Veteran market investors are reposing faith on a growth-oriented agenda that the government is likely to follow, both in the Union Budget and outside it, which will boost investment, reduce fiscal deficit and encourage consumption.
A panel of top money managers shared their views on CNBC-TV18 earlier on July 23, here's a quick summary for the key comments:
Nilesh Shah, Envision
This government is advantageously place in terms of revenue at disposal, and we can expect infrastructure and consumption side of the economy to be the likely focus this Budget.
Private capex triggers are in place, but what is lacking is animal spirit, which has to come from outside the Budget.
The two-wheeler space seems to be showing a growth momentum, and can be seen as a proxy for higher end consumption. Housing finance too seems to be good pocket to place your bets.
Prashant Jain, 3P India Equity Fund
This is a time for the market to tone down expectations, as the big catch up of corporate profitability is behind us, going forward we may see low-teen (12-14%) kind of earnings growth in the near term.
The government needs to be doing more of what it has been doing. Private capex will go up but it will take time, however, we are in the right direction.
We have been a buyer on private banks, capex and discretionary consumption and IT. The electronics sector needs a stronger eco-system.
Stability in taxation will be welcome, and the outlook seems great. There is enough fiscal room to not disturb the consolidation path.
Ridham Desai, Morgan Stanley
Large private banks are looking attractive and the market may not have priced in the upside entirely. The IT space could also see some gains driven by the AI theme. We like Auto and Auto Ancillaries with in consumption, and also the Retail space. Govt must also offer support to key sectors like defence, and manufacturing-oriented themes. We have the setup in place to encourage private capex and cycle has started, it should gain momentum.
Nilesh Shah, Kotak AMC
This Budget has to achieve the trinity of impossible - fiscal prudence, infrastructure investment and consumption boost. The budget has to be like Surya Kumar Yadav's catch in the T20 WC final.
Disclaimer: The views and investment tips expressed by 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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