All eyes are on the Budget now. After the Economic Survey made a push for driving growth via deregulation, the question is what’s the market’s wishlist from the Budget. Given the FII selling spree continuing in January, the market is looking at the Budget for the potential triggers. Nilesh Shah – MD, Kotak Mahindra AMC lists out his wishlist anf also his take on the FII selling-
When do you expect the FII selling spree to stop?
It is difficult to say when will FPI selling stop as it is a relative valuation game. We can’t control what others are doing. We must focus on what is in our hands to attract global investors. We must aim for double digit GDP growth by encouraging entrepreneurship/ ending Inspector Raj. We must lower risk premium demanded by Investors through Rule of Law i.e. Timely delivery of justice.
Also Read4 reasons FIIs sold stocks worth over Rs 87,000 crores in January… What are the key expectations from Budget
The markets are expecting Budget to provide Triveni Sangam of fiscal prudence, growth orientation through higher capex allocation and boost for consumption and raising of resources through non-tax revenues like divestment, exit tax and gold monetization scheme.
Also Read Is the share market open on February 1 for trading on Budget Day SEBI rejects plea of Danny Gaekwad for Religare open offer Ketan Parekh: Dark side of markets The future of algo trading Also ReadThese 2 companies just saw a huge jump in FII holding How do you see earnings panning out?
The Corporate India must aim for double digit earnings growth through cost efficiency and economies of scale. Our Corporate Governance standards should maintain their lead over the peers.
We must engage with the Global Indices to ensure that we are fairly represented.
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