Amit Jain of Ashika Group had a lengthy conversation with moneycontrol on the future direction of the market and the upcoming budget. In this conversation, he said that the Union Budget for the financial year 2023, coming on February 1, may focus on targets like increasing demand, increasing employment, increasing the economy on the path of growth by more than 9 percent. In this interview to Moneycontrol, he said that in the upcoming budget, the MSME sector may see tax relief on the basis of different GST slabs.
Amit Jain, who has 18 years of experience in the banking and financial sector, says that the IT sector will continue to outperform the broader market. IT companies will benefit from the focus on digitization across the world.
Talking about the future condition and direction of the market, he further said that the calendar year 2022 will be the year of consolidation. If you look at the market from March 2020 to November 2021, the Nifty has gained 230 per cent during this period. Which is a great performance on any scale.
If you compare with the top 10 market in the world, then India is leading since March 2020. So, even if the market falls by 10 per cent, it is not a cause for concern, while this healthy correction will prepare the market for a durable bull run in the long term. It is very likely that this correction in the market will be visible further in the first half of 2022. However, going forward, the Indian budget and financial projections will be seen showing their effect on the market.
Talking on the market itself, he further said that we will see a boom in the IT sector going forward. Apart from this, he is of the opinion on Metals, Chemicals, Manufacturing and Retailing sector for 2022 that these stocks have shown good growth in 2021, now in 2022 they may see some time correction. Some undervalued sectors may be seen leading in 2022.
He further said that in the calendar year 2022, Banking, Automobile, Healthcare & Infrastructure can be seen leading the broader market. Apart from this, select PSU stocks can also perform well. He also said that after the IPO of LIC in 2022, we may see news of disinvestment in some more PSU companies.
When Amit Jain was asked that if a 25-30 year old investor wants to invest Rs 10 lakh, what should be his investment strategy? Responding to this question, he said that at this time investors should invest in those equity mutual fund schemes which have more weightage in banking, infrastructure, healthcare and automobile sectors. In the next 3-5 years, this scheme will perform better than other schemes. Investors with low risk appetite would be advised to invest in gold instead of debt mutual funds.