PSU banks, oil refining, Infrastructure EPC and energy are among the many key sectors to be careful for amid the present geopolitical and macroeconomic surroundings, in line 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 considerations over market sell-offs and FII outflows, Majethia stays optimistic about India’s macroeconomic outlook and advises buyers on navigating mid and small-cap shares within the present situation. Listed below are edited excerpts:
Q. What are your expectations from Price range 2025 from the market’s perspective?
A. Current numbers level to robust 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 lead to a decrease fiscal deficit than focused — a major achievement.
If that occurs in Price range 2025, it creates scope for increased investments in infrastructure, defence, railways, and different nation-building actions. It may even give the federal government room to scale back private taxes to spice up consumption. Proposals like these may spark optimism available in the market.
Q. Might a populist Price range exacerbate the on-going sell-off within the markets?
A. With elections simply behind us, there is no such thing as a motivation for ‘populist’ measures within the Union Price range 2025-2026. Actually, the federal government may undertake proposals that increase consumption and funding and that may truly curb sell-offs and convey stability to the market.
Q. Which sectors ought to buyers be careful for forward of the Price range? Which sectors are you optimistic on?
A. PSU Banks declared robust outcomes, and with a price-to-book worth (PBV) of round 1, a re-rating appears imminent. Oil refining corporations may also acquire floor, with the US intent on decreasing oil costs, as evidenced by Trump’s feedback. Infrastructure EPCs, notably in highway building, are wanting promising. The facility sector, with vital investments lined up, is one other area to observe.
Q. What are the important thing considerations at the moment driving the market sell-off? When do you count on the market to stabilise?
A. Markets have been overheated and a legitimate correction was overdue. Mid and small caps, for instance, have been buying and selling at increased 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 assume the FII could 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 may occur sooner slightly 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 at all times a stock-specific metric. There isn’t 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 enticing alternatives when their valuations are seen in gentle of the Q3 outcomes; there’s scope for good pickings.
Q. How do you understand India’s macroeconomic outlook? Ought to buyers undertake a cautious stance?
A. The primary superior estimates of GDP progress for FY2024-25 at 6.4% are decrease than the spectacular 8% for FY2023-24 nevertheless it’s nonetheless quantity. India is among the fastest-growing main economies, and continues to point out resilience amidst international political turmoil and strategic tensions. So, well-informed fairness buyers can discover shares with good potential within the Indian markets.
Q. What new initiatives is Ventura Securities endeavor to drive progress and innovation?
A. We’re at all times in search of 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 clients 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 clients to trace shares, keep on high of market information, crunch numbers, and get monetary insights—multi functional place.
To drive these initiatives and take them ahead to the subsequent degree, we’ve strengthened our tech workforce 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 Dwell Updates right here
Disclaimer: The views and suggestions made above are these of particular person analysts or broking corporations, and never of Mint. We advise buyers to examine with licensed consultants earlier than making any funding selections.
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