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Below Interim Budget 2024 Expectations from Shailesh Saraf, smallcase Manager, MD - Dynamic Equities

Infrastructure spending should be expected to continue. There should not be any reduction. The Modi government has launched some Very good schemes where money is spent wisely; like direct  transfer. Some surprising schemes such as these are something we can expect  that will help the farmers. Next, the government will be keen to provide a nurturing ground for start-ups. A new India requires innovation, and start-ups boost innovation. Many will come into profitability. The Government will give whatever start-ups need.  

As for markets In the Short term, we must reflect that the economy is on a very strong footing. Budget is just one event. Our government  has been predictable when it comes to policy. Economic policies will continue with some small short term corrections that will be healthy for the market. In the Long run we are heading for a 5-7 trillion economy. The market  will give  multi-fold returns. We are on a Tremendous growth path for 3 years. Sentiments are Highly exuberant. 

With respect to sectors, spending on defence will continue. Corruption is being removed and so are loopholes. Then there will be a tremendous focus on railways as they are important for goods transportation. The India to Europe railway will add to the trajectory. Capital allocation on road infrastructure  will be high in addition to expenditure on Capital goods, infrastructure, manufacturing, automobile, healthcare and financial services. I am also very Bullish on the PSU theme. All sectors in PSU are doing well in terms of earnings with growth of 40-50%. For the last 2 years, PSUs have been giving earnings. With railway stocks, PSU banks, financial institutions, PSU is my biggest theme for the next 3-4 years.

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