Sentiment in stock markets is weak ahead of Union Budget 2025. This time the market pre-budget rally is not visible. Investors are not able to understand where they can get good income by investing. Moneycontrol spoke to Swarup Mohanty, CEO, Mirae Asset Investment Managers (India) to know about this. Asked him about the government’s focus in the Union Budget. He was also asked what kind of strategy investors should adopt in the current environment.
This is the year to increase investment in shares
Mohanty said that the year 2025 is the year to increase investment. This market will benefit those investors who focus on asset allocation. Investors who wait for the right opportunity to invest in the market will lose money. He said that after the decline of the last several weeks, the market level has relatively improved. The margin of safety is also higher than last year. However, it cannot be said that the Indian market has become cheap. NSE 500 has fallen by about 14 percent from its highest level. But, it is still up by about 40 percent in the last two years.
Stocks of great companies at cheap prices
Where are the investment opportunities visible right now? In response, Mohanty said that there are excellent investment opportunities in the market. Shares of good companies are available at low prices. Public issues are coming in the market. India will remain the largest market in terms of public issues for at least two years. The shine of core sectors is going to increase going forward. Consumption and infrastructure will continue to contribute the most to growth. Healthcare stocks will perform well.
Allocation will increase for health education
What are your expectations from the Union Budget? Mohanty replied that the government will have to take some big steps, why the sentiment is a bit bad. Since there are no elections ahead, the government can implement major decisions this year. Allocation for health and education is expected to increase.
Also read: Union Budget 2025: Income tax rules will be easy, Nirmala Sitharaman will announce this on February 1
These rules may come into effect again
Before the Union Budget last year, we were expecting the old rules of long-term-debt taxation to be re-implemented. But, the government did not do this. The government ended the indexation benefit, which was a big blow. I believe that indexation plays a big role in explaining the time value of money to the common man. I hope the government will implement it again in this budget.