Union Budget 2017 was overall a good one, with Finance Minister Arun Jaitley sticking to the path of fiscal consolidation, offering tax cuts and easing FDI rules, Geoffrey Dennis, Global Emerging Markets Strategist, UBS Investment Bank, says.
In an interview with CNBC-TV18, Dennis said that the Nifty was fairly valued at about 16.5 times next year earnings but added that if the demonetisation-induced slowdown eases and India goes back to 8 percent growth next year, the market looks "interesting" to foreign investors.
He is pencilling in two rate cuts, this month and in April.
The house likes private sector banks, industrial names and consumer names, Dennis said.
Talking about problems faced by the IT sector due to Trump's policies, he said that though valuations of some IT names are attractive now, value investors would prefer to look elsewhere in markets like Taiwan, Russia, Korea etc.
For full interview, watch video.