Budget 2024: No populist measures expected, says Seemant Shukla of JM Financial
populist measures are expected in the upcoming Budget. It would — in all likelihood — be pragmatic while there could be some extra push to infrastructure, says Seemant Shukla, Chief Business Officer (CBO) of JM Financial Asset Management. In an email interview with Mint, he speaks about the growing fascination for SIPs (Systematic Investment Plan) among retail investors, best performing sectors of 2023 and the expectations from the market in 2024.
Whatever past trends show, we don't see any populist measures. It should be pragmatic, and urban infra may be added. I personally feel there might be a push.
Perhaps some personal tax may come. But there will be no big-time freebies. The trend so far has been positive for the market since 2014.
From the view point of fiscal management and GDP contribution, the trend has been positive. This will bring cheer to the market. I personally feel that capital market participation has risen.
The number of demat opening has also risen significantly. Total net equity AUM is ₹20.33 lakh crore (Nov 30 data) out of which ₹9.31 lakh crore belongs to SIP, which is a fairly decent chunk. Another interesting data point is that out of 16 crore folios, 7.44 crore belong to SIPs i.e., 46 percent of total number of folios.
Market reflects the GDP growth. When GDP grows, people get more money with per capital income rise. This (rise in market) is about to happen.
Although market hike does not remain purely in sync with the GDP. Market is volatile and there can be some froth in the price. And there could be some price correction ahead.
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