PSU banks, oil refining, Infrastructure EPC and energy are among the many key sectors to be careful for amid the present geopolitical and macroeconomic atmosphere, in keeping with Hemant Majethia, CEO & Co-Founding father of Ventura Securities. In an interview with Livemint, Majethia shares his insights on Price range 2025 expectations, market valuations, and funding alternatives amid current corrections.
Addressing issues over market sell-offs and FII outflows, Majethia stays optimistic about India’s macroeconomic outlook and advises traders on navigating mid and small-cap shares within the present state of affairs. Listed here are edited excerpts:
Q. What are your expectations from Price range 2025 from the market’s perspective?
A. Latest numbers level to sturdy tax buoyancy. Direct tax collections are anticipated to exceed estimates by ₹73,000 – 83,000 crore, GST revenues stay strong, and company advance tax funds are up 16%. This might end in a decrease fiscal deficit than focused — a major achievement.
If that occurs in Price range 2025, it creates scope for larger investments in infrastructure, defence, railways, and different nation-building actions. It might even give the federal government room to cut back private taxes to spice up consumption. Proposals like these might spark optimism out there.
Q. May a populist Price range exacerbate the on-going sell-off within the markets?
A. With elections simply behind us, there isn’t a motivation for ‘populist’ measures within the Union Price range 2025-2026. In actual fact, the federal government might undertake proposals that increase consumption and funding and that may truly curb sell-offs and produce stability to the market.
Q. Which sectors ought to traders be careful for forward of the Price range? Which sectors are you optimistic on?
A. PSU Banks declared sturdy outcomes, and with a price-to-book worth (PBV) of round 1, a re-rating appears imminent. Oil refining corporations may additionally achieve floor, with the US intent on reducing oil costs, as evidenced by Trump’s feedback. Infrastructure EPCs, notably in street building, are wanting promising. The facility sector, with important investments lined up, is one other area to look at.
Q. What are the important thing issues at present driving the market sell-off? When do you anticipate the market to stabilise?
A. Markets have been overheated and a sound correction was overdue. Mid and small caps, for instance, have been buying and selling at larger P/Es (Worth-to-Earnings ratios) than frontline Nifty 50 shares. The correction appears dramatic as a result of it’s so sharp. Now that it has occurred, hopefully the market will stabilize when it finds its footing.
Q. When do you suppose the FII might return to the Indian markets and the outflows will cease?
A. That’s anybody’s guess but when the federal government takes optimistic steps to boost consumption and funding, it might occur sooner reasonably than later.
Q. How do you see market valuations after the current correction? What technique would you suggest for investing in mid and small-cap shares?
A. Valuation is all the time a stock-specific metric. There is no such thing as a blanket technique for the general market and even for sectors and there’s no substitute for rigorous analysis earlier than investing or disinvesting.
With the correction, many mid and small-cap shares have dropped 25-40%, presenting engaging alternatives when their valuations are seen in mild of the Q3 outcomes; there’s scope for good pickings.
Q. How do you understand India’s macroeconomic outlook? Ought to traders undertake a cautious stance?
A. The primary superior estimates of GDP development for FY2024-25 at 6.4% are decrease than the spectacular 8% for FY2023-24 nevertheless it’s nonetheless a superb quantity. India is among the fastest-growing main economies, and continues to indicate resilience amidst world political turmoil and strategic tensions. So, well-informed fairness traders can discover shares with good potential within the Indian markets.
Q. What new initiatives is Ventura Securities endeavor to drive development and innovation?
A. We’re all the time on the lookout for methods to make our buyer expertise higher. In FY2023-24, we moved to scalable cloud infrastructure powered by AWS. This implies sooner trades, decrease latency, and round the clock catastrophe restoration.
Plying our prospects with dependable analysis and insights has additionally been on the core of our choices. So, we’ve doubled down on delivering high quality analysis, and SPOTLIGHT—our all-in-one investor assistant— helps our prospects to trace shares, keep on prime of market information, crunch numbers, and get monetary insights—multi functional place.
To drive these initiatives and take them ahead to the following stage, we’ve strengthened our tech crew over the previous two years, on-boarding ~50+ area consultants; they’re centered on bettering agility and high quality throughout our merchandise.
Learn Price range 2025 Expectations Reside Updates right here
Disclaimer: The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint. We advise traders to verify with licensed consultants earlier than making any funding choices.
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