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The first-time investor in the equity markets should rejoice at the pro-growth Budget. The Budget comes with a stimulus for the economy with unprecedented spending on investment and healthcare.
Fiscal deficit is high but for the right reason, of bringing off budget-borrowing into the Budget and increasing capital spending. The Budget also lays the foundation for accelerated future growth through minimum government and maximum governance.
Strategic divestment of public sector units (PSUs) and public sector banks (PSBs) are game-changers for resource utilisation and contributions to the economy. Asset monetisation of government assets from roads, transmission towers, sports stadium, warehouses etc will raise resources without raising taxes. This will unblock resources to fund investments.
All this will result in higher growth and better corporate earnings in the years to come.
A first-time investor should participate in India’s growth story in the following manner:
(Disclaimer: Views are personal and do not reflect the views of Kotak Mahindra Asset Management Company Limited.)
(Nilesh Shah is Group President & MD, Kotak Mahindra Asset Management Company. He tweets @NileshShah68. This is an opinion piece and the views expressed above are the author’s own. The Quint neither endorses nor is responsible for the same.)
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