Anil Rego, Founder and Fund Manager, Right Horizons In an interview to Moneycontrol, he said that he does not expect any important policy announcement in Budget 2025. Given the current political stability, he believes the Budget is likely to focus on meeting fiscal deficit targets with the government’s commitment to fiscal discipline and continued investment in infrastructure.
Talking about the market, he said that the prices of large cap shares are looking good at this time. Valuations of mid and small caps are expensive. But some select quality SMID (small-midcap) stocks in these segments are available at good prices. Considering their growth potential, they appear to be at a significant discount.
Anil, who has more than three decades of experience, says that due to favorable conditions, the results of companies are expected to be good in the third quarter of financial year 2025. The festive season, increase in government spending, improvement in consumer demand and wedding season all bring expectations for this quarter.
Do you think most of the bad news has already arrived? Is the market looking cautious ahead of Q3 results, Union Budget and Trump’s policies?
In response to this, Anil said that the budget and Trump’s policies will have an impact on the market only in the short to medium term. These will not have any major impact in the long run. Investor participation remains at a high level. There is also fundamental strength in the market. Anil believes that there are some concerns regarding valuation. But at this time the prices of large cap shares are looking good. Valuations of mid and small caps are expensive. But some select quality SMID (small-midcap) stocks in these segments are available at good prices.
Biggest fall in Broader Indices in 2 months, more than 170 smallcaps fell by 10-23%, know how the market will move next week
Which themes can help in building a strong portfolio in 2025?
On this, Anil said that unlike the 2000s, India’s bull market in the 2020s is different from other emerging markets. This difference is not due to difference in high GDP growth, but due to better earnings growth. As the capex cycle is trending towards a sharp decline in profits, we should focus on select quality stocks and businesses. Hospital shares are expected to see good growth ahead. Apart from this, gold jewelery companies in the retail sector are looking good in the consumption segment.
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