Union Budget 2023: Sagar Lele, WealthBasket Curator Founder of Rupeeting, is also positive on the cement space and says the sector has enough tailwinds to outperform in 2023 Budget 2023: Sagar Lele, WealthBasket Curator Founder of Rupeeting, is also positive on the cement space and says the sector has enough tailwinds to outperform in 2023
The growth of rail infrastructure will be multi-fold with not just government but also private participation. Railways are set to roll.
Varun Lohchab of HDFC Securities expects that the markets to respond favourably if the status quo is upheld for LTCG (long term capital gains).
Prashant Pimple of Baroda BNP Paribas Mutual Fund expects FY23 to stick to approximately 6.4 percent FD/GDP in line with last year#39;s budget and FY24BE to target fiscal deficit of around 6 percent of GDP, on path of fiscal consolidation.
The divestment program of the country has gone too slow in the last 8 years and focus on the divestment and deployment of funds into infrastructure creating jobs should be the sole focus at this stage.
Anand Rathi of Anand Rathi Group anticipates the budget to place a significant emphasis on boosting rural consumption.
Fiscal consolidation, policy reforms and higher capital expenditure to support growth are likely to be high on the finance minister’s agenda, says the Chief Investment Officer-Equities. "Budget 2023 should ideally further that exercise in bringing industry friendly policies that can bolster overall Economic growth."
The government may increase allocations for capital expenditure, production-linked incentive schemes and MNGREGA while providing tax relief to the middle class, says Gaurav Dua of Sharekhan by BNP Paribas.
Budget 2023 Expectations: Achieving the balance between fiscal prudence and supporting long-term growth and investments in the economy should be the priority of the Finance Minister, said Tejas. "Achieving the balance between fiscal prudence and supporting long-term growth and investments in the economy should be the priority of the Finance Minister"
Budget 2023: Since salaried employees are an important source of revenue and this is the last budget before elections, the finance minister may provide relief to the middle-class, feels Anil Rego of Right Horizons. Budget 2023: Since salaried employees are an important source of revenue and this is the last budget before elections, the finance minister may provide relief to the middle-class, feels Anil Rego of Right Horizons.
Indian manufacturing exports are likely to grow at a fast pace over the next 3-5 years and beyond. Indian manufacturing exports are likely to grow at a fast pace over the next 3-5 years and beyond.
Research Ranking’s Chief Investment Officer Jaspreet Singh Arora expects the Union Budget to announce measures to boost rural demand and thinks road, rail and defence sectors will benefit from the government#39;s spending push Research Ranking’s Chief Investment Officer Jaspreet Singh Arora expects the Union Budget to announce measures to boost rural demand and thinks road, rail and defence sectors will benefit from the government#39;s spending push
Indian markets will continue to outperform the global market going forward. Therefore, this is the ideal time to act aggressively rather than waiting for a correction. Indian markets will continue to outperform the global market going forward. Therefore, this is the ideal time to act aggressively rather than waiting for a correction.
"The impact of the budget has weakened over the years. There may be some short-term effects from CGT changes, but we do not expect any significant change in the trajectory of the markets after the budget," said Seshadri Sen of Alchemy Capital Management,
Sectorally with expectations of the FY24 Budget to remain capex-oriented, industrial and infrastructure should remain in focus. Power, railways, shipping, defence and roads remain favourable sectors.
"The impact of the budget has weakened over the years. There may be some short-term effects from CGT changes, but we do not expect any significant change in the trajectory of the markets after the budget," said Seshadri Sen of Alchemy Capital Management,
Investors will have to build a case for another year of modest returns and take advantage of days with high volatility to build a long-term portfolio.
The Union Budget FY24 is likely to be on similar lines like the previous budgets of this government where there will be a focus on capital expenditure. The market will also expect the government to provide clarity on the fiscal consolidation path.
For the Mutual Fund house, fiscal consolidation is an important theme for Budget 2023. It, however, expects limited change in direct taxes in the Union Budget.
Budget 2023 is likely to focus on capital expenditure as a growth driver and give an impetus to manufacturing while continuing with the post-pandemic fiscal consolidation.
"We expect this to be a regular pre-election budget where the focus will be on manufacturing and spending for the masses. The capex and growth narrative underlined in the previous budget will roll over the ink towards this budget," said Divam Sharma of Green Portfolio
Clearly, the focus for budget 2023 will be to stimulate and give the economy a push, considering what we have been through since the last budget in 2022.
Events of recent years have posed severe challenges to the global economy. But it has opened up new investment opportunities as well
Being the last major budget before the central elections in 2024, the Government might prefer to increase spends on rural infrastructure which could have a multiplier effect on the economy.
Q3FY23 is likely to be flat with many firms still passing on the input price rise from earlier quarters. Over the next two quarters, corporate margins may bottom out and see improvement which could support earnings.
Motilal Oswal Financial Services chairman says corporate earnings will have to justify equity valuations and a 15-17 per cent bump in earnings will activate the bulls.
Motilal Oswal Financial Services#39; Chairman Raamdeo Agrawal#39;s comments dovetail with concerns relating to Mamaearth’s valuations. The digital-led beauty and personal care company was the first unicorn of 2022 and filed for listing at the end of the year
Banking is in a sweet spot with good credit growth and lower NPAs (non-performing assets). Thus, with some challenges that will appear in the second half of the year, banking will continue to remain in a sweet spot.
Railway capex will continue to be a big theme for the foreseeable future, as there has been several years of under investment.
A value investor, Aniruddha Sarkar does not believe in index-hugging when it comes to sectoral allocations, and sees promise in the consumer and banking sectors.
IT Pharma both the export-oriented sectors are likely to provide good investment opportunity in second half of 2023.
Sentiment, liquidity fundamentals together will ensure India outperform at least some global peers if not all.
The Indian economy is relatively better placed than peers and advanced economies. In the near term, returns maybe moderate in India due to relatively higher valuations, global growth slowdown (or even recession) and some domestic slowdown as well. The Indian economy is relatively better placed than peers and advanced economies. In the near term, returns maybe moderate in India due to relatively higher valuations, global growth slowdown (or even recession) and some domestic slowdown as well.
Bank Nifty also closed with a drop of over a percent led by selling in PSU Banking names. The index witnessed a false breakout on the upside early in the day but bears hammered it back lower.
As deposit rates fully reflect the rise in yields, UBS Securities India expects households to further move away from risky equities into fixed deposits.
Madanagopal Ramu of Sundaram Alternate Assets expects indices to be under pressure in H1 2023, but expects a recovery in H2.
Given the fact that we are in the midst of a Quantitative Tightening cycle, it’s difficult to imagine expansion in valuations. Even at long term average valuations, markets may show decent upside potential in 2023, while superior stock selection can lead to even better returns.
Arvind Kothari says manufacturing, infra, green energy, and consumption are some of the top sectors around which he’s built his portfolio.
