The possibility of some fiscal slippage is high considering that tax revenue collections have been below Budget estimates
India is still a stock picker’s market and there is scope for active management, and for fund managers to deliver alpha over the long term. says Sampath Reddy.
The overall tone of the policy was a bit dovish, with inflation forecasts being cut substantially. The bond markets reacted positively, and the 10-year yield closed at 7.44 percent.
With gold losing sheen and real estate prices cooling off, we believe Indian households will prefer financial products for savings.
Finance minister shall be walking a tight rope to manage the fiscal austerity path. Though the chances of a slippage from the FRBM path are high, owing to 7th pay commission payouts, but these would to a certain extent get offset by higher revenues.
A carefully-picked portfolio of equity investments is a good option. Also, tax free bonds offer attractive long term returns for investors in the high tax bracket, says Sampath Reddy.
Sampath Reddy of Bajaj Allianz Life Insurance Co feels that there is still good amount of steam left in most of the IT services companies.
Sampath Reddy of Bajaj Allianz Life Insurance Co prefers private sector banks.