"Keeping the upcoming year in mind, our top picks remain the banking, IT, infrastructure, and FMCG industries," Amit Jain, Co-Founder of Ashika Global Family Office Services, told Moneycontrol.
In comparison with global markets, he feels the Nifty appears to be fairly valued at current levels. Hence, in the short term, this will be a stock picker’s market, says Jain, who has more than 18 years’ experience in the Indian banking & financial services industry.
Assuming global factors are constant, Jain says he is cautiously optimistic that the Nifty will reach 19,000 by the middle of the current calendar year. And it's likely that the infrastructure, IT, and banking sectors will drive this rally, he said.
What is your rating on the budget on a scale of 1-10, and why?
This is by far the best budget I have seen in the last four budgets by Finance Minister Nirmala Sitharaman. In this budget, she has covered all sectors of society, including the middle class, which actually drives consumption in the Indian economy. From a personal grading point of view, I can give this budget an overall score of 9 out of 10.
What are your top bets after the budget, ahead of general elections?
Keeping the upcoming year in mind, our top picks remain the banking, IT, infrastructure, and FMCG industries. In comparison with global markets, the Nifty appears to be fairly valued at current levels. Hence, in the short term this will be a stock picker’s market.
Do you think the Nifty50 is ready to hit 19,000 in the coming weeks?
I mentioned the banking industry as an entrance point in my last interview with you on July 1, 2022, and since then, nearly all banks have provided a return of approximately 20-80 percent. Now, assuming global factors as constant, I’m cautiously optimistic that the Nifty will reach 19,000 by the middle of the current calendar year. And it's likely that the infrastructure, IT, and banking sectors will take the lead in this rally.
The agricultural credit target will be increased to Rs 20 lakh crore for FY24, any thoughts?
Given that it represents an increase of 11 percent over the previous fiscal budget, this is undoubtedly good news for the vast majority of people who depend on agriculture for their living. Nearly 60 percent of the population in India today still relies on agriculture for a living.
From a stock market perspective, this will have a ripple effect on discretionary spending and may have a positive impact on the FMCG sector.
The government’s capital investment outlay has increased by a massive 33 percent to Rs 10 lakh crore. Your thoughts?
The government's huge increase in overall capital expenditure during an election year will result in a long-term impact on infrastructure and the capital goods industry. And, it will draw additional FDI since the government appears very serious about improving both the nation's physical and digital infrastructure.
Any thoughts on the divestment target of Rs 61,000 crore? Is it achievable?
The government's aim to divest Rs 65,000 crore in FY23 was lowered to Rs 51,000 crore during the budget address, and it now appears doable, given that they have already raised Rs 31,000 crore so far, primarily through the LIC IPO.
The divestment target of Rs 61,000 crore for FY24 appears reasonable with the given divestment pipeline, including IDBI Bank and other significant PSUs.
The nominal GDP growth target is at 10.5 percent for FY24. Your thoughts?
It appears that our honourable finance minister is using Infosys’ growth forecasts as a guide; they underset their targets but end up with greater performance. This prediction of 10.5 percent of nominal GDP growth rate appears to be relatively attainable because, in my opinion, the nominal GDP rate should be above 11 percent for FY24.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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