No doubt Mahindra and Mahindra is a good stock but at times govt policies are such that it puts a question mark on the profitability of the company.
Why we are saying so to avoid M&M before budget because market is buzz with noises related to a higher tax on diesel vehicles and biggest hit in such a case will be taken by M&M in case it gets fructified.
Moreover, the move to reduce diesel under-recoveries by regularly hiking the retail price of diesel would also affect sentiments for M&M due to the company’s dependence on the diesel-powered portfolio of automobiles.
Thus now is the time to take your foot off the pedal and keep purchase decision related to M&M pending till the time you are sure that budget guidelines are not going to impact the M&M fortunes. Till that time trade intraday with Jackpot tip of the day and make money on daily basis.