Q1: Has the government batted on the front foot and hit a six as regards the Budget proposals or are they still playing a test match?
Ans:
- The government his hit 5 sixes in a row with this Budget
- Good work of the last few years continues
- Global and domestic macros challenging, but the Budget has delivered
Q2: What is the one defining characteristic, according to you, that makes this Budget stand out compared to the ones presented over the last few years?
Ans:
- New-age companies in focus: Drones, EVs, organic farming, 5G equipment, artificial intelligence, optical fibre
- Sectors already on my ‘buy’ list
- Maximum bang for the buck
- Sharpened focus on the ‘new India’
- India as a tech powerhouse instead of service economy
Q3: Start-ups also found a mention in the budget. Do you see more companies with vague revenue outlook approach primary markets at obnoxious valuation over the next few months?
Ans:
- New listings: Some damage already done to the Indian startup ecosystem
- Buyer’s beware - Investors need to be careful
- New-age listings to take a backseat
Q4: As regards taxes, long-term capital gains for all assets have been capped at 15 per cent. RBI also plans to introduce a digital rupee. Budget also proposed taxing digital assets/ cryptos. How are you reading into this? Will it trigger a shift from digital assets to equities?
Ans:
- Equity market will continue to get domestic retail inflows
- Too early to assume a shift from cryptos into equities/ bonds
- Tax on cryptos is par for the course
Q5: How will you, as a fund manager, approach the equity markets in the backdrop of the budget proposals?
Ans:
- >Not buying large-caps: Banks, FMCG, oil and gas etc
- >IT sector still holds promise
- >India remains a great small-cap market, but choose wisely
Watch video
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU