Watch the interview of SP Tulsian of sptulsian.com with Anuj Singhal, Latha Venkatesh & Sonia Shenoy on CNBC-TV18, in which he shared his readings and outlook on fundamentals of market and specific stocks.
Below is the verbatim transcript of the interview.
Latha: What would you tank up at all ahead of the Budget? Everyone is taking about the farm focus will you buy that idea or will you just go on and pick good stocks?
A: I will focus on three things first maybe the same order. Firstly, on the fiscal deficit and this is what my feeling is that he is likely to stick to 3.2 for this year that is FY18 the year which we have been passing through and 3 percent for FY19. Believe me if that comes in that will be seen extremely positive and foreign institutional investors (FIIs) will just come and lap who have seen a continuous buyer.
Second would be probably my pecking order will be the divestment target and I won’t be surprised to see the divestment target been set at Rs 1.2 lakh crore because the reason being I see three or four strategic sale seen happening. One will be in the Air India, second will be in the Hindustan Zinc, third one would be Dredging Corporation and fourth would be BEML. I am not saying that BEML and Dredging Corporation will give much quantum to the government but Hindustan Zinc can give them a valuation of about or maybe a kitty of about Rs 35,000 crore. If Air India any roadmap is given that will be not in the Budget speech but maybe in the commentary going on the analysis breakup of the direct sale, strategic sale kind of thing that will be seen extremely positive that government is firm on reforms.
Third I would put it on the long term capital gains (LTCG) the kind of hype which we have seen in building up or maybe the fear. Firstly, people seen talking of extending the period to three years which I don’t see any reason when the land and building and all the period has been reduced to two years and secondly when you have been, the market has been so kind with the government for meeting their divestment target beyond or maybe above more than Rs 20,000 crore I don’t think that any tinkering will come in and if that comes in that will be just lapped up by the domestic institutional investors (DIIs) and the local investors, so these are the three points.
Since you have asked on the farm and agriculture, I think this is very much required because if you really take a call on the State Government and the Central Government, they have not been able to keep their commitment of even minimum support price (MSP) and that has been really creating a big problem for the farmers. I think that in fact Budget needs to focus on that and it is not that it should be seen as a populist thing. So overall even if the farm focused Budget is seen that will be seen quite positive and I don’t think that market will take that has negative.
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