional Equities, IDFC Securities, shares his outlook for the market.

ET Now: What are you feeling about the market? It's just eight days away from the budget, and somehow we have scaled it back to 7600.

Anish Damania: Just like there was a pre-election rally, perhaps now is a pre-budget rally. Liquidity is immense. The QIPs, which are coming up, are getting oversubscribed a couple of times over. So, there is good participation on the equity raising front. That is a positive news.

As we go ahead, it looks like the bad news flow on Iraq has subsided with oil prices dipping a little bit. Talking of monsoons, there are expectations that July rains will recover. So, probably to some extent, there is an element of positive spin to that, although a lot of people are talking about drought-like conditions.

Having said that, we are going into a pre-budget rally. There are expectations about fiscal consolidation and about the "bitter pill" which is essential for reviving the economy.

People are betting on a recovery and I would guess that to a great extent, it can really happen. One needs to see how this budget articulates that, and at the same time, brings growth to the fore.