Balancing Budget 2013-14 is going to be challenging: Sudhakar Ramasubramanian
Ankit Doshi: Feb 28 2013, 09:06 IST
to change, unless we do things badly. Otherwise money is available all over the world and “risk on” is very much there. We continue to look at FMCG, banking especially private banks, and pharmaceutical as top-down sectoral stories. We would like to add on to other sectors like infrastructure and capital goods, but we want to see how certain policy actions pan out. We also believe in the bottoms-up approach of stock picking at this point in time because of valuations advantage.
But are valuations a cause for concern?
From the valuations point of view, Indian markets are trading around 14-15x one-year forward earnings. We do not see a big valuation upside but we do see a big earnings upside. For the latter to happen and for us to see 20-25% increase in equity markets, we need policy changes and we hope these policy changes happen in the budget. We believe, the FM has enough levers in his hands to make adjustments. If we do have a good budget, we foresee Indian equity markets as the best asset class to invest in this year.
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