The Union Budget 2023 should optimise and improve the quality of expenditure by allocating more funds towards capex spending and manufacturing. Further to counter the slowdown, rural spending will see enhancement, albeit at a lower pace (marginal cut in subsidy bill), according to Kunal Valia of Waterfield Advisors.
Valuation of Indian equities is at a premium by its own historical average. So the chief investment officer (Listed Investments) thinks that investors will have to build a case for another year of modest returns and take advantage of days with high volatility to build a long-term portfolio.
In an interview to Moneycontrol, Valia shares that IT companies as a pack still trade at a premium valuation. However, bottom-up stock selection will be at play in 2023 as IT continues to be a growth sector with high-quality companies with negligible debt in the books, says the ace finance professional with more than 21 years spent in Indian capital markets during which he served companies like Credit Suisse and DSP Merrill Lynch.
Do you think the slowing global growth, sluggish domestic economic recovery and political considerations ahead of 2024 Union election will influence the budget math for FY24?