Budget 2024: Manufacturing, energy, pharma to be in focus this time, says Mahavir Lunawat of Pantomath | Mint
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Business News/ Markets / Stock Markets/  Budget 2024: Manufacturing, energy, pharma to be in focus this time, says Mahavir Lunawat of Pantomath
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Budget 2024: Manufacturing, energy, pharma to be in focus this time, says Mahavir Lunawat of Pantomath

Mahavir Lunawat, Managing Director, Pantomath Capital Advisors, expects domestic manufacturing, energy, healthcare, pharma and technology to be in focus this Budget. These would help sustain the economic growth in the coming years, he added.

Mahavir Lunawat, Managing Director, Pantomath Capital AdvisorsPremium
Mahavir Lunawat, Managing Director, Pantomath Capital Advisors

Mahavir Lunawat, Managing Director, Pantomath Capital Advisors, expects domestic manufacturing, energy, healthcare, pharma and technology to be in focus in this Budget. These would help sustain the economic growth in the coming years, he added. 

In an interview with MintGenie, he also forecasted that the IPO momentum will continue in 2024. Considering the valuation multiples prevailing in the secondary market currently, new stocks at attractive price points find huge demand in the primary market, he said. 

Edited Excerpts:

What are your expectations from Budget 2024?

This budget is anticipated to have a strong emphasis on long-term development while attempting to fortify the financial system. Domestic manufacturing, energy, healthcare, pharma, and technology will be in focus which would help sustain the economic growth in the coming years. Besides, key sectors such as semiconductors, key materials, mass manufacturing, telecom, etc. are expected to receive policy push.

Do you expect momentum to continue in the IPO market in 2024?

Coming out of the pandemic uncertainties, the year 2023 witnessed an uptick in IPO activities which is primarily attributed to the eagerness of companies to tap into capital markets, coupled with robust economic activity and positive sentiments from domestic investors. In our view, this momentum is likely to continue well into 2024 as well.

Post Covid, global geo-political issues have furthered India's stands as a favoured nation with unprecedented opportunities and now more companies are looking to capitalise on their balance sheet.

Should investors buy newly-launched issues or avoid them due to the volatile market environment?

Investors must make their investment decisions based on fundamentals of the stock that may be affected by short-term current market conditions but over a period typically fetch a good return. If new stocks are offered with value arbitrage, investors should typically look at IPO investing. Considering the valuation multiples prevailing in the secondary market currently, new stocks at attractive price points find huge demand in the primary market.

Most IPOs have given strong listings this year. Why is that?

Newly debuted IPOs have given bumper listings this year as there is high liquidity in the market leading to the participation of investors having a huge appetite. The large universe of fast-growing, well-managed companies is expected to deliver good profits.

There were not many mega issues, yet investors got better rewards. What combination of things has contributed to this besides strong listing performance?

Strong Market Sentiment: A bullish market sentiment often leads to higher demand for IPO shares. Investors may be more willing to buy shares in new companies when they are optimistic about the overall market.

Company Performance: If the IPO company has a strong track record of revenue and profit growth, it can attract more investors. Companies with a compelling business model and growth potential are more likely to generate listing gains.

IPOs are available at discounted multiples compared to their industry averages attracting investors to apply for the same.

Retail applications were way above the total IPO mobilisation. What triggered this?

The increased financial literacy, awareness and the growing popularity of trading among youth have been some of the major factors contributing to the rise in retail participation. Also, an increased number of demat accounts and a record number of 3 million new demat accounts were opened in July 2023, indicating the growing retail participation in the stock market.

One piece of advice for new investors?

Investors should invest based on their risk appetite and analyse fundamentals. Investors must read offer documents carefully, and consult with their investment advisors before applying for any IPO.

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Published: 05 Dec 2023, 02:44 PM IST
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