Pankaj Sharma of Equirus Securities says there are muted expectations from the upcoming budget and there is no case for stock markets recovery until corporate earnings improve.
"Nobody is expecting a lot from budget... global factors are driving the markets. As such, I really do not think we can expect too much from the budget," he told NDTV Profit.
"There is lot of constraint with which the government would be working and in that kind of scenario it is very unlikely to expect a great budget," he added.
Mr Sharma discussed his investment strategies:
ITC: There is a realistic possibility that the government would hike excise duty, which would impact ITC's revenues. The government is constrained from all the sides as they have to expand spending on rural economy and at the same time they have to look at increasing revenue. It is easy and soft target for the government to hike excise one more time and on that premise one should go short on ITC.
PSU banking shares: Unless the government shows more confidence and puts in more money to save these banks, it is very unlikely to see a positive bias for these banks. Investors should stay cautious on banking shares.
Infrastructure, consumer discretionary stocks: Investment push for rural sector would help infrastructure and consumer discretionary stocks.
"Nobody is expecting a lot from budget... global factors are driving the markets. As such, I really do not think we can expect too much from the budget," he told NDTV Profit.
"There is lot of constraint with which the government would be working and in that kind of scenario it is very unlikely to expect a great budget," he added.
Mr Sharma discussed his investment strategies:
ITC: There is a realistic possibility that the government would hike excise duty, which would impact ITC's revenues. The government is constrained from all the sides as they have to expand spending on rural economy and at the same time they have to look at increasing revenue. It is easy and soft target for the government to hike excise one more time and on that premise one should go short on ITC.
PSU banking shares: Unless the government shows more confidence and puts in more money to save these banks, it is very unlikely to see a positive bias for these banks. Investors should stay cautious on banking shares.
Infrastructure, consumer discretionary stocks: Investment push for rural sector would help infrastructure and consumer discretionary stocks.
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