In an interview with CNBC-TV18, Sridhar Sivaram, Investment Director of Enam Holdings gave his take on Arun Jaitley's Union Budget 2018 and his outlook on the road ahead.
Budget 2018 numbers look okay but the fact is that the macros for India have deteriorated significantly over the last two years, he said.
The bond market is more sensitive to these than the equity markets, he added.
On long-term capital gains (LTCG) tax, he said that this was very much on the cards. I think the government don’t want to leave any income tax-free because they think that there is a lot of possibility of certain transactions which are not fair.
From foreign institutional investor (FII) standpoint, it does increase the extent of paperwork and the entire process of compliance goes up, so to that extent it is a hassle. I don’t see this as a major issue, said Sivaram.
Indian market falling will probably coincide with what happens to the global market. I don’t see Indian market on an isolation going down or going in a different direction, he further mentioned.
We like the domestic space, commercial vehicle (CV) space, consumer discretionary and also financials. We think that the domestic space is looking much better because we are expecting growth to pick up, he said.
According to him, once the dust settles down on all the Budget and other things, the market will start appreciating some of the changes that are happening on the ground and the growth coming back.
For full interview, watch accompanying video...
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