Budget 2025: IT, Power and Defense are 3 sectors to focus on as per Manish Jain, Mirae Asset Capital Markets | Stock Market News
Budget 2025: Speaking on triggers to be provided by the Budget, Manish Jain Chief Strategy Officer, Institution Business at Mirae Asset Capital Markets speaking to Mint said that if at all, it’s going to be a short-term. Once budget event is over, it will be back to basics. The sectors investors can concentrate on are IT, Power and Defence
Q1 . Looking at the volatility, how should investors approach the markets ahead of the Budget?
Overall, the approach should be cautious. Mixed third quarter results, softer economic growth, depreciating currency and a difficult global inflation trajectory would keep markets volatile. Portfolio investors can keep 15-20% cash to deploy in lump sum during market corrections. SIPs takes 3-5-7 years to play out so one can continue with that.
Q2. How much more downside you see for the markets now
Nifty is expected to remain under pressure in the light of domestic and global events and in such times, mid and smallcap stocks may fare worse this time. Investors could get an opportunity to buy when the Nifty’s estimated price-to-earnings (PE) ratio falls to 16.5-18.5 times which means that there could be another 800-1000 points fall in Nifty.
Marker Triggers
Q3. Do you think budget can provide trigger for the market ?
If at all, it’s going to be a short-term. Once budget event is over, it will be back to basics. Elsewhere, budget is not given that much importance. It’s given undue attention in India. As long as basics like inflation, GDP growth, fiscal path are maintained, frankly, budget is fine. If any company’s or sector’s feasibility or returns are dependent on budget policy, you might like to stay away from it. If budget further enhances these factors then it’s a bonus factor to invest more in such opportunities.
*Q4. Sectors and stocks that can be considered by investors ahead of the budget and in ongoing Result season
While we do not recommend stocks, IT, Power and Defence are three sectors investors can focus on.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
