The government has hit 5 sixes in a row with this Budget: Shankar Sharma
The markets gave a thumbs up to the budget. In an interview with Business Standard, Vice-Chairman and Joint Managing Director at First Global, Shankar Sharma, shared his views on this year's budget
Puneet Wadhwa New Delhi
 "TMS")
First Global's Shankar Sharma
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
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First Published: Feb 02 2022 | 8:00 AM IST
