Budget 2022: Talking to Moneycontrol on the country’s economy, markets and the upcoming budget Deepak Jasani of HDFC Securities Said to be presented by the Finance Minister on 1st February 2022 Union Budget 2022 To support the growth, this time there may be an increase in public investment and investment on infra. Along with this, there may be allocation for PLI scheme to promote manufacturing.
He further said that in this budget, the situation will be more clear on the privatization of IDBI Bank and two other public sector banks. The government had also said on this that these disinvestments can happen in 2022.
In this conversation, Deepak Jasani further said that if the government gives a positive surprise on the financial data of the financial year 2023 and comes up with a practical plan on monetization of government assets along with disinvestment, then the stock market can get excited. Talking about the third quarter results, he said that most companies will see growth in earnings and profits during this period but margins will be under pressure due to rising metal and fuel prices.
The performance of the cyclical sector will be better in the third quarter. They will get the benefit of price hike while the results of IT companies may be as per estimates and in some cases even better than expected. Some of these companies may increase their guidance. Apart from this, the results of metal and oil and gas companies can also be good. While the results of some companies may also see pressure due to Omicron, a possible hike in interest rates to reduce liquidity could also show its impact.
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Talking on the upcoming budget, he has further said that healthcare and infra spending may see an increase in this budget. Apart from this, the government’s focus will also be on the inverted duty structure. Along with this, the focus of the Finance Minister will also be on preventing tax evasion. Apart from this, conditions are expected to become more clear on the functioning of National Asset Reconstruction Company Limited and National Bank of Financing Infrastructure and Development in this budget. In this budget, the budgetary allocation on housing schemes like Pradhan Mantri Awas Yojana may increase. Apart from this, trade, hotels, transport and communication have been hit hard by Corona, in view of which it is expected that these sectors can get special treatment in the budget.
Responding to the question whether to bet on these sectors before the budget, Deepak Jasani said that stocks related to agri, infra and construction related, capital goods, housing finance, retail, hospitality, textile and health care stocks are on our radar. Should stay on
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