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Business News/ Budget / Budget Expectations/  Major announcements in the upcoming Budget unlikely; India on the cusp of huge growth, says Sandeep Raina of Nuvama
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Major announcements in the upcoming Budget unlikely; India on the cusp of huge growth, says Sandeep Raina of Nuvama

Sandeep Raina, EVP-Research at Nuvama Professional Clients Group believes no significant changes expected in Budget before General Election, but pro-investment Budget may be announced after elections.

Sandeep Raina, Executive Vice President- Research at Nuvama Professional Clients Group (Nuvama Professional Clients Group)Premium
Sandeep Raina, Executive Vice President- Research at Nuvama Professional Clients Group (Nuvama Professional Clients Group)

Sandeep Raina, Executive Vice President- Research at Nuvama Professional Clients Group believes there will be no significant changes in the upcoming Budget before the General Election. However, after the elections, the government may announce a pro-investment Budget. In an interview with Mint, Raina shared his views on markets and the Indian economy. Edited excerpts:

What will the market look for in Budget 2024?

The market is looking good irrespective of the Budget and the current scenario is conducive for the market. 

Various factors like strong corporate earnings, investment from both the government and private players and the recent somewhat dovish stance of the Fed are contributing to the positive outlook for the market. The current environment across the world is looking strong.

What are your expectations for Budget 2024? Can it be a populist Budget ahead of General Elections?

As we approach the upcoming election, significant changes in the upcoming Budget are unlikely. However, following the election and the formation of the new government, we anticipate the introduction of a pro-investment Budget, consistent with the trend observed in recent years.

What is your view on market performance in 2023? How is the road ahead for the next year?

2023 was a very interesting year. The market commenced on weak ground, experiencing a 7 per cent decline until March, with midcaps facing a steep decline. 

However, by the end of March, the market picked up, surging by 26 per cent from its lowest point. Several stocks have achieved multibagger status this year. 

Despite witnessing occasional minor corrections throughout the year, there were still profitable opportunities across the board.

Also Read: Budget 2024: Hope govt addresses inflation by considering tax reductions, say co-founders of Goela School of Finance

What sectors can lead the rally in 2024? Is there more steam left in PSU and the defence sector?

In 2023, I expect infra (defence, railways, capital goods, roads) and banks to perform well. Even PSU and defence would participate in the markets. 

The implementation of various schemes like PLI and government investments contributes to overall economic growth, fostering a favourable market environment. 

Additionally, a new segment has come - the SME - and there are many stocks which are growing at 20 per cent with an ROCE (return on capital employed) of 20 per cent. 

These stocks are available at reasonable prices, presenting a good opportunity in this segment. 

I am positive about the markets and I think we should look at a valuation based on a $5 trillion and $7 trillion economy where we would see many new sectors and companies emerging and the PSU sector would play a big role in the same.

Also Read: Nifty Bank outperforms benchmark in December: A look at outlook going ahead and top picks by analysts

The number of domestic investors see a sharp jump in 2023. What does it mean for the market?

The overall investment of domestic investors in the Indian market is a very positive and welcome change that is happening in India. 

The increase in depth and breadth of the investors in the market would lead to more stability in the market. 

I think this would further increase as we are still lower than most of the developed nations and eventually, we will move more towards higher investment by the general public. 

As a country, we still invest more money in banks and post-office which would move towards equities.

Also Read: Nifty 50 up 18% year-to-date, gains 9% in last two months; what should be your equity strategy? Here's what experts say

What is your outlook on domestic growth and inflation in 2024? When can we expect rate cuts next year?

India never had any issues concerning growth and inflation. Our central bank and government have been very prudent in terms of managing these things. I think we are at the cusp of huge growth going forward. 

I don’t see any reason why we will not grow above 7 per cent for the next few years and why we would not be a $5 trillion and eventually $7 trillion and $10 trillion economy. I think we may see a rate cut in the second half of 2024.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 19 Dec 2023, 03:11 PM IST
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