Investing in IT and BFSI stocks can yield good earnings. Jitendra Sriram of BNB Paribas Mutual Fund believes this. He said that apart from energy, earning opportunities are visible in IT and BFSI stocks. This is because the performance of IT and BFSI stocks has been weak in the last two years. In a conversation with Moneycontrol, he spoke openly about the Union Budget 2025.
IT companies will get the benefit of these two things
Shriram believes that IT companies are going to benefit from two things. First, corporate taxes are expected to decrease in America after Donald Trump becomes President. If the tax burden on companies in America decreases, their profits will increase. With this they can increase expenditure on IT. Indian IT companies will benefit from this. IT companies will also get the benefit of weakness in rupee against dollar. The rupee has weakened against the dollar in the last few weeks. This will increase the profit of IT companies.
The impact of Trump becoming President will be more visible than the Union Budget.
When asked about Union Budget 2025, he said that he does not have much expectations from this budget. The reason for this is that there is not a long gap in terms of time between July 23, 2024 and this budget. The government has given indications about its policy in its budget presented on July 23. However, the impact of Donald Trump becoming President in America can be seen on the market. The reason for this is that Trump has indicated to make some major changes in the policy.
Tariff may increase in America
He said that Trump has given some big signals regarding tariffs. His focus will be on increasing manufacturing in America. For this he can increase the tariff. If the tariff increases, it will have a wide-ranging impact. Global inflation may remain at high levels for a long time. This may impact the growth of the global economy including India.
Government will focus on welfare scheme
Shriram said that state governments are trying to increase consumption through their schemes. Governments of 14 states have increased focus on schemes for women. These include girl-sister, Griha Lakshmi and many such schemes. The government will try to increase economic activities by increasing capital expenditure.
Also read: Budget 2025: Opportunity to bet on these 4 stocks now, these stocks will become rockets as soon as the budget is presented.
Government expected to increase capital expenditure
Finance Minister Nirmala Sitharaman is going to present the budget on 1 February. This will be his 8th consecutive budget. It is expected that it will increase the target of capital expenditure. In the Union Budget for FY24, the government had set a target of Rs 11.11 lakh crore for capital expenditure. But, due to the Lok Sabha elections in May last year, the actual capital expenditure was less than the target.