Budget 2013: Keep a watch on oil prices: Prashant Jain

In an interview to CNBC-TV18, Prashant Jain, ED & CIO of HDFC AMC shared his reading and outlook on market and Union Budget 2013.

Below is a verbatim transcript: Q: Retail participation that's been the sad point we have been discussing for the last many quarters. Do you think the Budget can change something on that front because there is expectation that the Rajiv Gandhi Scheme might be spread out and some tweaks might come in taxation? Do you think the Budget can make a difference to retail sentiment? A: An attempt can definitely be made, but in my experience unfortunately bulk of the money has always come in at higher multiples when the sentiment is positive and when the past returns are looking good and I don't think that is likely to change materially this time around. Q: You guys have started looking at oil and gas more carefully especially after the changes that were announced in terms of fuel pricing. Do you think that is going to get addressed either in terms of a higher import duty on crude? There are some whispers about FM announcing a kerosene price hike or an LPG price hike within this document itself. How are you approaching oil and gas now?
A: I think bulk of the reforms on oil have been done. We now just need to carry that process through in terms of implementing what has been done.
This graded diesel price hike was extremely important and now the key is how long you carry on with that process. So, any hikes on LPG or kerosene if it is done, it is good, but the big part of the oil reforms are probably out. Now, what is more important is how do oil prices behave and how long this process of diesel price hike is continued.